India has one of the world's largest and fastest growing economies, with a burgeoning tech sector.
But how can investors in Australia get exposure to the Indian stock market?
If you're a non-resident Indian (NRI) living in Australia, you'll have a few options.
If you're not, it's still possible to invest.
According to our analysis of 40 Australian share trading platforms, only Interactive Brokers offers investors the ability to trade the National Stock Exchange of India (NSE) directly.1
However, it's still relatively easy to get exposure to the Indian stock market via exchange-traded funds (ETFs) that track the performance of certain Indian companies and stocks but are traded on other international markets, including Australia.
The simplest way to invest in the Indian stock market from Australia is by buying an ASX-traded ETF:
There are 3 major Australian ETFs that track the performance of the Indian stock market:
The IIND ETF tracks top Indian companies based on BetaShares' quality score, with a focus on financial services, consumer and information technology companies, including Infosys, Tata Consultancy Services and Axis bank.2
The NDIA ETF tracks the performance of 50 of the largest companies on the Indian stock market, which make up the Nifty 50 index.3
The FIIN ETF the performance of 40-60 diversified Indian stocks with a focus on quality companies with scalable business models. This includes banks like ICICI Bank and HDFC Bank, as well as information technology companies like Infosys.4
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
The Nifty 50 is a benchmark stock market index that tracks the performance of 50 of the largest companies on the NSE by weighted average. It is owned and managed by NSE Indices and was founded in 1996.5
There are a number of Nifty 50 ETFs that trade on the NSE in India, including the ICICI Prudential Nifty 50 ETF, HDFC Nifty 50 ETF and the Nippon India ETF Nifty 50 BeES.
You can invest in the Nifty 50 via globally-traded ETFs that track the performance of the Nifty 50 index, including:
The MSCI India Index is a stock index that tracks the performance of large and mid cap companies on the NSE. It currently includes 146 constituents, representing around 85% of the total Indian equities market.6
The easiest way to invest in the MSCI index is via the iShares MSCI India ETF (BATS: INDA), which trades on the BATS Global Markets exchange.
Non-resident Indians living in Australia can invest directly in Indian stocks by following these steps:
How to invest in Indian mutual funds:
How to invest in Indian stocks:
CHESS sponsorship allows you to directly own ASX listed shares in your own name, but it comes with some drawbacks. Find out if it's right for you.
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