How to invest in international ETFs from India

Diversify Your Portfolio with International ETFs: A Step-by-Step Guide for Indian Investors

As an Indian investor, you're likely familiar with the benefits of diversification in your investment portfolio. However, have you ever considered investing in international ETFs to further diversify your portfolio? With the rise of global markets and the ease of investing in international assets, it's now easier than ever to tap into the opportunities offered by international ETFs. In this blog post, we'll guide you through the process of investing in international ETFs from India.

What are International ETFs?

International ETFs, also known as global ETFs or international index funds, allow you to invest in a basket of stocks from countries outside of India. These ETFs track a specific index, such as the MSCI World Index, which includes stocks from developed markets around the world. By investing in international ETFs, you can gain exposure to a broader range of assets, potentially reducing your portfolio's risk and increasing its returns.

Why Invest in International ETFs?

Investing in international ETFs offers several benefits, including:

• Diversification: International ETFs allow you to invest in a broader range of assets, reducing your portfolio's risk and increasing its potential returns.
• Global Market Exposure: With international ETFs, you can gain exposure to emerging markets, developed markets, and other regions, potentially increasing your investment returns.
• Convenience: International ETFs are traded on Indian exchanges, making it easy to buy and sell them.
• Low Costs: International ETFs often have lower fees compared to actively managed funds.

How to Invest in International ETFs from India

Investing in international ETFs from India is relatively straightforward. Here's a step-by-step guide to get you started:

Step 1: Choose a Broker

To invest in international ETFs, you'll need to choose a broker that offers international trading facilities. Some popular brokers in India that offer international trading include:

• Zerodha: Zerodha offers international trading facilities through its Kite app and website.
• Angel Broking: Angel Broking offers international trading facilities through its mobile app and website.
• ICICI Direct: ICICI Direct offers international trading facilities through its mobile app and website.

Step 2: Open a Trading Account

Once you've chosen a broker, you'll need to open a trading account. This typically involves providing some basic information, such as your name, address, and PAN card details.

Step 3: Fund Your Account

To invest in international ETFs, you'll need to fund your trading account. You can do this by transferring money from your bank account or through other payment methods.

Step 4: Choose an International ETF

With your account funded, you can now choose an international ETF to invest in. Some popular international ETFs include:

• HDFC Index Fund - MSCI World Index Fund: This fund tracks the MSCI World Index, which includes stocks from developed markets around the world.
• Nippon India International Fund: This fund tracks the MSCI ACWI Index, which includes stocks from developed and emerging markets around the world.

Step 5: Place an Order

Once you've chosen an international ETF, you can place an order to buy or sell the fund. You can do this through your broker's mobile app or website.

Real-World Example

Let's say you want to invest ₹1,00,000 in the HDFC Index Fund - MSCI World Index Fund. Here's how you can do it:

1. Open a trading account with Zerodha.
2. Fund your account with ₹1,00,000.
3. Choose the HDFC Index Fund - MSCI World Index Fund.
4. Place an order to buy the fund at the current market price.
5. Monitor your investment and adjust your portfolio as needed.

Actionable Takeaway

Investing in international ETFs can be a great way to diversify your portfolio and potentially increase your investment returns. By following the steps outlined in this blog post, you can easily invest in international ETFs from India. Remember to do your research, choose a reputable broker, and monitor your investment regularly.

Disclaimer: This blog post is for informational purposes only and should not be considered as investment advice. Please consult with a financial advisor or a registered investment advisor before making any investment decisions.