Indian investors in US pick tech, EV stocks |
A recent report by Winvesta, a broker that facilitates investing in overseas stocks, states that most Indians investing abroad showed a clear preference for technology stocks, followed by electric vehicle makers and blockchain players during 2020-21. In the midst of the COVID-19 pandemic, Indian investors have begun to visualise growing need and impact of technology. Winvesta said Tesla, Nio, Riot Blockchain, Gamestop and Xiaopeng Motors were the most traded stocks in terms of volume on its platform. The rising popularity of electric vehicles and blockchain sectors showed Indians are not shying away from investing in emerging technologies, in which there is negligible representation in the country. Passive investing also gained traction with about 25 percent of investors choosing ETFs. The majority of investors have invested in Nasdaq 100, followed by Vanguard Total Stock Market Index, ARK Genomic Revolution, S&P500, and ARKK (ARK Innovation). Geographical ETFs and ADRs accounted for about 10 percent of their investments. Although for many Indian investors, US investing is synonymous with the popular FAANG stocks short for Facebook, Amazon, Apple, Netflix and Google, WinVista said they today make up only 17 percent of the total exposure of Indian investors. The ratio has been trending downward since the beginning of last year, as investors shifted to other high growth stocks like Tesla and Nio. However, Apple, Amazon and Microsoft continue to be among the top 10 most popular stocks on the platform. Investors from Delhi-NCR, Bengaluru and Mumbai make up almost 25 percent of its client base, followed by those from Pune, Chennai and Hyderabad. Only 45 percent of Winvesta`s client base is from metropolitan cities, which shows Tier-II cities are not behind in investing beyond India`s borders. Lately, Indian investors seem to be getting bullish on passive investing and looking to invest in US ETFs, which can give them exposure to innovative themes and markets beyond the US. There has been an increased interest among millennials – especially from among resident Indians and NRIs -- in the technology sector, select ETFs and specially curated stocks portfolio called `vests` which have given good returns.
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