Investing in the U.S. stock market from India is now easier than ever. If you want to buy shares of Apple, Google, or Amazon, you can do it.
Why Invest in the U.S. Market?
1. Global Growth – Several Large companies belons to U.S like Microsoft, Tesla, and Facebook which dominate the world. Investing in these companies is dream for many outsiders.
2. Diversification– Instead of only investing in Indian stocks, adding U.S. stocks balances your portfolio.
3. Stable Economy – The U.S. has the world’s largest economy, which is less volatile than emerging markets.
4. Dollar Returns – If the U.S. dollar strengthens against the Indian rupee, your returns will increase. And this is a reason Indian are exploring more to diversify in Overseas market.
Example:
Imagine you invested ₹1 lakh in the NASDAQ 100 index five years ago. The index grew by about 23% per year. Your money would have grown to ₹2.82 lakhs today. If the rupee weakened against the dollar, your profits would be even higher!
How to Invest in the U.S. Market
You can Enter in US market by this Steps:
1. Direct Investment in U.S. Stocks
You can buy shares of companies like Google and Tesla directly from Indian Brokers.Some Indian brokers offer this service.
| Broker | U.S. Partner | Account Opening Fee | Brokerage | Other Charges |
|---|---|---|---|---|
| Zerodha | Vested | ₹0 | Commission-Free | Forex Fees Apply |
| ICICI Direct | Interactive Brokers | ₹0 | ₹0.99 per trade | Forex Fees Apply |
| HDFC Securities | Stockal | ₹0 | ₹0.99 per trade | Forex Fees Apply |
| Upstox | Vested | ₹0 | Commission-Free | Forex Fees Apply |
| 5Paisa | Vested | ₹0 | $2.5 per trade | Forex Fees Apply |
| Groww | DriveWealth | ₹0 | Commission-Free | Forex Fees Apply |
Foreign Brokers Accepting Indian Investors
If you want to invest directly without an Indian broker, you can use these U.S.-based platforms:
| Broker | Minimum Deposit | Commission | Features |
|---|---|---|---|
| Interactive Brokers | $0 (No Minimum) | $0.35 per share | Advanced trading, Margin Trading |
| Charles Schwab | $0 (No Minimum) | $0 | Long-term investing |
| TD Ameritrade | $0 (No Minimum) | $0 | Commission-Free ETFs |
| E*TRADE | $0 (No Minimum) | $0 | Great for beginners |
Key Things to Consider Before Investing
✅ Currency Exchange Rates – Since you invest in USD, Rupee depreciation can impact your returns.
✅ Forex Charges & Taxes – Banks charge forex conversion fees (₹1000+ per transfer), and there’s a 20% TCS (Tax Collected at Source) on remittances above ₹7 lakh in a financial year.
✅ Stock Market Timings – U.S. market hours are 7:00 PM to 1:30 AM IST (Winter) and 6:30 PM to 1:00 AM IST (Summer).
✅ Dividend Taxation – U.S. deducts 25% tax on dividends, but you can claim tax benefits under the India-U.S. Double Taxation Avoidance Agreement (DTAA).
Liberalized Remittance Scheme (LRS)
The Liberalized Remittance Scheme (LRS) is a policy by the Reserve Bank of India (RBI) that allows Indian residents to remit (send) up to $250,000 (around ₹2.07 crore) per financial year for permissible transactions, including investments in foreign stocks, ETFs, bonds, real estate, and more.
Who Can Use LRS?
✅ Resident Individuals (Indians) – Any Indian citizen with a valid PAN card.
❌ Not Allowed for Corporations, Partnerships, or HUFs – Only individuals can use LRS.
What Can You Do with LRS? (Permitted Transactions)
Under LRS, you can remit money abroad for:
✅ Investing in Foreign Stocks & ETFs – Buy shares of U.S. companies like Apple, Tesla, Amazon, or index funds.
✅ Buying Foreign Real Estate – Purchase property abroad.
✅ Deposits in Foreign Bank Accounts – Open savings or investment accounts.
✅ Foreign Education – Pay tuition fees for studying abroad.
✅ Medical Treatment Abroad – Cover hospital bills outside India.
✅ Travel & Personal Expenses – Spend on international vacations.
✅ Gift or Donation – Send money as a gift or donation to foreign individuals or organizations.
What is NOT Allowed Under LRS? (Prohibited Transactions)
🚫 Trading in Foreign Derivatives & Crypto – No investing in margin trading, futures, or cryptocurrency.
🚫 Gambling & Betting – No sending money for lottery, casinos, or betting sites.
🚫 Speculative Foreign Investments – No trading in leveraged foreign instruments.
