I am seeing more and more people are getting into buying the US ETF mainly because they want to diversify. This is a good option to diversify. We have the option to buy the US ETF from the Indian Market. And then we can also buy it directly from the US market using the platform like IndMoney and Vested.
In my opinion the best is to buy directly from the US marlet instead of the Indian Market because of the RBI restriction. RBI or Reserve Bank of India has a hard limit on the companies to invest in the US market. And that's why when the amount is hit, they don't invest in US market, they speculate. That means, based on the US market, the ETF pricw goes up and down but there is a huge difference between the actual net asset value and the met asset value shown on the ETF.
And because of this difference there is a higher volatility in the market. Now if compared to this if you can directly invest in the US market then it's good. There is no difference in Net Asset Value and you get the actual value. Next the volatility is negligible as well as you can sell or buy instantly as there are more investors there.
And that's the reason I have stopped investing from the Indian marlet completely. I was investing in S&P 500 from the Indian marlet via Mutual Fund. But now I have stopped it and directly investing in the US market and investing in VOO. I am only investing in the S&P 500 ETF and not any other ETF when directly investing and I am on profit as of now. S8nce I am not investing a lot, I don't have to worry about the TCS which is levied on investing above 7 lakhs in a year.
