SpaceX shares have experienced remarkable momentum, jumping over 40% in just two days of trading. According to reports from The Financial Express, on June 12, SpaceX shares opened at $150 against the IPO offer price of $135 and closed at $161, representing a 19% gain on the first day of trade. On Monday, June 15, the second day of trade for Elon Musk's 2.54 trillion dollar market-cap company, the share price jumped 19.6% to close at $192.50. In just two trading days, SpaceX's stock price has rallied 42.5% from the IPO price and over 28% from the day one open price.
For Indian investors, fractional investing provides an accessible pathway to participate in SpaceX ownership. As reported by The Financial Express, at an exchange rate of around ₹94, Indians looking to buy 1 share of SpaceX at a price of nearly $200 would need to invest ₹19,000. However, US stock market rules allow fractional ownership, enabling investors to own portions of any US stock including SpaceX with as little as ₹5,000. The US Securities and Exchange Commission permits fractional ownership of equities, making major companies in the S&P 500 or Nasdaq 100 accessible for as little as ₹500.
Fractional investing offers several advantages for Indian investors. According to The Financial Express, dollar cost averaging (DCA) functions similarly to a Systematic Investment Plan (SIP) in mutual funds, allowing investors to purchase more shares during periods of low prices than during high prices. The process involves opening a foreign trading account with an international brokerage firm after completing KYC and complying with RBI's LRS rules. Investors can create long-term portfolios of US companies within budget constraints, with fractional investing making even the most expensive US stocks accessible at a few thousand rupees.
Despite the strong performance, significant risks exist for SpaceX stock in the near term. As reported by The Financial Express, volatility could be substantial with options trading starting from June 17. Additionally, once the lock-in period ends for institutional and other investors, a potential sell-off in the stock price could occur. These factors highlight the importance of careful consideration before investing in fractional shares of SpaceX or any other US-listed securities.
