There are several reasons to consider becoming a global investor. A motivating need to think about investing in the global market may arise because you are leaving India owing to work. This might urge you to consider making changes to your financial plan in order to maximize benefits using your new overseas residence – as an Indian. Investing abroad is also a good decision if you’re looking to diversify your assets in order to mitigate the risk associated with your portfolio. It is also well known that the global market is the best place to hunt for bigger and better opportunities that may be more profitable when compared to local options. Another reason to think about investing abroad is because, in some cases, foreign companies do have better resources and facilities, optimal levels of government cooperation and maintain higher standards, making them better options for investments. 

However, finding the right investments in international waters is extremely complex and remains hard to navigate. In this sense, the transition to a global investor is the right move for seasoned investors who already have a confident grasp over the dynamics of their local market. Moreover, for small scale investors, entering the global market may be counterproductive as it may be impossible to overcome initial costs in order to see a profit. 

So for those Indian residents who can comfortably exceed the minimum requirements, and NRIs who have sufficient funds to invest, the global market is the place to diversify your portfolio. Subsequently, for NRIs, a well structured cross-border financial plan can ensure that they can maximize benefits from overseas investments, after their return to India as well. Further, if you are an NRI, you are not restricted by the cap of $250,000 that applies to Indian residents under the RBI notification in the Liberalised Remittance Scheme (LRS). In this case, you stand to make a much higher margin of profits on foreign investments. Therefore as an NRI, it will be in your best interest to hire a certified cross-border financial planner or a wealth management firm to help you devise a sound cross-border plan. 

As an Indian resident partaking in more viable and profitable opportunities that exist outside local markets, there are several factors that you need to consider in order to be able to ensure that your overseas assets are protected. For an NRI, financial planning becomes even more complex because the variables increase manifold. So, before you begin your journey as a global investor, here are some key points to keep in mind:

1. For Indian residents, as per the RBI notification in the Liberalised Remittance Scheme (LRS), an individual can invest up to $250,000 overseas. But as a family unit – of four, for example, you may invest up to $1,000,000. Minors can also be remitters if form A2 is countersigned by the natural guardian. 
2. All investments will have to be made through Authorised Dealer (AD) – an individual who is specially authorized by the RBI to deal in foreign exchange and foreign securities transactions.
3. The brokerage charges you have to pay will be in line with the costs of the market you are trading in; there may also be different annual/monthly maintenance charges.
4. All profits you receive are subjected to the currency exchange rate. The fluctuation in price as a factor of the exchange rate at the time of purchasing and selling stock must be taken into account. Suppose you purchase stock when the currency exchange rate was $1 = Rs 68 and happen to sell it when $1 = Rs 62, then you automatically lose 8.8% due to changes in the exchange rate. 
5. Overseas companies are subject to the laws and policies of their local geographies as well as other existing or forthcoming trade agreements. Changes in these fields will affect the share price of those companies.

A smart decision would be to hire an experienced and certified financial advisor, adept at the formalities involved, who can help you eliminate most of these burdens. Their cross-border financial planning services are also tuned to help you find the best global opportunities in line with your interests as an investor. 

Nevertheless, there are a few easy ways through which Indians and NRIs can invest in companies that are not listed on the Indian Stock Exchanges. In all these cases NRIs can use the channels in compliance with the Foreign Exchange Management Act (FEMA). 

• Buy Indian Mutual Funds or ETFs which include global equities:

There are several mutual funds and ETFs that invests in international markets. By investing in these you can indirectly invest in the foreign equities that they curate. This is one of the easiest ways to start investing in companies abroad as you are not required to open an overseas account. It is also a much more feasible option for individual traders who do not want to invest large sums.

• Open an account with a foreign broker directly:

There are international brokerage firms allow Indian citizens to set up an account and trade in overseas stocks, mutual funds and so on. The terms and conditions of the overseas trading account you open may vary between firms. 

• Open an account with Indian brokers with ties to a foreign broker:

Many full-service Indian brokers have tie-ups with foreign brokers. Using this channel it is extremely simple to open an overseas trading account with the foreign brokers that they partner with.

Becoming a global investor is an excellent way to widen the extent of your portfolio. Keeping the risks in mind, it is a market that you can exploit to invest in an array of companies that you choose.