You can try the Motley Fool discussion boards if that interests you.
I like this one TMF: Saul’s Investing Discussions
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I don’t think estate tax is payable. Estate tax is inheritance tax, it’s payable by residents. Income tax as well is not payable as India has a double tax avoidance treaty with USA.
You can look at this article as well for more info
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@edwardlobo can you please share the telegram channel / whatsapp group details. Interested to participate. Thanks
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Investing directly in US stocks is a very expensive affair as much of the amount will be paid in charges, thus a mutual fund with foreign holdings might work for almost everybody. Also Ark has lost much of its value now and is similar to Nasdaq returns.
Just wanted to know, does Interactive brokers also provide foreign ETFs and stocks other than the USA or just from that country?
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RBI / SEBI limit of $7B for MFs to invest in foreign equity has reached. Parag Parikh flexicap fund, a popular one for foreign exposure, stopped taking any more subscriptions since 1st feb. Only existing SIPs are allowed. Until the govt increases the limit, no MF can increase foreign equity. They can sell some and buy for that equivalent amount though.
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Investing in US has both its pitfalls and advantages. Its a bit tedious but there are certain companies where there are no counterparts in india. I had opened an account 6 months back but bought my first stock last week (lucky to have seen good stocks crack by 50-60%). Doing through hdfc-stockal
The company is INMD$. HQ in Israel and makes Rf based medical equipments used in cosmetic surgery and others. Innovative company, having scorching growth last few years, tryin to replace older methods of laser, the machine and procedures are patented and published in peer reviewed journals. Gross margins of 85+, net margins 30+. Doubled profit this year. Has cash on balance sheet at 10% of market cap. Available at trailing pe of 25!
Just built a position and looking to add more. Lets see how it pans out.
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When not invested, where do you park the USD? Do you let it stay idle in the broking account?
Hi Folks - Can someone suggest similar alternatives to Screener and Valuepickr and a few good Twitter accounts to follow for a deep and holistic study of US stocks?
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Great great thread started by @rkirana. Very interested in keeping active on this thread.
I am the reverse of @rkirana. I invest in US as an RI and invest in India as an NRI.
Believe in both countries for all of the great reasons that we all know.
Getting into ETFs that will give US the edge are the best sources of investment today. I had mentioned the list of sectors earlier and I still continue to believe that those will be the top sub-sectors for US till 2030.
ARK Funds, GlobalX Funds, and also the normal QQQ/SPY are great funds to be in esp. with ETFs.
Besides that for individual stocks, NOK, ERIC, FIVG, VZ, T and QCOM are best for the 5G theme that is slowly unfolding.
The biggest sector that is down today is Biotechs, and we will not have human life form in the current state today if it was not for Biotects. Pharmas are great to park money for slow growth and dividends, but Biotechs are getting killed for 2-3 years, and when they pop, it is usually huge.
Hope to continue to discuss some great US ideas here by being active.
KKP
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Huge drwadown is expected in US markets in comig weeks and months. If someone is planning to start buying in US markets, would sincerely advise to be patient. One might get the desired stocks at much lower prices.
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@StageInvesting, this is 100% true. If we get a 0.5% hike again, then OK, but what is said with it by the Fed is going to be critical. Lots of focus on weekly/monthly inflation. At this time shrinkflation is already built in, but now the Economic Impact Charge on all items being sold is creating less and less people in stores and, less cars on the road. So, we will hear the Retail Sales drop, the Housing Sales already dropped, and then comes the impact to the GDP. Will we get 2 negative GDPs? Highly likely, but do not know the future…
So, US stock buys should be curbed unless you are doing 10 SIPs for each stock (i.e 1/10th buy of each stock now, and then DCA 9 more times in a Value Average method)
KKP
Why do you think so ?
Such games are not that easy to play. Many folks who were out of the market during the 08-09 crash and more recently in the Mar 20 crash are still sitting on the sideline waiting for the perfect time to invest in the market. If you believe in efficient market theory then the problem is that many smart market participants/makers are already aware about the current situation (i.e. inflation/rate hike/war etc…) and placed their bets accordingly. Now to turn the table in your favor and to get an outsized return (alpha generation) you need surprises in either direction.
For example, I personally invested (Dollar cost averaging) in US/Canada MLP stocks (When they announced no dividend cut even in that tough condition) after the Mar 20 crash when the market was less optimistic on oil and oil related companies future. Fast forward 2 years, These stocks are almost up 200% with hefty dividends as bonus even in this horrific market. It’s impossible to know beforehand which event would trigger surprises (in this case Russia/Ukraine war) and turn the table to our favor. All we need is to invest in good businesses at good prices and wait for surprises to unfold in our favor.
