How to Buy Coca-Cola Shares in India?

The iconic beverage giant, Coca-Cola, has been quenching thirst worldwide for over a century. Beyond its refreshing taste, owning a piece of this global phenomenon can be an exciting investment opportunity.

But how can you do this? While Coca-Cola doesn’t have a direct listing on Indian exchanges, there are multiple avenues to invest in its shares. This guide will walk you through buying Coca-Cola shares from India through platforms such as Appreciate. Read along!

Understanding Coca-Cola Shares

As a publicly traded company, Coca-Cola offers investors the opportunity to benefit from its global presence, diverse product portfolio, and long-standing market position. Here is a more detailed explanation:

Overview of Coca-Cola as a Company

Coca-Cola, founded in the late 19th century, has grown from a patent medicine to a global beverage giant. The company’s signature product, Coca-Cola, is sold in over 200 countries, with consumers drinking more than 1.8 billion servings daily.

Also, ranked 94th in the 2024 Fortune 500 list, Coca-Cola boasts the world’s sixth most valuable brand. The company’s success stems from its secret formula, extensive product range, and global distribution network.

Why Invest in Coca-Cola Shares?

Investing in Coca-Cola shares can be an excellent option for investors wanting to add a well-established, global brand to their portfolio. This is major because of the company’s long history, strong market presence, and financial stability. Let’s explore some more key reasons why Coca-Cola shares might be worth considering:

Strong Brand and Market Position

Coca-Cola’s iconic status in the beverage industry is undeniable – its products are sold in over 200 countries, giving it a truly global reach. This strong market position provides a competitive edge, allowing Coca-Cola to maintain its market share even in challenging economic conditions.

Consistent Dividend Payments

Coca-Cola has increased its dividend for over 60 consecutive years, becoming a “Dividend King.” This consistent payout demonstrates the company’s commitment to returning value to shareholders and can provide a steady revenue stream for investors, particularly those looking for long-term, stable returns.

Growth Prospects

Coca-Cola has been diversifying its product portfolio beyond carbonated drinks, venturing into categories like plant-based beverages, coffee, and even alcoholic beverages in some markets. This expansion strategy aims to capture changing consumer preferences and tap into new market segments.

Step-by-Step Guide to Buying Coca-Cola Shares

To buy Coca-Cola shares from India, simply sign up for an international trading account using the Appreciate App. Your account will be activated after KYC verification. Then, you can add funds and begin buying whole or fractional shares of Coca-Cola from India with low transaction fees and advanced security.

Here’s the step-by-step process:

Step 1: Open an Account with Appreciate

1. Get the Appreciate app from the Google Play Store.
2. Provide your basic personal information and set up your login credentials to register.
3. Submit the required documents, such as your PAN card and proof of address, for KYC (Know Your Customer) compliance.

Step 2: Fund Your Account

1. Go to the “Funds Transfer” section and select “Add Funds.”
2. Pick your payment method (UPI, net banking, or debit card).
3. Enter the amount and complete the transaction.

Appreciate makes sending money to your US investment account easy with one-click transfers. You can also invest in top US stocks and ETFs with as little as ₹1 through fractional investing.

Step 3: Search for Coca-Cola Shares (KO)

1. At the top of the app’s home screen, use the search bar and type “Coca-Cola Co” or “KO.”
2. Choose “Coca-Cola Co (KO)” from the search results to view the stock details.

The app provides a user-friendly interface for finding and researching stocks like Coca-Cola. It offers current stock prices, market capitalisation, historical charts, financial data, and the latest news and insights.

Step 4: Buy Coca-Cola Shares

To buy Coca-Cola (KO) shares through the app:

1. Tap on the “Buy” button on the KO stock page.
2. Enter the amount you wish to invest or the number of shares you want to purchase.
3. Review the order details, including the price, quantity, and total cost.
4. Confirm the transaction by tapping on the “Place Order” button.

Step 5: Monitor Your Investment

After your order is executed, it’s important to keep track of your investment. Regular monitoring helps you make informed decisions about holding, buying more or selling your shares.

Appreciate provides tools for real-time monitoring of your Coca-Cola shares – it offers customisable alerts for price changes, dividend announcements, and other important events. The platform also provides regular market updates and analysis to help you stay informed about factors that might affect your investment.

Other Ways to Buy Coca-Cola Shares in India

Other Ways to Invest in US Stocks like Coca-Cola

Exchange-traded funds (ETFs)

If you want to benefit from Coca-Cola’s performance without buying its shares directly, investing in ETFs that include Coca-Cola stocks is a simple option. ETFs, or Exchange-Traded Funds, hold a mix of different stocks. This way, you can invest in Coca-Cola and other companies, spreading your risk while still enjoying the stock’s growth. You can buy any of these ETFs through the Appreciate App.

