https://youtu.be/fsdWVnQyjcY

Transcript 

[00:00:15.250] - Darshan Doshi

Hi everyone. Welcome back to Swatantra. I have with me my partner, podcast partner Jaydeep Doshi from Proinvest Nirmiti and I am Darshan from Dasar. At Swatantra what we aim to do is to simplify investing so that you can be financially independent by investing at the right time, with the right knowledge, with the right partners. So today what we are going to do is we are going to talk about global investing. And this is a topic which is of very high interest to me personally. And so I'm going to ask a lot of questions to you Jaydeep, which are kind of very relevant to me and many of the people that I know and I'm talking to today. So quickly, what is global investing? I am an Indian citizen living in India, working at a job, earning money and now wanting to invest in the US market, the European market, or Australian market, right? But I don't know how to do this. I don't know what this means from a taxation standpoint. Am I even allowed to do this? How would I do this? How would I choose? How would I research stocks and then why would I do this? So we want to cover all of these topics in this podcast today and we are going to simplify global investing as an Indian citizen living in India. So the first and the most basic question, why should anyone invest in global stock markets when you have sensex, when you have Nifty 50 doing so well?

[00:01:52.670] - Jaydeep Doshi

Yeah, so I mean, first thing is, while investing, the basic rule is to not have any kind of biases. So first thing is, whether you're in India or you're in the US, you must always consider the right investment opportunity for you. India being just 3% of global GDP, there's like immense opportunities globally. There are a lot of listed companies who are trading and doing very well. To give an example, everyone of us use Amazon, we use Netflix and company and directly-indirectly we know that we are going to be associated with them for the years to come. And I think why shouldn't we think of these businesses also, india being a developing market, we should also, as a part of diversification, have some exposure to developed countries also where there's more transparency, data is more efficient and information flow is more transparent over there or at the same time everybody gets the information. So it makes a lot of sense in terms of diversification and identifying good business and investing in them and having no biases also.

[00:03:01.500] - Darshan Doshi

Okay, so basically, if I am investing Rs 1000 anywhere in any instrument, as an investor, I'm trying to maximize my returns. At the same time, I don't want to lose that Rs 1000 that I have earned by working hard. And so diversification portfolio management becomes important and this is where maybe we can even discover some great businesses like Amazon, like Apple, like Netflix, although it has taken a bit of a beating recently. So, okay, what are my options? I want to invest abroad outside India. What are the best places and what are the various options that I have to invest globally?

[00:03:49.210] - Jaydeep Doshi

So the most common or most easy option these days is investing in the US markets. So Motilal Oswani way back in 2009 had introduced NASDAQ 100 ETF. And as you know, the last decade has been for the developing countries, developed countries like US. And they've done better than the emerging countries or developing countries like India. And we have these ETFs which we can buy through mutual funds. We can buy stocks also now and buy them in fractions. We can buy an Indian mutual fund which has small part of it invested only in the global market. It's more to do for the taxation purpose. So, yeah, we have these ETFs, we can buy stocks, we can buy infractions. And this is all about these are the options that we have. But most options that we have are directed are more for the US markets. And we don't really have a lot of choices to