When it comes to investing, the world is your market. Just like you, countless Indian investors are exploring global markets, from the USA and Europe to Japan and beyond. If you are looking to tap into international opportunities, you are in the right place.
Investing in US stocks is a smart way to diversify your portfolio and aim for stronger returns. Though investing in US stocks provides a lucrative investment opportunity, there are certain regulatory limitations and guidelines that you need to keep in mind. But while the strategy makes sense, the process to invest in US stocks from India isn’t always as straightforward as it seems.
In this blog, you will learn about the nuances that make investing in US stocks complicated, along with the steps on how to invest in US stocks from India.
Can Indians Invest in US Stock Market?
When investors like yourself hear about companies like Apple, Google, Amazon, OpenAI and many more, there is an instinct to know more about them and invest in these companies. Just like you, countless Indian investors are exploring global markets, from the USA and Europe to Japan and beyond. Depending upon the broker, you might be allowed or restricted to invest in certain investment vehicles.
Can Indians actually realise our strategy of investing in these stocks?
The straight answer is yes, you can invest in these companies. There are two ways to invest:
- Direct investment in stocks
- Indirect investment in these stocks via Mutual funds or ETFs
Steps To Invest in US Stocks From India
You can follow the steps mentioned below to invest in US stocks from India:
Direct Investments
In India, you will find that many brokers have a tie-up with US stockbrokers. They will carry out the trades for you. However, there are some restrictions on the investments. Just like you, countless Indian investors are exploring global markets, from the USA and Europe to Japan and beyond. If you are looking to tap into international opportunities, you are in the right place. Depending upon the broker, you might be allowed or restricted to invest in certain investment vehicles.
Below are the steps on how to buy US stocks from India:
- Open an overseas trading account via an Indian broker with a global partner or a foreign brokerage platform.
- Complete KYC and documentation like PAN, Aadhaar/passport, bank statement, and other declarations.
- Fund your international brokerage account through an authorised bank under the RBI’s LRS or Liberalised Remittance Scheme.
- Select and invest in US stocks from India by placing orders for full or fractional shares on your trading platform.
- Track your investments using the broker’s dashboard and monitor your portfolio regularly.
- Handle taxes and compliance by reporting income in your ITR (Income Tax Return).
Indirect Investment
If the process feels overwhelming or you simply don’t have the time to go the DIY (Do-It-Yourself) route, this investment approach might be the right fit for you:
- Mutual Funds: Many mutual funds provide global exposure to your portfolio. You just need to find a good mutual fund that has a proven track record of performance, a lower exit load and an experienced mutual fund manager. If you are looking to tap into international opportunities, you are in the right place.
- Exchange Traded Funds: ETFs or Exchange Traded Funds are another investment vehicle that provides excellent opportunities to invest in US stocks from India. You can either purchase US ETFs or invest in Indian ETFs that track international indices.
How Much Can You Invest in the US Stocks From India?
Though investing in US stocks provides a lucrative investment opportunity, there are certain regulatory limitations and guidelines that you need to keep in mind. Just like you, countless Indian investors are exploring global markets, from the USA and Europe to Japan and beyond. Depending upon the broker, you might be allowed or restricted to invest in certain investment vehicles.
Under the LRS of the RBI, you can only invest up to $2,50,000 per financial year (April – March), i.e. approximately ₹2,13,77,296.
Final Thoughts
The opportunity to invest in US stocks from India has opened new doors for Indian investors seeking global diversification and access to world-leading companies. Though investing in US stocks provides a lucrative investment opportunity, there are certain regulatory limitations and guidelines that you need to keep in mind. If you are looking to tap into international opportunities, you are in the right place. Just like you, countless Indian investors are exploring global markets, from the USA and Europe to Japan and beyond. With simple account setup processes, supportive regulations under the Liberalised Remittance Scheme (LRS), and user-friendly platforms, it’s easier than ever to start your international investing journey.
By understanding the risks, staying informed, and aligning your goals with a clear strategy, you can confidently explore the US stock market and enhance your long-term financial growth.
