Event Overview:

This event aims to demystify global investing, showcasing its accessibility, ease of use, and benefits for Indian investors through Stockal.

Topics covered:

• Introduction to Global Investing: Define global investing and its growing importance in today’s interconnected world. Highlight how it differs from domestic investing.
• Why Invest Globally?: Discuss key benefits such as diversification, access to high-growth markets, and currency hedging.
• Common Misconceptions About Global Investing: Brief: Address prevalent myths and concerns (e.g., high costs, complex regulations) and debunk them with facts and data.
• Stockal: Your Gateway to Global Markets:  Introduce Stockal as a user-friendly platform simplifying global investing for Indian users. Emphasize features like fractional shares, easy account setup and Products – Stacks.
• Spotlight on Global Investment Opportunities: Showcase popular and trending global stocks, ETFs, and sectors that Indian investors can explore.
• Risk Management in Global Investing: Offer practical tips on managing risks associated with currency fluctuations, geopolitical events, and regulatory changes.
• Tax Implications for Indian Investors: Explain the tax rules and regulations applicable to global investments made by Indian residents.
• Getting Started: A Step-by-Step Guide:  Provide a clear, actionable guide on opening an account, completing KYC, funding the account, and placing the first trade on Stockal.

Event Summary:

Transforming Financial Futures Through Global Investing

In the meeting, Avilash from Stockal introduced the topic of transforming financial futures through global investing. He was joined by Ram from the business team at Stockal and Rohan from the marketing and events teams. Avilash experienced some technical difficulties with screen visibility, but the meeting continued. The team planned to discuss global investing and how it can be made easy.

Global Investing: Benefits and Debunking

Avilash discussed the benefits of global investing, emphasizing the importance of accessing the global markets and the opportunities they offer. He highlighted three main reasons for global investing: scale, access to innovation leaders, and the currency advantage. Avilash debunked common misconceptions about global investing, such as the need for a finance degree and the belief that only the rich can invest overseas. He also introduced the platform’s offerings to make global investing easy and accessible to everyone.

Introducing ‘Stacks’ for Instant Diversification

Avilash discussed the game-changing feature of ‘ stacks’, a portfolio curated by experts, similar to a mutual fund. He highlighted three top-performing stacks: OMNIAT, FAANGM, and USTECH Stack. Avilash emphasized that stacks represent the smartest way for most investors to begin their investment journey, offering professional expertise with minimized risk at just one click. Ramakrishnan then took over, comparing stacks to a buffet, emphasizing the instant diversification, lower expense ratio, and flexibility they offer.

ETF Market Growth and Investment

Ramakrishnan discussed the growth of the ETF market, which has seen a 40% increase in just one year, with assets of 7 trillion at the beginning of 2024 and over 3 trillion flowing into ETFs. He explained that ETFs provide a direct exposure to foreign mutual funds with minimal cost and expense ratios, making them a popular choice for domestic investors. He also highlighted the role of major financial powerhouses like Blackrock, Vanguard, and State Street in creating ETFs. Ramakrishnan further discussed the types of ETFs available, including cryptocurrency ETFs like IBIT managed by Blackrock, and international ETFs that provide exposure to global markets like Argentina. He concluded by emphasizing the robustness of the US economy, which has outpaced the Indian market in the last year, and the potential for investors to tap into this market through ETFs.

Trump’s Administration and Sector Growth

Ramakrishnan discussed the potential growth of various sectors under Trump’s administration, particularly the oil and gas sector, tech sector, entertainment, and gaming industry. He highlighted the strong cash flows and dividend payment history of Exxonmobil Corporation and Chevron, making them attractive for dividend investors. He also pointed out the increasing demand for semiconductor chips and the need for security in the tech sector, with Palo Alto Networks being a notable stock. Furthermore, he mentioned the growth of Netflix and the potential of the gaming industry in India due to its young population.

Financial Update and Global Investing Benefits

Ramakrishnan discussed the financial sector’s top performance in 2024, attributing it to rate cuts by the Federal Reserve in the US due to easing inflation. He emphasized the importance of risk management and diversification in investing, suggesting various assets such as gold, ETFs, bonds, currency, and inverse ETFs. Avilash then explained the tax implications for Indian investors, highlighting the double taxation avoidance agreement between the US and India, and the increase in the tax-free remittance limit to 10 lakh rupees. He also introduced Stockal, a platform designed to facilitate global investing for Indians, emphasizing its ease of use and the benefits of global diversification. The conversation ended with an invitation for a Q&A session.

Stockal Investment and Multi-Currency Bank

Ramakrishnan addresses several questions from participants about investing in global stocks through Stockal. He explains that stacks are managed portfolios based on themes, which provide an easy way to invest without screening individual stocks. Ramakrishnan also discusses the upcoming launch of a multi-currency bank account product to help reduce forex transfer charges. He clarifies that both individual stocks and stacks are available for investment, and provides information on tax reporting requirements for global investments. Additionally, he mentions the availability of ETFs that invest in Chinese markets and other countries, as well as the option for long-term limit orders valid for up to 90 days.

Global Investing and Taxation QA

A participant expressed dissatisfaction with the simplistic graphs provided and suggested using alternative websites for analysis. Ramakrishnan confirmed that the product team is working on improving the charts and they will be implemented soon. Participant sought clarification on the taxation part, and Ramakrishnan explained that short-term investments are taxed based on the income tax slab rate, while long-term investments are taxed at a flat 12.5%.  Participants also raised a question about the annual maintenance charges, which Ramakrishnan clarified as the annual subscription fee for the brokerage. Participants corrected Ramakrishnan’s statement about the withholding tax, explaining that it’s not the total tax but a deduction that can be adjusted against the total tax. Ramakrishnan agreed to check the information and get back to the team. Avilash and Ramakrishnan discussed the trend of money moving into ETFs and the availability of bond ETFs that do not provide dividends. Avilash also suggested considering US bond returns, which have been going up in the past. Rohan ended the conversation by thanking everyone for their participation and encouraging them to reach out with any remaining questions.