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You can invest in Coca-Cola shares from India either by directly buying the share or through ETFs and mutual funds
The Coca-Cola Company (KO) is the world’s most valuable soft drinks brand and not without reason. Coca-Cola also has a presence in almost every country on the planet. This is possible with the help of a large and efficient distribution network that ensures its products reach its end customers in a quick and effective manner. It is also a brand that ranks high in terms of brand awareness globally. This means that customers all across the world trust the brand and are likely to choose it over others. Coca-Cola’s success has been backed by a very effective marketing strategy. Its red and white signature logo is very well known across the world and almost everybody recognizes it. The attractive shape of bottles, the brand ambassadors, and appealing ad campaigns have all contributed to the popularity of the brand.
While Coca-Cola remains the most popular brand, Coca-Cola owns other popular brands like Sprite, Fanta and Minute Maid, among others. With an increasing demand for healthy drinks, it has also focused on low-sugar and zero-sugar products like Coke-Zero, and introduced drinks like iced teas and vitamin water. All in all, Coca- Cola does not merely sell a drink in a bottle, it sells ‘happiness’ in a bottle.
How to invest in Coca-Cola from India? Here are three ways.
1. Directly invest in Coca-Cola stocks
You can invest in Coca-Cola from India by opening a US brokerage account either through technology platforms like Vested that offers this service, or a foreign brokerage that has a direct presence in India. At Vested, our goal is to allow you to invest in US stocks easily. To invest, you do not need to pay any brokerage fees. Vested’s process is completely paperless and can be completed in a matter of minutes. All you need is your PAN number, an image of your PAN card, and address proof.
To invest in US stocks like Coca-Cola, you need to wire funds to the US. As an Indian resident, you are allowed to do this under the RBI’s Liberalized Remittance Scheme which lets you remit up to US $250,000 per year, per person.
Also, Vested offers you the option of fractional investing in shares. So, you can invest in a fraction of a Coca-Cola share for as little as $1 and own a part of the company. To know more about fractional investing watch this video.
2. Invest in ETFs that hold Coca-Cola stocks
The other way you can invest in Coca-Cola stocks from India is through an ETF. ETFs refer to a collection of many stocks/bonds which are traded under one fund. They are similar to mutual funds. However, ETFs are traded on the stock exchange with real-time pricing and provide an easy and cheap way to get exposure to a sector or a group of companies. One option to invest via ETFs is that you buy an ETF on a platform like Vested.
For example, Vested lets you invest in the Consumer Staples Select Sector SPDR Fund ETF, that has Coca-Cola as one of the top holdings. The ETF has investments in companies from the following industries such as food and staples, retailing, household products, food products, and beverages, among others.
Another way to invest in Coca-Cola stocks from India is to buy ETFs available in India that invest in US indexes like the S&P 500. The Motilal Oswal S&P 500 Index Fund has Coca-Cola among its holdings. Remember, you can invest in these ETFs without opening a new US brokerage account. However, your returns might be impacted by tracking errors that these ETFs suffer from (we explain this in a video).
3. Invest in Indian mutual funds that have exposure to Coca-Cola stocks
In this case, you will be investing in funds of funds i.e. a local mutual fund that invests in a mutual fund available in the US. Note that there is no investment limit as an investment will be made in Indian rupees. Mutual funds such as the the ICICI Prudential US Bluechip Equity Fund offer exposure to Coca-Cola but often to a limited extent. Also, this approach may turn out to be more costly. You will have to pay an annual expense ratio (fees charged to manage the fund). The expense ratio of these funds tends to be higher, because apart from the general India fund management fee, it also includes an additional expense charged by the underlying international schemes they invest in.
Remember, before buying any stock, you should understand your risk profile. Investing directly in stocks like Coca-Cola would be a high-risk investment for your portfolio.
