US Stocks

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? Global DiversificationInvesting in US stocks helps spread your risk geographically and sectorally. Access to Global GiantsCompanies like Amazon, Microsoft, and Tesla are leaders in innovation and not listed on Indian exchanges. Dollar-Based ReturnsInvestments in US equities benefit from potential appreciation of the US Dollar vs INR. High Innovation EconomyThe 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) PlatformTypeFeaturesVestedDirectCurated portfolios, fractional sharesINDmoneyDirect + AdvisoryFree remittance, tax trackingGrowwDirectSimple UI, easy onboardingHDFC GlobalDirect (via Stockal)Backed by HDFC SecICICI DirectDirectIntegrated 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): 20% with indexation Dividends: Taxable at slab rate, foreign tax credit available Comparison: US Stock Market vs Indian Stock Market FeatureUS MarketIndian MarketExchangesNYSE, NASDAQNSE, BSEMarket Cap (2025)~$47 Trillion~$4 TrillionCurrencyUSDINRSector DominanceTech, Biotech, Consumer DiscretionaryFinancials, Energy, IndustrialsVolatilityRelatively LowerRelatively HigherRegulatory BodySEC (Securities & Exchange Commission)SEBI (Securities & Exchange Board)Innovation ExposureVery High (FAANG, AI, SpaceTech)Moderate (Growing in Fintech, IT)Dividend YieldModerate (1.5%–2%)Lower (1%–1.5%)Ease of AccessModerate (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 TypeApprox. Gains (5 years CAGR)Currency BenefitTaxes (Net)US Direct Stocks10–12%Possible USD gainCapital Gains + Dividend TaxUS Mutual Funds9–11%IncludedIndian 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. Read More: Best Cryptocurrency to Invest in India – 2025

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