🌎 Investing in US Stocks & Mutual Funds from India – A Beginner’s Guide

Have you ever looked at companies like Apple, Amazon, Microsoft, or Google and thought, “I wish I could invest in them directly”?

Good news – you actually can, even if you’re living in India! 🌟

In today’s global economy, investing beyond borders is no longer a privilege limited to NRIs or global banks. With technology and regulatory changes, Indians can now diversify their portfolios by investing in US stocks and mutual funds directly from home.

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Let’s break it down step by step.

Why Consider Investing in US Stocks?

Global Giants – US markets host the world’s most innovative and profitable companies.
Dollar Diversification – Since investments are in USD, your money grows in a stronger currency.
Portfolio Balance – Reduces over-dependence on Indian markets.
New Sectors – Exposure to themes like AI, electric vehicles, biotech, and cloud computing.

How Can You Invest from India?

There are mainly three ways:

1. Direct US Stock Investments

Through international brokerage platforms (like Vested, INDmoney, Groww, or HDFC Securities).
You can buy even fractional shares – meaning you don’t need $3,000 to buy one Amazon share; you can start small with $50–100.
Funds are transferred under the RBI’s Liberalised Remittance Scheme (LRS) – limit of $250,000 per year per individual.

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2. Indian Mutual Funds with US Exposure

Many Indian AMCs offer International Funds / Fund of Funds that invest in US indices like S&P 500, Nasdaq 100, or in sectors like tech and healthcare.
Minimum investment can be as low as ₹500 via SIP.
Easy, convenient, and no need to handle USD remittances.

3. Exchange Traded Funds (ETFs)

Both India-listed international ETFs (like Motilal Oswal Nasdaq 100 ETF) and US-listed ETFs are available.
US-listed ETFs require a foreign brokerage account.

Tax Aspects to Keep in Mind

US Stocks: Dividends attract 25% withholding tax in the US, but capital gains are taxed in India (as per your income tax slab).
Mutual Funds (India Route): Taxation similar to equity/debt mutual funds, depending on fund type.
Double Taxation Avoidance: India has a treaty with the US, so you don’t get taxed twice on the same income.

Pros and Cons at a Glance

✅ Pros: Diversification, dollar gains, access to global leaders, sectoral growth.

❌ Cons: Currency risk, taxation complexity, and higher transaction costs in direct US investing.

FinSattva Take 💡

For beginners, starting with US-focused mutual funds/ETFs in India is the simplest and safest way.

Once comfortable, you can explore direct US stock investing to build a more global portfolio.

Remember, investing globally is not about chasing trends—it’s about building long-term wealth with balanced exposure. 🌱

👉 At FinSattva, we believe – Finance Made Simple. ✨

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How to Invest in US Stocks & Mutual Funds from India | 2025 | FinSattva