With Apple being one of the world’s largest and most successful companies, many investors in India are interested in learning how to buy Apple shares in India. However, purchasing stocks of US companies like Apple from India involves certain processes and considerations. This comprehensive guide will walk you through the different methods available to Indian investors for buying Apple shares directly or indirectly in 2024.
How To Buy Apple Shares In India 2024
We will cover topics like opening an international trading account, buying fractional Apple shares, investing in ETFs and mutual funds that contain Apple, foreign exchange requirements, taxation rules, and more. By understanding the step-by-step process, this post aims to provide practical insights to Indian investors on how to buy Apple shares from India.
By evaluating the various options to buy Apple shares and wisely managing risks, Indian investors can consider allocating a portion of their portfolio to this global technology bellwether.
A. Direct Investment
1. Opening an International Trading Account
To directly purchase Apple shares, Indian investors first need to open an international trading account with a broker that provides access to US stock markets. Choosing an established, regulated brokerage with robust trading platforms, research tools, and competitive fees is advisable. Completing KYC formalities by submitting identity and address proof is required to open a trading account.
The advantages of direct investment are greater control, ability to time trades, and full ownership of shares. Cons include high investment amounts, higher brokerage costs and US tax withholding.
2. Fractional Shares
Fractional share investing allows purchasing a portion of a stock instead of whole shares. For example, buying 0.5 Apple shares at current market prices. This enables smaller investments in expensive stocks like Apple. Popular platforms like Vested Finance and Winvesta offer fractional US shares to Indian investors.
Key benefits are low minimum investments, ability to diversify with smaller capital, and any dividends or splits applied proportionately. Periodic investments can be made through SIP-like plans.
B. Indirect Investment
1. Exchange-Traded Funds (ETFs)
ETFs are collections of stocks or assets that are bundled together and trade on exchanges like stocks. Investing in ETFs that hold Apple gives indirect exposure. In India, ETFs like Nifty 50 US Dollar Index ETF and Motilal Oswal Nasdaq 100 ETF invest partly in Apple and other US tech firms.
ETFs offer diversification, low costs, and the ability to invest smaller amounts compared to direct stock purchases. However, there is no control over the exact stock allocation.
2. Mutual Funds
Mutual funds pool money from investors to purchase a basket of stocks and assets based on stated investment mandates. Many mutual funds in India like Motilal Oswal S&P 500 Index Fund have allocation to Apple and other US equities.
Benefits include professional management, diversification with low investment amounts, and less tax burden than direct investment. But there is lack of control over the actual Apple share holdings.
Foreign Exchange Conversion
To directly purchase Apple shares in the US markets, Indian rupees must first be converted to US dollars. This can be done through the broker’s platform or a bank. Currency conversion charges and wire transfer fees are incurred in this process.
Tax Implications
For direct purchase of Apple shares, short-term capital gains tax and long-term capital gains tax (if shares held over 24 months) must be paid in India. Indirect investments in ETFs and mutual funds attract lower tax rates. It is advisable to consult a tax expert for guidance.
Summary
Indian investors have several pathways like international trading accounts, fractional share platforms, ETFs, and mutual funds to gain exposure to Apple stock. Careful evaluation of costs, control over investments, taxation, and diversification must be done before selecting the ideal investment method matching an investor’s requirements and goals.
FAQs
1. How did Apple rise to the top of both the IT and stock markets?
Apple’s continuous focus on innovation, intuitive product design, and building an ecosystem of devices and services allowed it to disrupt and lead various consumer technology segments. This drove strong financial performance and established Apple as one of the world’s most valuable brands and profitable companies.
2. Is it safe to buy US stocks from India?
Yes, purchasing US stocks including Apple from India is safe when done through reputable registered brokers or platforms. Proper due diligence and risk management practices are advised.
3. What is the minimum investment amount required?
For direct stock purchase, minimum investment is 1 share which can cost $130+ currently. Fractional shares allow lower minimum investments of even $1. Indirect investments through ETFs and mutual funds can start from $50.
4. Which platform is best for beginners?
Fractional share platforms like Vested Finance simplify US stock investing for Indian beginners. Established brokers like Interactive Brokers also offer user-friendly interfaces and tools.
5. How do I track my Apple share performance?
Apple stock price and charts can be tracked on platforms like Yahoo Finance and Google Finance. Portfolio management tools also provide performance tracking.
6. What are the risks involved in investing in Apple shares?
Key risks are foreign exchange fluctuations, volatility in global markets and tech sector, competitors, business risks, economic cycles, and geopolitical issues. Proper analysis and risk management required.
7. Apple Inc. Stock (AAPL) Information At A Glance
- Exchange: NASDAQ
- Industry: Consumer Electronics
- CEO: Tim Cook
- Market Cap: $2.25 trillion (as of Feb 2023)
- P/E Ratio: 22.3 (as of Feb 2023)
- Dividend Yield: 0.6%
8. Historical Performance Of Apple Stock (AAPL)
- 10 Year Returns: 829%
- 5 Year Returns: 98%
- 1 Year Returns: -15%
9. Top 10 Apple Inc. (AAPL) Products
iPhone, iPad, Mac, AirPods, Apple Watch, Apple TV, HomePod, AirTag, Apple Card, Apple Pay
10. 7 Benefits Of Buying Apple Stock (AAPL)
- Strong brand loyalty
- Ecoystem of products and services
- Consistent innovation
- Healthy balance sheet
- Strong growth outlook
- Attractive valuations currently
- Robust dividend and buyback programs
11. Cons Of Buying AAPL Stock
- Susceptible to consumer tech market risks
- Dependent on product innovation and launches
- Intense competition from Samsung, Google etc.
- Regulatory challenges in major markets
- Supply chain disruption risks
12. How To Buy Apple Stock (AAPL) From India Using Cube?
- Open a Cube account and complete KYC process
- Deposit funds into Cube account via UPI, netbanking etc.
- Search for ‘Apple’ and select Apple Inc.
- Enter amount to invest and preview order
- Complete order confirmation and share allotment
- Apple shares will reflect in Cube portfolio
13. Should You Buy AAPL Stock?
Apple remains a strong long-term investment option but investors should evaluate risks and align exposure to their goals. Moderate allocation may be considered on dips.
14. Any guesses on what is the current price of an Apple share in INR?
As of February 2023, Apple stock is trading at around $150. With the USD-INR rate at approximately 82.50, the per share price in INR would be around Rs. 12,375.
15. Apple at a glance in recent times
- Revenue over $394 billion in FY 2022
- Launched iPhone 14 series, Watch Ultra, AirPods Pro 2
- Services segment driving growth
- Active install base of devices over 1.8 billion
16. Should you invest in Apple stock from India?
Apple’s strong fundamentals, brand power and prospects make it an attractive investment. Indian investors can consider allocating a portion of their portfolio to Apple via safe regulated platforms after evaluating costs, risks and goals.
Also Read: Top 10 Share Market Investors In India 2024: Share Market King in India
