Stock market investors alert! Eyeing US markets? Groww starts with for Indian investors — Top 5 things you should know
Major online investment platform Groww, which accounts for over 29% of the country’s 46 million active investors across stock brokerages, rolled out trading in the United States-based equities directly through its app in early October.
Rolled out in phases over four weeks, it offered access to US companies including Alphabet, Apple, Micron, and Nvidia among over 10,000 US stocks, exchange-traded funds (ETFs), and fractional share ownership, according to chief operating officer and co-founder Harsh Jain, CNBC reported.
Indian investors look to diversify beyond domestic markets now have an avenue to explore as Groww and other investing apps, such as Zerodha and Angel One, have are facilitating investors to buy and sell US-listed stocks and ETFs.
For investors, this provides access to international companies and investment themes that may not be readily represented in the domestic market. Amid this, here are some of the key features and considerations for investors considering the option:
- Access to global companies and ETFs
On the Groww app, investors will have access to over 10,000 US-listed stocks and ETFs across sectors such as artificial intelligence (AI), software-as-a-service (SaaS), semiconductors and space technology, the company said.
This is a chance for domestic investors looking for a share in US tech giants such as Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla; besides participating in ETFs tracking broader indices and specific sectors, such as the Invesco Nasdaq 100, SPDR S&P 500, SPDR S&P 500 and Vanguard S&P 500.
- Fractional investing lowers the entry barrier
According to the company, the facility of fractional investing allows customers to purchase a portion of an individual share rather than having to buy an entire share. “This can make companies with relatively high share prices more accessible to investors looking to start with smaller amounts. Investors can also explore market information, discover securities and monitor their US investments alongside their other holdings on Groww,” it added.
- How to complete account activation, onboarding
Investors using the Groww app can access the US Stocks section under ‘Products and Tools’ and initiate the account activation process. The onboarding involves submitting and verifying personal and financial information, including employment status, annual income bracket, liquid net worth and primary source of funds.
Once the required verification is completed, investors can proceed to fund their accounts and begin investing.
- How funding and placing orders will work
— The Groww app supports online funding through eligible bank accounts with Axis Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
— You can select a linked bank account, enter the amount to transfer and complete the applicable bank-authorised remittance and authentication process.
— Depending on the bank, this may involve confirming account details, accepting relevant declarations and completing OTP verification. Certain banks also offer net banking and debit card authentication options.
— Once the funds are credited to the US dollar balance, investors can select an eligible US stock or ETF and place a buy order through the app. Customers can also link multiple eligible bank accounts, subject to applicable verification requirements.
- Regulatory requirements and investment risks
The statement said that Groww's international investing service is offered through Groww IFSC, which holds Global Access Provider and broker-dealer registrations under the International Financial Services Centres Authority (IFSCA).
— For Indian residents, overseas investments are subject to applicable foreign exchange regulations, including the Reserve Bank of India's Liberalised Remittance Scheme (LRS).
— Investors should also account for currency conversion charges, taxation and other applicable transaction costs.
— Since investments are denominated in US dollars, movements in the rupee against the dollar can influence overall returns when funds are converted back into rupees.
— International equities are also exposed to market volatility, company-specific developments and global economic conditions. Investors should understand these risks and the applicable regulatory requirements before committing funds.
“Access to US-listed stocks and ETFs provides Indian investors with another avenue to explore international markets and diversify their portfolios. As with any investment, the choice of securities and the amount invested should be guided by individual financial goals, risk appetite and investment horizon,” it added.
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>
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