Feeling like your investment opportunities are confined to the Indian market? What if you could tap into the growth of global giants—companies listed in the US, Europe, Asia—and build a more diversified portfolio from right here in India? That’s exactly what this guide is about: how to invest in US & global stocks from India.
You’re probably wondering: “Is it too complex? What about rules, costs, tax?” I hear you. It can feel overwhelming—one mix of paperwork, foreign currency, exchange rates and unknown brokers. But once you break it down, it’s very manageable. With the right steps, you’ll move from “maybe I’ll try” to “I’m doing this with confidence”.
In this article we’ll walk through everything: what this global investing means, how the regulations work (looking at the Liberalised Remittance Scheme or “LRS” in India), how to select access routes, how to pick and monitor your investments, and how to avoid common pitfalls. By the end you should feel like you’ve got a clear map—not a maze. Ready? Let’s go.
What it means to invest in US & global stocks from India
When you hear “invest in US & global stocks from India”, think of buying shares or funds of companies listed abroad—as an Indian resident. For example: US exchanges like the S&P 500, European markets, or even Asia-Pacific stocks. The core idea: you don’t keep all your eggs in Indian baskets.
Why it matters:
- You gain access to companies/sectors that might be under-represented in India: think global tech, biotech, consumer brands. For example, one blog notes that many Indian investors are excited about owning names like Apple Inc. or NVIDIA Corporation simply because those opportunities aren’t easy domestically. INDmoney+1
- You diversify geographically, which helps if India’s market slows but global markets don’t (or bounce back sooner).
- You get some currency exposure: gains in dollars may translate into more rupees if the INR weakens (but note: this also works the other way). For instance, one article pointed out that the rupee went from around ₹45 per USD in 2010 to over ₹86 in 2025 — so if you had dollar-based assets, that shift helped your rupee returns. INDmoney
But real talk:
There’s extra complexity. You’ll deal with currency risk, foreign broker fees, international tax/regulation. While investing globally can be smart, it’s not “just buy and forget”—you still need the plan.
Understanding the regulatory landscape
The LRS limit and what it means
Under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), resident individuals can remit up to US $250,000 per financial year (April–March) for permitted purposes — including overseas investments. Borderless+1
Here’s what you must know:
- That USD 250k is total for the year. So if you remit for overseas education, gifting, plus global investing, all combine into that limit. Vested Finance+1
- You’ll have to go through your bank or authorised dealer: KYC, purpose code, PAN details.
- Each family member gets their own limit — so a couple could invest individually.
Tax & cost realities
Let’s talk money and rules so you don’t have unpleasant surprises.
- Dividends on US stocks: If you earn dividends from a US-listed company, the US may withhold tax (for non-residents) — for example, about 25%. INDmoney+1
- When you file in India, you’ll still declare that income—thanks to the India-US Double Taxation Avoidance Agreement (DTAA) you may claim credit for taxes paid in the US. Winvesta+1
- Capital gains from selling US/global stocks: Indian tax laws apply for Indian residents—even though the stock is US-listed. For example, one source says if you hold a US stock for >24 months it may qualify for “long-term” treatment. ICICI Direct+1
- Costs: currency conversion fees, foreign brokerage fees, platform commissions. These are real and impact your returns.
- Compliance: You’ll need to disclose foreign assets/investments in your ITR (Indian tax return) under relevant schedules. ClearTax
In short: the regulatory & tax side isn’t scary—but you can’t ignore it.
Step-by-Step Guide: How to Invest in US & Global Stocks from India
Step 1: Clarify your goal & set a target
Ask yourself: Why am I going global? Some common reasons:
- Gain exposure to companies not in India yet
- Hedge a bit of domestic market risk
- Use dollar-denominated assets to potentially benefit from global growth + currency shifts
Then decide: What % of your equity portfolio will go global? A practical number might be 10-30%. If you do 100% global, you might ignore what you already know in India; if you do 0%, you might miss the chance.
Step 2: Choose your access route
Basically, you have two broad paths:
Direct route:
- Open a global trading account with a broker that allows you to buy US stocks (via an Indian broker with overseas tie-ups, or a foreign broker).
- You remit via LRS, fund your account, buy stocks. E.g., see platforms and direct guides. Tata Capital+1
- Good if you like selecting stocks yourself and want full control.
Indirect route:
- Invest in India-based mutual funds or ETFs that invest globally (or in US stocks).
