How to Invest in US Market from India
- Many Indian investors dream about investing in the US stock market because it’s home to some of the world’s biggest and most popular companies — like Apple, Amazon, Google, Microsoft, Tesla, and more. By investing in US stocks, you can diversify your portfolio beyond Indian shares and get exposure to global brands that you use every day.
- The good news is — you don’t need to live in America to own a piece of these companies. Today, it’s easy for Indian investors to buy US stocks sitting at home. Let’s break it down step by step.
Why Invest in the US Market?
Before you start, it’s important to know why people want to invest in the US.
- Diversification: Investing in different markets reduces risk. If Indian markets are down, US stocks might still do well.
- Access to Global Brands: You can own a part of big companies that lead in tech, healthcare, electric vehicles, and more.
- Dollar Earnings: You invest in dollars, so your money is also protected if the rupee weakens against the dollar.
- Innovation: Many US companies are at the forefront of new technology and products.
So, adding a few US stocks can balance your overall portfolio.
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How Can Indians Invest in the US Market?
There are a few ways you can buy US stocks legally and easily from India:
1. Open an Account with an Indian Broker Offering US Stocks
Many Indian stock brokers now partner with US brokers. You just need to open a special account for international stocks. Examples include:
- Zerodha (via Vested)
- ICICI Direct
- HDFC Securities
- Upstox Global Investing
These platforms are beginner-friendly and show you how much you’re investing in rupees.
2. Use an International Brokerage Platform
You can also open an account directly with an international broker that accepts Indian clients. Some popular names are:
- Vested Finance
- Interactive Brokers
- INDmoney
- Stockal
These apps are simple to use, have research tools, and handle currency exchange for you.
3. Invest Through Mutual Funds or ETFs
If you don’t want to pick individual US stocks, you can invest in mutual funds or exchange-traded funds (ETFs) that invest in US markets. Many Indian AMCs offer funds like:
- Mirae Asset NYSE FANG+ ETF
- Motilal Oswal Nasdaq 100 ETF
- Edelweiss US Technology Fund
This way, you can invest in a basket of top US companies without having to buy each stock separately.
- Zerodha (via Vested)
How Much Can You Invest in US Stocks from India?
According to RBI’s Liberalised Remittance Scheme (LRS), an Indian resident can invest up to USD 250,000 per year per person in international assets — including US stocks, ETFs, or real estate abroad. This limit is more than enough for most retail investors.
Things to Keep in Mind
1. Currency Exchange Rate:
When you invest in the US, you use dollars. So, the rupee-dollar exchange rate affects your returns. If the rupee gets weaker, you may gain on currency too.2. Taxation:
- Any dividend you earn is taxed in the US first (about 25% withholding tax).
- In India, you must declare your foreign income and pay taxes on capital gains according to Indian tax laws.
Always consult a tax advisor if you’re not sure.
3. Brokerage Fees:
There might be charges for currency conversion, wire transfers, or annual account maintenance. Compare brokers to find the best deal.- Any dividend you earn is taxed in the US first (about 25% withholding tax).
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Simple Tips for Beginners
- Start Small: Begin with a small amount to understand how global investing works.
- Do Your Research: Just because it’s a US stock doesn’t mean it’s risk-free.
- Diversify: Mix large-cap, growth, and stable companies.
- Stay Long-Term: Investing globally works best when you give your money time to grow.
Grow Your Wealth Globally
Investing in the US market is no longer a dream. With the right broker, some research, and a smart plan, any Indian investor can own a piece of global giants. Always keep learning, stay updated on news, and invest money you won’t need immediately.
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