At present, in the US market, growth stocks that are not part of indices are now out of favor and available at throwaway prices. Many of them are down almost 70-90% for not business specific reasons rather due to macro reasons. I personally hold few such stocks in my portfolio though (I built my US portfolio with a barbell strategy with the mix of dividend and growth stocks). If I take the above pandemic OIL fiasco as an example, then I believe that the next big winners should come from these areas. So right now I am playing the same playbook that I did post pandemic, gradually selling OIL/healthcare stocks and buying good quality growth stocks (DCA) for future gain. Being a techy, I have enough conviction to hold on to tech growth stocks even in such dire situations. Hence I am ready to wait for a long time for the table to turn in my favor due to some surprising events that I am not aware of as of today:)
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Well while agreeing with you on certain aspects,would also like to diagree at few points.
a) We need to study more deep whether current price corrections are part of a bull run or there’s structural change ! Last 10 years of US bull run was funded by FED QE , that seems to be going into opposite direction.
b) 2009 -2022 was a more than decade bull-run cycle ! What if we’re ending that cycle and getting into a long bear cycle and getting back into historical PE levels where PE <10 were considered a deal and stocks with PE>20 were considered overvalued ! In that sense overall benchmarks of valuations need to be recalibrated.
c) Increasing interest rates vs decreasing interest rates . After a long period, we’re getting into a former zone.This impacts margins of almost all the compnaies and especially valuations of those tech companies that need consistent pumping of fresh cash to burn it so as to keep growing,
d) The inflation impact on average man’s pocket as well as looming recession , what if major economies across the globe plunge into recession and thus as a result impact the demand .
Another key point here is to differentiate between market correctiosn due to black-swan fall vs a fall due to bigger structural issues (eg inflation/recssion etc) .
I will be cautious and sit on the sidelines as cheaper can get cheaper as market goes to extremes on either side.
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Nasdaq has experienced long stretches of sideways or downslope lasting a decade or such.
The last ten years nasdaq performance is an outlier. But, now is indeed good time to start a dollar cost averaging approach into the US markets.
One aspect, I don’t see brought up here is the insane estate, death and gift tax problems for
Alien residents and alien descendents [read indian citizens with Indian children]. If you die suddenly [it’s a possibility], uncle Sam will take 40+ percent of your assets [above 60k usd].
Add to that debt fund taxation.
Finally, us markets are much more efficient than ours. If you think genetic engineering, so do others. Very very unlikely, that you have better insights than the US market itself.
Thus from an Indian citizen in india with Indian citizen children, the best way IMHO is
- About 70% invested in PASSIVE index etfs, these should be via india mf Fof route to avoid
Estate tax issues. - About 15% in ACTIVE india based fof mf like dsp global innovation.
- So exposure 10 to 15% to china tech via Mirae asset HkTECH etf.
- Less than 60k usd in a US brokerage buying individual us stocks.
Note that if you buy non usa domicile companies listed on US exchanges, like Atlassian plc,
it is not considered as a us situs asset and will not invite death taxes.
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Excellent points many short sighted people ignore, thanks for bringing out. Is gift & estate tax also 40% of total assets? Also, there is inheritance tax in US as well, any idea on that?
In above taxation context, what is the treatment for Indian Citizen with American Citizen child? What is best way to plan for such a case in your opinion?
How about option to simply invest in India…whats the need of US/China etc. when we have all kind of stocks/MFs and market situations in India itself ?
You can gift 154000 usd to a non us citizen spouse without incurring taxation. I am not aware
of us citizen inheritance.
Second point regd US china exposure. I feel you need about 25% exposure to us/china markets.
In particular, my exposure is mainly in tech because india is not really at the bleeding edge. Think exposure to google, amazon, baba of tomorrow. There simply aren’t companies that innovative in india.
My individual stock holdings attempt exposure in these themes. To some extent,
Nasdaq 100 and MAHKTECH ETFs will give you good exposure, but can fine tune.
1 - biotech, Gene tech
2- semiconductor, IoT, 5G, AI hardware, Additive manufacturing
3 - robotics, autonomous, electric mobility, New energy
4 - Cloud, digitization, Ecommerce, Metaverse, AR/VR
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Thats not correct. This was covered here and I gave a link on Dec’21
Please do a detailed study. You are misinformed.
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If the decedent was a nonresident and noncitizen, his or her taxable estate is subject to the estate tax under Sec. 2101. In this case, the value of the gross estate is that part of the gross estate that at the time of death is situated in the United States.