- Simpler: no separate foreign trading account, fewer currency decisions.
- Great if you prefer a hands-off/global-fund approach.
You could also mix both. Maybe 50% of your global allocation via fund route, 50% direct.
Step 3: Set up = real work
For direct route:
- KYC & documentation: PAN, address proof, overseas trading account paperwork.
- Link your Indian bank account for funding.
- Remit funds under LRS, noting any currency conversion fees.
- Start buying.
For indirect route:
- Pick the global fund, open/subscribe via Indian mutual fund platform.
- Understand the fund’s fee, underlying assets, currency exposure.
Step 4: Invest smart & monitor
- Diversify: At least across countries, sectors. If you pick just one US stock you love, that’s okay—but don’t all be in “one horse.”
- Mind currency: If you buy US stock and USD/INR weakens, you still can get good rupee-returns, but if rupee strengthens, you may get less.
- Think long term: Global investing often rewards patience.
- Rebalance: If your global portfolio grows too fast and becomes >30% (or whatever target you set), bring it back.
- Costs & fees: Check them often.
- Stay updated: Global markets, earnings, macro economy.
Step 5: Tax, compliance & your exit plan
- Disclose your global/international holdings in your Indian tax return (ITR).
- For dividends/gains: compute in rupees using correct exchange rate as per regulation. For example, one article noted that the conversion uses the telegraphic transfer buying rate of the last day of the month before sale. ICICI Direct
- If you incur losses, you may offset them (depending on rules) against other long/short term gains. INDmoney
- Plan how and when you’ll convert foreign currency back, if you choose to do so.
Common pitfalls & how to avoid them
Let’s talk about the typical mis-steps many make—and how you sidestep them:
- Ignoring the remittance limit: If you exceed the USD 250k annual limit under LRS, you risk regulatory complications.
- Underestimating currency risk: You buy a US stock, it doubles in USD terms—but if INR strengthens strongly you might end up with less rupee profit than expected.
- Chasing foreign “hot stocks” without doing homework: Global doesn’t equal safe. Do your research.
- Ignoring tax or filing requirements: Oops, you forgot to declare? Penalties.
- Ignoring cost structures: Forex margins, foreign broker fees — eat returns stealthily.
- Thinking global means risk-free: Global markets have crises too (currency crises, geopolitical tensions).
Example scenario: What it might look like for someone in Lucknow
Picture this: You’re based in Lucknow. You’ve been investing in Indian stocks for a while and you’ve done well, but you feel you’re missing out on global opportunities. So you decide: “Okay, of my equity portfolio, I’ll allocate 20% global.”
- You pick the direct route. You open an account with an Indian broker that lets you buy US stocks.
- You decide to remit ₹10 lakh (≈ USD 12,000) via your bank under LRS (well under the ~USD 250k limit).
- You buy 3 US stocks and 1 global ETF (so you get both individual picks and broad diversification).
- You keep your Indian portfolio going in parallel.
- You monitor: after a year the global portion has grown to 30% of your equity. You rebalance by adding more Indian equities or trimming global picks.
- Come March when you file taxes: you report your foreign holdings, declare any dividends/gains, convert using correct rate, claim any foreign tax credit.
- You hold patiently for at least 3-5 years (so time horizon is long) and treat the global portion as “growth layer” of your portfolio.
This approach keeps things balanced, realistic, and aligned with your larger goal.
Why this really matters (and why now is a good time)
We live in a globally connected economy. Many of the fastest-growing companies are not in India alone; they’re international. When you learn how to invest in US & global stocks from India, you give yourself access to global mega-trends. For example: Indian data shows the rupee dropping from ~₹45 per USD in 2010 to over ₹86 in 2025—just the currency shift alone helped boosting dollar-based returns. INDmoney
Platforms and brokerage tech have improved; you don’t need to be a Wall Street guru anymore. But “easier” doesn’t mean “easy”—smart investing still means planning, discipline, and understanding.
Final thoughts
Taking the step to invest in US & global stocks from India is smart—if done with awareness. You’re not just chasing returns, you’re building a portfolio that bridges geographies, currencies, and opportunities. Key things to remember: define your objective clearly, know your access route, be aware of costs and tax/regulation, diversify, monitor and stay patient.
If you follow the steps above—and keep your mindset long-term—you’re setting yourself up for a more global portfolio rather than a domestic “only” one. Want help picking platforms, comparing fees or choosing a few global-fund options? I’m happy to dive into that next.
