Best way to buy FAANG stocks from India


When Facebook changed their corporate name from Facebook, Inc to Meta Platforms, Inc or just Meta, it not only changes a corporate name, it changes the famous corporate acronym.

FAANG is the acronym of the stocks of big five American companies. It includes Facebook, now Meta, Amazon, Apple, Netflix, Google, now Alphabet. It was coined in 2013 by television host Jim Cramer.

In 2017 Apple became the second ‘A’ in the acronym. These five stocks are widely known among consumers and are the largest companies. As of 29 August 2020, their combined market capitalization value is nearly $7.1 trillion.

When high profile investors like Renaissance Technologies, Soros Fund Management and Berkshire Hathaway purchased their shares and added them to their portfolios, their values shot up.

Because of their strength and growth, they are a favourite stock for many investors.

Each of them is listed in the Nasdaq exchange and S&P 500 Index. They make up 19% of the S&P 500 Index. This itself shows how integral they are part of the US market and economy.

In February 2018, for example, their good performance was responsible for the index to gain by 40%.

These big tech companies are so huge and so highly valued, some people express the concern that if it is a bubble. The low performance in November 2018, has raised concern about the stocks and the fallout on the economy if it falls.

But on the other side, there is quite a number who believe in its fundamental strength. Being major brands, they have a good consumer base, giving them a steady income measuring in billions.

In 2020 they are the only companies who not only survived unscathed, even grew and increased their profit manifold. Apple became a $2 trillion worth company in 2020, which is evidence of its strong performance.

Critics argue that their performance might have led to the overvaluation and their high price could question the long profit from it. They are also easy to acquire as their publicly traded companies and are often included in ETFs.

Through international brokerage platforms, one can buy FAANG stock in India. Not only FAANG but any stock listed in any indices can be brought the same way.

If not affordable, one can use the scope of Fractional Ownership to buy it, by splitting the cost to many while reducing it to an affordable price. You can start investing with ₹5,000. Such diverse stocks in different regions will enrich your investment portfolio.

One such prominent international brokerage platform in India is Invesco, which in India goes by the index Invesco QQQ ETF. Being an ETF that tracks Nasdaq-100 Index, which has its Ticker symbol, you are being exposed to the global economy.

For those who want to track the S & P 500 Index, they can use SPDR S&P 500 ETF or SPY ETF.

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