Investing in global stocks not only gives individuals diversification but also allows them to participate in the growth story of the stocks. One can easily invest in global stocks all from the comfort of home or office.

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Here’s a look at different aspects of investing in global stocks from India:

What should investors consider before investing in global stocks?

According to Viraj Nanda, CEO at Globalise, apart from portfolio planning, time horizon, and asset allocation perspective, investors should focus on fundamental analysis of stocks they may be considering.

"This would include knowing the industry, competitive positioning of the company, its profitability trajectory, the strength of the balance sheet, and quality of management. This would require comprehensive due diligence on part of the investors," Nanda suggests.

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An alternative way to build a global exposure would be through the Exchange-Traded Fund (ETF) route. There are a variety of ETFs available which provide an easy route for investors to build exposure to different geographies, sectors, and asset classes.

How is this type of investment taxed?

Capital gains tax applies to any profits made on sales of investments. However, as Nanda explains, for Indian investors buying stocks or ETFs listed in the US stocks, there is no capital gains tax levied in the US.

"The investor is only liable to pay capital gains tax in India, where long-term capital gains tax applies to any profits from the sale of assets held for more than 24 months. If the investors held the investment for less than 24 months, they will have to pay short-term capital gains tax," Nanda elaborates.

Interest income and dividend income are taxed at the normal rate of tax.

“There is a 25 percent TDS on the dividend earnings. This TDS can be claimed as a credit against the income when filing taxes in India. Due to the Double Taxation Avoidance Agreement (DTAA) between the US and India, you will not be taxed twice on the same income," Nanda further tells.

What kind of charges are associated with this kind of investment?

The charges could include account opening fees, brokerage expenses, and annual subscription costs as per pricing plans that investors may subscribe to.

Besides that, Nanda says, banks in India might charge fees for transferring money from India into the US brokerage account. There may be fees that overseas broking partners may charge for extra services, such as international wire transfer and paper confirmations that investors should be aware of.

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Is it the right time to invest in global stocks?

According to Nanda, investors should allocate to equities strategically based on their financial goals and risk appetite, with a long-term wealth creation perspective.

In that regard, investing in any equity markets warrants a disciplined, long-term approach and one should not look to time the market at all. Instead of looking for entry points in the market, one should focus on portfolio planning to arrive at a meaningful allocation to global equities. Depending upon individual financial goals, our research shows that global equity allocation of 20-50 percent of the overall equity portfolio enables diversification and risk/return optimisation benefits.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

(Edited by : Jomy)