Vested: Gateway to international investing

• 3 December 2019 | 1126 Views | By Mint2Save

There are two major types of savings. One, the saving made for sake of savings (to protect the future). The other one, the saving made for investing’s (increasing net worth) sake. The latter is for the long term. When it comes to investing in companies, tenure is really long. Well, many experts earned money with short term investments by simultaneously buying and selling the company’s assets during the market. But legends like Warren Buffett who are pro in investments choose to go for investment in the long term as most of the time it is profitable. One such profitable investment avenue is international investment.

Existing investment scenario in India

13% Demat account hike has been seen over the past year. The number of people in India who are investing in the stock market is increasing. And the awareness about how investing works is increasing day by day. Losses and profits are inevitable and are a part of the game. There are some companies do not live up to the competition and go to losses which indeed affects its investors. Moreover, a few websites through which people do investments take part in the transaction. People who gained profits with investments have to pay a certain percentage of tax to the government. 

Fearful attributes of Investing Internationally

When it comes to long term investment, international investment is usually considered to be a matter of risk. It is very profitable though. Despite being so, people are worried about getting proper consultation and about the commissions for brokers. Considering the existing scenario, the market volatilities have been higher than expected.

The tax calculations on investment in companies are a bit complicated to understand. Above that, investing in foreign companies is more complicated when it comes to tax calculations. It is because of the common queries that mostly stay unanswered in our understanding. Like, how to invest in foreign companies, how to track the company performance, how much is the fee, how the money gets transferred to Indian bank accounts, how much tax for government and so on and so forth. 

Solution for securely Investing Internationally 

Vested is a platform where Indians can invest in foreign companies with ease. While many third-party sites take the commission, Vested will not charge any commission and account creation is free of cost. People can invest in US stocks and ETFs (Exchange-traded Fund) through Vested. 

Here is a quick walk through the Vested platform:

Accessible and compatible platforms:

Vested can be accessed from their official website and app which is available for both Android and IOS. Account creation can be done easily in simple steps starting with providing an email. UI is user-friendly and options provided are very much easy to use, even by non-tech savvies. 

Using Vested platform:

Upon completing the registration Vested shows the recommendations that consist of recognized companies globally and ETFs on the home page. People can track individual stocks or ETFs live from the apps. 

There is no minimum balance requirement to maintain in Vested account. You can invest any amount of money from Rs 1000 to Rs 100000. Enter the amount of money with which you want to invest and load them from your bank. They get converted to dollars and now you can invest directly in US companies stocks. 

There are no particular dates or time limits to withdraw your money and users can withdraw money anytime to their bank accounts. 

Stocks and ETF:

There are two types of people when it comes to investing. First type of people would want to invest with less risk and accepts even minimum profits. The second type of people are those who are ready to take risks and are also ready for huge profits or losses to their investments. 

If you want to go with less risk, you may want to prefer to invest in reputed and globally recognized companies. The companies like Amazon, Facebook, Verizon, Netflix, Ford and many others have been in the top for so long. They have strategies to be in the market and maintain their top positions. So when you invest in these companies and as time pass by, stock value increases and you can either sell or have dividends. 

If you want to take risks, you should invest in new companies based on their product and many other factors. The reason to mention risk is that if the company does well as per plans then it is beneficial to both investors and for the company. But if things go wrong then investors might lose money. 

Just imagine if you have invested in Apple in its early years, you would earn so much money with dividends every year. But it took few years for Apple Company to raise as a brand and it was worth a wait for investors.  

Vested provides the list of all the companies that are open to investing. You can invest in companies based on your decisions made by researching or by consulting experts. 

Investing in Exchange-traded Fund has more reach compared to investing in stocks of companies. An ETF is a combination of commodities, stocks, bonds of companies and your money is invested in a portfolio of different companies. 

Vested provides a number of ETFs like All-weather, BlackRock Smart Beta, Swenson portfolio, SaaS (Software as a service) and Digital Cash. Each ETF has a specific portfolio where they focus on investing in bonds, stocks, gold and commodities based on ETF selected. 

Security:

The user data and transaction details are secured by the usage of 256-bit encryption and SSL. Privacy of users is maintained steps are always taken to avoid unauthorized access to accounts. Features like auto-logout, secure logins and ID verification are applied to prevent malicious activities. 

The site gets automatically logged out if there is no activity after you logged in. If a person is trying to log in to the Vested account with different device, it asks for verification to make sure it is the right person to login to account. 

Investing in foreign companies through Vested platform is legal and no legality issues will occur if any Indian resident invest. It is legal as Vested Company follows LRS (Liberalized Remittance Scheme) guidelines issued by RBI. Every account that registers with this company will be insured with $500,000 by SIPC (Securities Investor Protection Corporation) officially.

So even if Vested closes or any other issues happen that affect its user base, the amount in user accounts will be refunded from the insurance. Banks like ICICI and Axis bank are official partners with Vested Company. There are two types of tax payments every user should know which are a tax on investment gains and taxes on Dividends earned. 

Taxes on investment gains refer to the tax payable on invested money. The percentage varies with the term selected for investment and is payable in India itself. Taxes on Dividends refer to tax payable on earned dividends from investments which are 25% of your dividend earnings. For more information check the official website of Vested.      

Bottom Line:

Investing in foreign companies used to be a hassle in the past years but due to platforms like Vested, the process has become easy. Moreover, we are able to invest officially without any risk of fraud. Every field is developing at a rapid pace and if you can select and invest in companies that you believe will have an impact in the future, invest through the Vested platform now.