Here are a few ETFs that have Coca-Cola stock:

• Consumer Staples Select Sector SPDR Fund
• First Trust Nasdaq Food & Beverage ETF
• Fidelity MSCI Consumer Staples Index ETF
• Vanguard Consumer Staples ETF

Indian and US Mutual Funds

You can invest in Coca-Cola through Indian and US mutual funds that hold the company’s stock. Here are a few examples:

• Motilal Oswal S&P 500 Index Fund (this is an Indian Mutual Fund)
• Vanguard Total Stock Market Index Fund Admiral Shares
• Vanguard 500 Index Fund Admiral Shares
• Fidelity 500 Index Fund

Tax Implications for Indian Investors

Investing in Coca-Cola shares from India isn’t just about picking the right stock; it’s also about understanding the tax implications. So, let’s break down the key tax considerations for Indian investors venturing into US stocks, specifically Coca-Cola shares.

Tax on Dividends

When you receive dividends from Coca-Cola, the US government takes a share first – they withhold 25% of your dividend as tax at the source. But, thanks to the tax treaty between India and the US, you can use this 25% as a foreign tax credit to reduce your Indian tax liability.

Capital Gains Tax

Selling your Coca-Cola shares at a profit? That’s when capital gains tax comes into play. The good news is you’ll only pay this tax in India, not the US. How much you pay depends on how long you’ve held the shares:

• Hold for over 24 months? You’ll face a 20% long-term capital gains tax.
• Sell earlier – short-term gains? Your profit gets added to your regular income and taxed at your normal rate. This could result in a higher tax rate, especially if you’re in a higher income bracket.

Double Taxation Avoidance Agreement (DTAA)

The DTAA between India and the US ensures you don’t pay tax on the same income in both countries. You’ll only pay tax in India for capital gains on US stocks. This simplifies your tax calculations and prevents the headache of dealing with two different tax systems.

Risks and Considerations

Investing in Coca-Cola shares in India can be an enticing prospect, given the company’s global brand power and India’s growing consumer market. However, like any international investment, it comes with its own set of challenges, including:

Currency Risk

When you buy Coca-Cola shares in India, you deal with two currencies – Indian Rupees (INR) and US Dollars (USD). The exchange rate for these currencies can fluctuate, affecting your investment’s value. For example, if the INR weakens against the USD, your returns in dollar terms might decrease, even if the stock price rises in rupees.

Regulatory and Compliance Risks

The government often tweaks foreign investment, taxation, and business operations rules. These changes can impact Coca-Cola’s operations and, in turn, its stock performance. For instance, stricter regulations on sugar content in beverages or new environmental norms could force the company to alter its products or production processes, potentially affecting its bottom line.

Market Volatility

The Indian stock market is prone to sharp swings based on economic data, political events, or global market trends. This volatility can lead to major changes in Coca-Cola’s share price, testing your nerves as an investor. While volatility can offer profit opportunities, it also increases the risk of short-term losses. 

Conclusion

Investing in Coca-Cola shares offers Indian investors a unique opportunity to own a piece of a global brand with a strong market position and consistent performance. However, it’s crucial to remember that international investing comes with risks and considerations, including currency fluctuations and regulatory differences. As you consider adding Coca-Cola or other US stocks to your investment strategy, research thoroughly, understand the tax implications, and align your choices with your overall financial goals.

FAQs

How to buy Coca-Cola shares in India?

Appreciate Wealth offers a simple and easy way to buy Coca-Cola shares in India. With real-time access to the US stock market, you can react swiftly to market changes during US trading hours directly from your smartphone, taking advantage of features like fractional shares and seamless INR to USD conversions.

What is the current Coca-Cola share price?

The current share price of Coca-Cola is 65.18 USD.

How do I choose a brokerage platform for buying international shares?

Choosing a brokerage platform for international shares involves evaluating transaction fees, ease of use, and available features like real-time market access and educational resources.

Are there any tax implications for investing in Coca-Cola shares?

If you profit from your Coca-Cola investments, you will need to pay taxes in India. Long-term capital gains are taxed at 20%, whereas short-term gains are taxed as per your income tax slab.

What are the risks of investing in international stocks like Coca-Cola?

Investing in international stocks like Coca-Cola involves currency risk, as fluctuations in exchange rates can impact your returns. Additionally, political and economic instability in the company’s home country can affect stock performance.