FAANG stocks investment in India

FAANG refers to the five most prominent tech giants: Facebook, Amazon, Apple, Netflix and Google (Alphabet). It is hard to talk about the US stock market without mentioning the “FAANG” stocks. They make up a sizable portion of the S&P 500. The heavy weighting of these stocks on US indices like the S&P 500 and Nasdaq helps them outperform the broader market.

What are FAANG stocks? 

FAANG is an acronym used to describe the tech giant stocks of the US. Earlier, the acronym was FANG – Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Alphabet {Google} (NASDAQ: GOOGL). They were known as internet-based companies but then, later in 2017, after the inclusion of Apple (NASDAQ: AAPL) made they technology stocks.

  • Facebook (Meta) – Meta is the parent organization that owns the social media applications – Instagram and Facebook and the messaging applications – WhatsApp and Messenger. It earns revenue from displaying ads while users browse through posts and videos. It has 2.85 billion monthly active users.
  • Amazon – It is the world’s largest e-commerce company. Globally, it has more than 200 million Prime subscribers that are loyal to the company. Cloud computing services and advertising forms a large part of their profits.
  • Apple – It is the largest smartphone manufacturer in the world. Smartphone sales, higher subscription margins for streaming music and gaming, cloud storage and news are the sources of revenue.
  • Netflix – It is one of the largest film buyers and television productions across the globe. It invests in original content for its streaming services against a monthly subscription.
  • Google (Alphabet) – Alphabet is a tech conglomerate and parent organization of Google. Google is an internet-search company with a billion-user base. It is a growing cloud computing business. However, the hardware business is small.FAANG - Facebook

    Understanding the FAANG stocks 

    FAANG are the largest companies in the world, with a combined market capitalization of $7.1 trillion as of Aug. 19, 2021. Their stellar performance and exceptional operational performance in the past few months justify their growth.


    (IN USD)
    FACEBOOK 10.42 B 29.01 B 900.09 B 323.57 23.13
    AMAZON 7.70 B 113.08 B 1.71 T 3372.41 58.77
    APPLE 24.13 B 81.43 B 2.48 T 149.8 29.34
    NETFLIX 1.76 B 7.48 B 305.77 B 690.31 62.22
    GOOGLE 19.36 B 61.88 B 1.98 T 2960.92 28.52

    FAANG - Google


    Are US tech stocks a good investment?

    The past results do not ensure success but, FAANG stocks have a competitive advantage and provide good returns from a long-term perspective.

    • Facebook, Google and Amazon benefit from their billion user bases. They earn enormous profits from advertisements on various platforms like YouTube, Facebook, Amazon prime, etc.
    • Netflix allows users to share feedback from where they understand the customer’s preferences. In addition, its move to the original content and exclusive licenses makes the content uncopiable.
    • Apple company produces both hardware as well as software devices. Importantly, the lock-in effect of Apple builds up switching costs from iOS. It develops services like Apple Music and Apple Arcade.


    FB* 801%*
    AMZN 5500%
    AAPL 5310%
    NFLX 10390%
    GOOGL 1400%
    S&P 500 663%
    (FB SINCE 2012)*

    How to buy US shares in India 

    US tech stocks, FAANG stocks, have instilled an interest in Indian investors because these stocks provide opportunities beyond the domestic markets.

    With the growing interest in US stocks, various investing companies are providing integrated platforms for domestic and global securities.

    It allows one to invest in ETFs and stocks listed in US stock markets like Nasdaq and S&P 500.

    For instance, Stockal, a Bengaluru-based company registered in New York, has created a platform that helps Indians invest in companies in the US markets.

    Stockal’s owners decided to draw on Liberalized Remittance Scheme (LRS), which allows individuals to send $250,000 every year to foreign countries. The scheme is used most for international travel or college fees. One can use it for investing in shares of foreign companies, but few do so because it is complicated.

    The investing platform had tied up with Indian digital stock broking, mutual fund companies and others that provide the same service.

    Scripbox, a digital wealth management company in Bengaluru, is already providing US equity mutual funds. It has partnered with Stockal to allow investors to make direct investments in US stock markets. Therefore, it helps investors to invest in US-listed stocks as well as US ETFs.

    Further, Emkay Global services also partnered with Stockal to allow its clients to invest in US securities.

    Global mutual funds help the investors get exposure to foreign because it invests in the equity, mutual funds and debt securities of companies listed outside India.

    FAANG stocks are the ones that rarely show a downfall and are tempting to those who want to diversify their portfolio.Apple

    Procedure to buy US stocks

    To invest in foreign stocks, firstly, one needs to open a trading account with an international brokerage firm. Secondly, on completion with the KYC formalities, including RBI’s LSR, one can start investing in US stocks.

    Now, investing in US stocks is denominated in dollars. But the good news is: Fractional ownership is allowed, where the cost of the security with its benefit is distributed among shareholders. So, one can invest a minimum amount of Rs 100 in US stocks, and the shares will get calculated by themselves.

    Another way to invest in US stocks is investing with a fixed sum at regular intervals. Netflix


    Hence, US stock market provides opportunities to investors to own global blue-chips like the FAANG stocks and get the advantages over the long-term. In the beginning, keep tracking the opportunities, and buy the stocks during corrections or dips.