Charges & Taxes on LRS Transfers
Bank Charges
- Forex Conversion Fee: ₹1,000+ per transfer (varies by bank).
- GST: 18% on forex charges.
Tax Collected at Source (TCS) on LRS
| Annual Remittance | TCS (Tax Collected at Source) |
|---|---|
| Up to ₹7 lakh | 0% (No TCS) |
| Above ₹7 lakh (Investment in Stocks/ETFs) | 20% TCS (Refundable at ITR filing) |
| Above ₹7 lakh (Education Loan Remittance) | 5% TCS |
Example: If you send ₹10 lakh abroad for investing in U.S. stocks, 20% TCS = ₹60,000 will be deducted upfront. You can claim it back when filing ITR.
2. U.S.-Focused ETFs in India
| ETF Name | Ticker | Index Tracked | Expense Ratio | 1-Year Return | 5-Year Return | AUM (₹ Cr) |
|---|---|---|---|---|---|---|
| Motilal Oswal NASDAQ 100 ETF | N100 | NASDAQ-100 | 0.58% | 20.31% | 23.01% | 9,174 |
| Mirae Asset NYSE FANG+ ETF | MAFANG | NYSE FANG+ Index | 0.33% | Not Available | Not Available | Not Available |
| Nippon India ETF Hang Seng BeES | HNGSNGBEES | Hang Seng Index | 0.79% | 52.18% | 3.83% | 3.20 |
NASDAQ 100 ETFs are best for long-term growth. 🔹 Mirae Asset NYSE FANG+ ETF is for those who want to focus on big U.S. tech stocks. 🔹 Hang Seng ETF gives exposure to Hong Kong companies with U.S. market influence.
3. U.S. Mutual Funds from India
Some Indian mutual funds invest in U.S. markets. You can invest in these just like Indian mutual funds.
✅ Best for: Long-term investors who prefer professional fund management.
| Fund Name | AUM (₹ Crore) | Expense Ratio (%) | 1-Year Return (%) | 3-Year Return (%) | 5-Year Return (%) | Launch Date |
|---|---|---|---|---|---|---|
| ICICI Prudential US Bluechip Equity Fund | 3,333 | 2.01 | 17.02 | 12.55 | 8.15 | 06-Jul-2012 |
| Mirae Asset NYSE FANG+ ETF Fund of Fund | 2,010.37 | 0.70 | 46.01 | 38.91 | N/A | N/A |
| Edelweiss US Technology Equity Fund of Fund | N/A | N/A | 20.67 | 15.20 | 4.26 | N/A |
| Motilal Oswal S&P 500 Index Fund | N/A | N/A | 14.38 | N/A | N/A | N/A |
How to Invest? Step-by-Step Guide
Foreign Exchange Fees & Charges
Tax on U.S. Investments
| Investor Type | Best ETF |
|---|---|
| High-growth investor | Motilal Oswal NASDAQ 100 ETF |
| Tech-focused investor | Mirae Asset NYSE FANG+ ETF |
| Diversified exposure | Navi US Total Stock Market FOF |
Motilal Oswal NASDAQ 100 ETF is the best for long-term investors. ✅ Mirae Asset NYSE FANG+ ETF is great for tech lovers. ✅ Navi US Total Stock Market FOF is perfect for broad U.S. exposure.
Final Thoughts
Investing in the U.S. market is a great way to grow wealth, diversify risk, and earn in dollars. Whether you choose direct U.S. stocks, ETFs, or mutual funds, always research before investing.
Start small, stay consistent, and build wealth for the future. 🚀
Got Questions? Drop them in the comments below! 👇
FAQs (Frequently Asked Questions)
1. Can I invest in U.S. stocks with my Indian bank account?
Yes! But you need to transfer money via the Liberalized Remittance Scheme (LRS). RBI allows up to $250,000 per year.
2. How much tax do I pay on U.S. stocks?
Capital Gains Tax – 20% (if held for more than 1 year)
Dividend Tax – 25% (deducted in the U.S., but you can claim tax credit in India)
3. Are there any hidden charges while investing in U.S. stocks?
Yes! Forex conversion fees (0.5% - 2%), broker charges, and remittance fees.
4. Which is better: U.S. ETFs or direct U.S. stocks?
ETFs are better for diversification and lower risk.
Direct stocks are good if you want to invest in specific companies.
5. Can I withdraw money anytime?
Yes, but forex conversion charges apply when converting USD back to INR.
Before You Leave...
Discover Our Most Powerful Tools!
🔢 Crorepati Calculator 💰 SIP with inflation Calculator