The pandemic changed the way we live and also the way we invest. Investors in the age bracket of 30-40 years have not just entered D-Street but have also shown keen interest on global diversification.
All major brokerage firms made it feasible for investors in India to invest in global markets like the US with ease. There are also several independent platforms offering similar service at affordable rates.
The trend has only started and it is likely to pick up pace in the coming years, suggest experts. FAANG, an acronym for Facebook, Amazon, Apple, Netflix and Alphabet (formerly known as Google), remained on investors’ radar in FY21. Tesla was also on the list of stocks that attracted attention.
In FY22, there are many more companies that might dominate.
FAANG (T) will continue getting attention because of their scale and scope of products and services, but one has to be selective. T in FAANG (T) stands for Tesla.
Experts Moneycontrol spoke to highlighted other companies which are or may become popular among Indian investors in the near future.
“Besides the usual suspects, i.e., Apple, Amazon, Alphabet and Facebook, our clients have some lesser-known stocks, such as Fossil, Gap, Yelp, Qualcomm, Bed Bath and Beyond as they are part of the Omni Supreme or Omni AIoT,” Dr Vikas V Gupta, CEO & Chief Investment Strategist, OmniScience Capital, told Moneycontrol.
“We also had GameStop in our US Supreme for more than a year. Of course, no one was familiar with that name in India before the stock shot up in January. We used the opportunity to exit our position since it had taken several multiples beyond its intrinsic value,” he said.
Global investing is a trend that has clearly picked up in the last year. The concept took off as many discount brokerage firms facilitated the investment process, and there is greater awareness among investors over the last several years about the strong performance of the US equity markets.
Many large technology companies listed in the US are household names for the average Indian investor now, and this awareness is now extending to niche segments and thematic investments, suggest experts.
“With respect to investing in the US, obviously some stocks, like Tesla and the FAANG, enjoy a strong ‘recall factor’, but we have also noticed on our platform that among the top-traded stocks are some of the lesser known but interesting names like Concentrix Corp, Beyond Meat Inc, Molsen Coors Brewing Company, Salesforce, Lemonade Inc and Opendoor Technologies, among others,” Viraj Nanda, CEO of Globalise, told Moneycontrol.
“Currently, we are witnessing a new wave of interest in more cutting-edge investment themes, like crypto assets, SPACs, disruptive technology (within the broad tech spectrum), and that is throwing up a host of new names that are very agile, nimble next-gen companies,” he said.
While FAANG(T) will continue to attract interest, many firms are witnessing increasing interest in a variety of stocks, especially IPOs.
“People want to invest in newly listed IPO companies, people follow thematic investing - for instance, NIO has also been a popular stock in the electric vehicle (EV) space. People are also showing wider interest in gaming, data and analytics and pharma,” Sitashwa Srivastava, Co-founder & Co-CEO, Stockal Inc, told Moneycontrol.
“So Gamestop, Palantir, NIO, and Pfizer can be added to the list, replacing Paypal, Etsy, eBay and Snapchat,” he said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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