An amazing way to diversify your investment portfolio is to turn to the overseas markets. Investing outside of domestic markets opens the doors to profiting from the economic policies and changes from multiple political regions.
It also means if one market goes down, you stay afloat. If your investments are widespread and your assets are not limited to one economy, your chances of taking a substantial loss decrease and your chances of growth increases drastically.
Foreign investments also give you the benefits of currency exchange profits. Scoring one per cent in dollars versus gaining 1 per cent in rupees, both have a tangible difference. This means you can profit or lose with the recline or decline of currency values as well.
The current growth recession in the Indian economy has everyone their toes. Though traders make money from any market conditions if they play their cards right, is it still as profitable as possible?
- NSE Nifty 50 index has been one of the most profitable, globally falling behind only German DAX and USA S&P. It was on the epitome of BRIC and also in caparison of all the indexes in Asia as of 2012.
- Commentators assumed that post-elections of 2019, the new government would introduce economic stimulus as attention would revert to the economy. Several said the economy would stay strong, but growth would be slower and be lower than the rate of the record low of 2018. But the current state narrates a different story, the economy is in decline with inflation at 3.88% and rising.
- Indian economy that is majorly dependent on domestic factors and fortunately remains none to least affected by any issues of the US-China trade war and American interest rates.
- Pessimism about market performance globally is skyrocketing in the near future. The expectations of the markets performing with volatility do not help the raising uncertainty and anxiety of the investors and traders of the Indian market.
- The strength of INR has been falling since 2012 annually. This means the exchange rate has increased consistently, the best part is investing in the dollar in the past now or in the past would mean higher earnings when USD is exchanged in INR.
Profits will turn extremely easy if the U.S. dollar keeps rising without investing directly in terms of INR. Moreover, in the last year, the U.S. dollar index surged 21% and the PowerShares ETF climbed 19%. The S&P 500 , a benchmark for comparison and the index comprising of the top 500 performers of the NYSE, have officially given 22% in terms of rate of return in the year 2017.
Investors can optimistically expect more than 6% returns in the coming decade according to The Vanguard Group even though 2018 has been comparatively unpleasant for the investors in terms of rate of returns. The growth rate is expected to be slower but with the declining rupee as the dollar gets heavier to buy it also means more rupee earned in exchange for USD. If the returns in USD are converted to INR the investor has a chance to gain more than what they would if they in INR terms.
This means that even with a growth recession, Indians can emerge with profits in their accounts.
Which stocks can gain the most profits?
The basic difference would be in there is a 200% growth in two stocks, one
INR and the other USD the USD returns would be actually much higher when converted to INR.
This can be proven said due to the examples below.
300 Rupees in 2009, 1,760 Rupees in 2019.
But there is an 18% on-going recession in the Indian automobile sector, making it vulnerable to losses due to the market conditions.
540 Rupees in 2009, 3,725 Rupees in 2019.
830 Rupees in 2009, 4,767 Rupees in 2019.
FAANG stocks stand for Facebook, Amazon, Apple, Netflix and Google (now Alphabet Inc.). They have been by far some of the most profitable stocks since their IPO.
520 INR in 2009, 16,883 INR in 2019.
It might not be the only one in the market but it surely dominates the market. From the online market to Web Services, Amazon’s moat (its sustainable competitive advantages over competitors) not only protect amazon.com but also Amazon Web Services. AWS subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals.
If you had invested in Amazon 10 dollars in 2009 then as of February 2019 you would have 236 dollars in your account. In the 10 years of Amazon, it has given more than 2000% returns. That growth and return are something to talk about, surely worth investing in.
57,145 INR in 2012, 3,41,964 INR by 2018
Has one substantial moat in the market with looming competitors that get nowhere close to even touching Facebook. Your investment from 2012 would have been the receiver of quadruple amount of your investment in Facebook by February 2018. Meaning 1000 USD would have turned to 4,600 USD
AAPL or Apple stock:
629 INR in 2009, 18,194.51 INR in 2019.
Apple as iconic as ever and has people queuing up for hours just for a new product when a much cheaper android is up for sale in the same market. Apple has gained more than 900% value in the span of 10 years from 2009 to November 2019. 12.96 USD investment would now be worth 257.13 USD.
Google still out-performing many of S&P 500 could have tripled your money by 2019 if you invested in 2007.
How can you invest in a market outside of your country?
Simple, the answer is as clear as its name, Kristal.
What is Kristal? Why should you choose Kristal?
Kristal is the best of technology combined with investment forecasting. It has an overseas USD brokerage account which helps you buy and sell portfolios with investments in (non-complex) ETFs only.
It is an AI-based Investment advisor which selects and creates investment portfolios which are an aggregate of stocks called Kristals. They are made based on the assessment of its AI algorithm and ranked accordingly.
Their consumer base is spread across 22 countries to whom they efficiently provide the best advice to invest in markets where they have access which is more than 100 global exchanges. With Kristal, opportunities to invest in the niches not traditional to your way also remain wide-open. All you have to do is grab it to modify and diversify your investment portfolios. Their services do not charge any brokerage fee over 50,000 USD along with help and customer support available over chatbots, emails and calls all day long.
The company is funded by IDG Ventures. The founder & CEO, Asheesh Chanda and co-founder and CTO Vineeth Narasimhan along with a team of excellent financial advisors, researchers and market specialists work tirelessly and consistently to provide their consumers with a holistic plan for their needs. The management is flawless with all reports and details available about them on kristal.ai
They compel themselves to constantly innovate to provide better and create a better suggestions system for all the investors working with Kristal, they are sure to provide the best investment strategies, in a way to build a community of portfolio managers, affiliated partners & investors by ensuring the presence of investments and assets from domestic as well as over-sea sources.
Looking at the current onset of a global growth recession, the rate of returns is sure to drop all over. Foreign securities give you a one-up and a chance to earn more due to the difference in the currency exchange rate. You have a chance to stabilise and multiply your earnings through returns with foreign securities. It would be ideal for you to start investing in overseas markets, specifically profitable markets with a stronger currency like NYSE and NASDAQ.
As the decline in the strength of Indian rupee continues, profits will not be of much value in the international market as of the near future if they are gained in terms of INR. With Kristal , your profits are just a few steps away but not limited. Sources of profits are all there, all you have to do is click