How to Invest in US Stocks from India?

Investing in international markets is no longer a luxury limited to NRIs or global firms. Indian investors now have seamless access to US equities, including giants like Apple, Google, Microsoft, and Tesla. This guide covers how to invest in US stocks from India, the benefits, risks, tax implications, platforms, and a comparison with the Indian stock market.

Why Invest in US Stocks?

1. Global Diversification
   
   Investing in US stocks helps spread your risk geographically and sectorally.
2. Access to Global Giants
   Companies like Amazon, Microsoft, and Tesla are leaders in innovation and not listed on Indian exchanges.
3. Dollar-Based Returns
   Investments in US equities benefit from potential appreciation of the US Dollar vs INR.
4. High Innovation Economy
   The US market has higher exposure to technology, biotech, and innovation-driven sectors.

How Can Indians Invest in US Stocks?

There are two primary routes:

1. Direct Investment via LRS (Liberalized Remittance Scheme)

Under RBI’s LRS, resident Indians can remit up to USD 250,000 per financial year for investing abroad.

Steps:

• Open a foreign trading account with a registered broker (e.g., Vested, INDmoney, Stockal, Groww, HDFC Securities – Global Investing)
• Complete KYC and LRS documentation (PAN, Aadhaar, Bank A/c, Form A2, etc.)
• Transfer funds in USD via your bank (foreign outward remittance)
• Buy US stocks or ETFs directly

Key Features:

• Own real shares (fractional ownership allowed)
• Access to NYSE, NASDAQ
• Long-term holding allowed

2. Indirect Investment via Mutual Funds or ETFs

If you prefer simpler domestic options:

(a) International Mutual Funds

• Fund of funds investing in US stocks (e.g., Motilal Oswal Nasdaq 100 FOF)
• INR-based investment
• Managed by Indian fund houses

(b) Indian ETFs with US Exposure

• Traded on NSE/BSE
• Example: Nippon India Nasdaq 100 ETF

Benefits:

• No need for LRS paperwork
• Taxed as per Indian mutual fund norms
• Lower cost & complexity

Top Platforms to Invest in US Stocks from India (2025)

Platform	Type	Features
Vested	Direct	Curated portfolios, fractional shares
INDmoney	Direct + Advisory	Free remittance, tax tracking
Groww	Direct	Simple UI, easy onboarding
HDFC Global	Direct (via Stockal)	Backed by HDFC Sec
ICICI Direct	Direct	Integrated account, support

Tax Implications

In the US:

• No capital gains tax for Indian investors
• Dividend withholding tax: 25% (can claim credit in India under DTAA)

In India:

• Capital Gains (as per Indian IT Act):
  • Short-term (<24 months): Taxed at slab rate
  • Long-term (>24 months): 20% with indexation
• Dividends: Taxable at slab rate, foreign tax credit available

Comparison: US Stock Market vs Indian Stock Market

Feature	US Market	Indian Market
Exchanges	NYSE, NASDAQ	NSE, BSE
Market Cap (2025)	~$47 Trillion	~$4 Trillion
Currency	USD	INR
Sector Dominance	Tech, Biotech, Consumer Discretionary	Financials, Energy, Industrials
Volatility	Relatively Lower	Relatively Higher
Regulatory Body	SEC (Securities & Exchange Commission)	SEBI (Securities & Exchange Board)
Innovation Exposure	Very High (FAANG, AI, SpaceTech)	Moderate (Growing in Fintech, IT)
Dividend Yield	Moderate (1.5%–2%)	Lower (1%–1.5%)
Ease of Access	Moderate (Needs LRS, forex transfer)	High (Domestic account)

Risks to Consider

• Currency Risk: INR appreciation may reduce USD gains.
• Regulatory Risk: Changes in LRS norms or taxation.
• Platform Dependency: Limited platforms offer full service.
• Market Volatility: Tech-heavy exposure may lead to sharper corrections.

Example: Investing ₹1,00,000 in US Stocks

Investment Type	Approx. Gains (5 years CAGR)	Currency Benefit	Taxes (Net)
US Direct Stocks	10–12%	Possible USD gain	Capital Gains + Dividend Tax
US Mutual Funds	9–11%	Included	Indian Mutual Fund Taxation

Pro Tips

• Start with Mutual Funds or ETFs if you are a beginner.
• Use fractional investing to buy high-value stocks like Amazon or Google.
• Track LRS limit usage and file tax returns correctly.
• Invest systematically over time to reduce timing risk.

Final Thoughts

Investing in the US stock market is an excellent way to diversify and grow wealth globally. With regulatory frameworks like LRS, platforms tailored for Indian investors, and favorable tax treaties, global investing is now practical and powerful. However, it’s important to start small, understand the rules, and align investments with your goals.

Whether you seek the innovation-led boom of Silicon Valley or want to hedge your INR portfolio, the US stock market is an avenue worth exploring — smartly and responsibly.

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