For many Indian investors, the American stock market represents a world of opportunities with access to global giants like Apple, Google, and Amazon. But the common question remains — can I invest in US stocks from India? The answer is yes! Thanks to digital platforms and RBI’s Liberalised Remittance Scheme (LRS), investing in US stocks has become simple and fully legal for Indian residents.
Understanding the Basics
Under the Liberalised Remittance Scheme (LRS), every Indian resident can invest up to USD 250,000 per financial year in foreign assets, including stocks and ETFs. This means you can directly buy shares of companies listed on US exchanges such as NASDAQ or NYSE.
Ways to Invest in US Stocks
There are two main methods to invest in US stocks from India:
Direct Investment through International Brokers:
Several online brokerage platforms like Interactive Brokers, Vested Finance, and INDmoney allow you to open an international trading account. You can directly purchase shares or fractional shares of US-listed companies.Indirect Investment via Indian Mutual Funds or ETFs:
If you prefer a simpler route, you can invest in Indian mutual funds or ETFs that hold US stocks. These include feeder funds or global index funds tracking benchmarks like the S&P 500 or Nasdaq 100.
Steps to Start Investing
Choose a Broker: Select a platform offering US stock investments. Ensure it complies with Indian and US regulations.
Complete KYC: Submit PAN, Aadhaar, and bank details for verification.
Fund Your Account: Transfer funds abroad under the LRS framework using your bank’s international remittance facility.
Start Investing: Once funds are credited, you can buy full or fractional US stocks.
Key Benefits of Investing in US Stocks
Global Diversification: Investing abroad spreads risk across markets.
Exposure to Innovation: You gain access to tech leaders and high-growth sectors.
Currency Advantage: The US dollar’s long-term strength can enhance returns.
Things to Keep in Mind
Taxation: Capital gains from US stocks are taxable in India. Dividends are also subject to a 25% US withholding tax, but you can claim credit under the India-US Double Taxation Avoidance Agreement (DTAA).
Forex Charges: Banks may levy remittance and currency conversion fees.
Market Hours: The US market operates during night hours in India, so plan trades accordingly.
Final Thoughts
So, if you’re wondering, “Can I invest in US stocks from India?” — absolutely! With the right broker, understanding of LRS rules, and basic tax awareness, you can diversify your portfolio globally and participate in the world’s most dynamic stock market. Start small, learn the process, and let your investments grow beyond borders.