Step-by-Step Guide To US Stock Investments From India
by financeretire · October 21, 2025
For many Indian investors, the US stock market represents a world of opportunity. From global giants like Apple, Amazon, Tesla, and Microsoft to innovative startups leading the next wave of technology — the American market offers unmatched diversity and growth potential.
The good news is that you can now invest in US stocks directly from India, thanks to global investment platforms and liberalized remittance rules by the RBI.
If you’ve ever wondered how to buy US stocks sitting in India, here’s a complete step-by-step guide to get you started.
1. Why Invest in US Stocks?
Before you begin, it’s important to understand why investing in the US market makes sense for Indian investors.
Key Benefits:
✅ Global Diversification:
Reduces your portfolio risk by spreading investments across geographies.
✅ Access to Global Brands:
Invest in top-performing companies like Apple, Google, Netflix, and NVIDIA.
✅ Currency Advantage:
The US Dollar (USD) has historically appreciated against the Indian Rupee (INR), adding extra returns.
✅ High Innovation Market:
Exposure to leading industries such as AI, EVs, biotech, and cloud computing.
✅ Better Returns:
Over the last decade, the S&P 500 has consistently outperformed most Indian indices.
2. Legal Framework: RBI’s LRS Scheme
Investing in US stocks from India is completely legal, governed by the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India.
Under this scheme, an Indian resident can send up to USD 250,000 per year (around ₹2 crore) abroad for investment and other purposes.
You can use this limit to:
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Buy shares or ETFs listed in the US.
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Invest in global mutual funds.
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Hold money in foreign accounts.
3. Two Ways to Invest in US Stocks from India
You can invest through either of these routes:
Option 1: Direct Investment via Global Brokerage Platforms
You can directly buy and hold US stocks in your name using international brokerage accounts.
Popular Platforms:
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INDmoney
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Vested
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Groww (Global Investing)
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HDFC Securities Global
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ICICI Direct Global
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Interactive Brokers
Features:
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You get fractional shares (e.g., buy $10 worth of Apple).
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Full control over your portfolio.
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Real-time stock trading in USD.
Option 2: Indirect Investment via Indian Mutual Funds or ETFs
If you prefer a simpler, rupee-based approach, you can invest in Indian mutual funds that invest in US markets.
Examples:
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Motilal Oswal Nasdaq 100 Fund
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Edelweiss US Technology Fund
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Franklin India Feeder – Franklin US Opportunities Fund
Features:
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Invest in rupees (no forex transfer needed).
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Managed by fund professionals.
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Ideal for beginners who want US exposure without extra compliance.
4. Step-by-Step Process to Invest in US Stocks Directly
Here’s a simple 6-step guide to start investing in the US stock market from India.
Step 1: Choose a Reliable Global Investment Platform
Select a SEBI-compliant platform that allows cross-border investments.
Examples: INDmoney, Vested, or Groww Global.
✅ Check for:
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Low account opening fees
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Secure fund transfers
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RBI LRS compliance
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User-friendly app interface
Step 2: Complete KYC and Open Your Account
You’ll need to submit:
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PAN Card
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Aadhaar Card / Passport
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Bank statement
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Address proof
Verification usually takes 1–2 working days.
Step 3: Fund Your Account (Send USD Abroad)
After KYC approval, you’ll need to remit money from your Indian bank account under the LRS scheme.
✅ Steps:
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Request your broker to generate a funding link.
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Fill out the A2 form (for foreign remittance).
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Transfer funds via your bank (most use HDFC, ICICI, or Axis).
💡 Note: Some platforms like INDmoney partner with banks to make this process paperless.
Step 4: Select the US Stocks or ETFs to Invest In
Once your account is funded, you can browse and invest in:
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Individual stocks (e.g., Apple, Tesla, Google)
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ETFs (e.g., S&P 500 ETF, Nasdaq 100 ETF)
You can even buy fractional shares, allowing you to invest $10 or $20 in expensive stocks like Amazon.
Step 5: Monitor and Manage Your Portfolio
Use your app’s dashboard to track performance, price changes, and dividends.
Most platforms offer real-time updates, performance reports, and portfolio insights.
✅ You can:
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Set alerts for price changes.
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Diversify across sectors.
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Rebalance regularly for risk management.
Step 6: Withdraw or Repatriate Funds
When you sell your holdings, the proceeds go to your USD account.
You can:
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Reinvest in new stocks, or
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Withdraw and convert the amount back to INR via your broker or bank.
💡 Pro Tip: Keep records of all transactions for tax filing in India.
5. Taxation Rules for US Stocks in India
a. Dividend Income:
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Taxed at 25% in the US (withholding tax).
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You can claim credit in India under the Double Taxation Avoidance Agreement (DTAA).
b. Capital Gains:
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Short-Term (held <24 months): Taxed as per your income slab.
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Long-Term (held >24 months): 20% tax with indexation benefit.
Always report your global income under the foreign assets schedule (Schedule FA) in your Indian ITR.
6. How Much Should You Invest?
Start small — even ₹10,000–₹25,000 is enough to begin.
Experts recommend allocating 10–15% of your total portfolio to international (US) assets for diversification.
7. Tips for First-Time Investors
✅ Start with Index ETFs:
Invest in S&P 500 or Nasdaq ETFs to reduce risk and gain broad exposure.
✅ Avoid Frequent Trading:
Currency conversion and remittance fees can eat into returns.
✅ Reinvest Dividends:
For compounding growth over time.
✅ Stay Compliant:
Always use RBI-approved routes and disclose foreign holdings during tax filing.
8. Risks to Consider
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Currency Risk: INR–USD fluctuations can impact returns.
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Regulatory Changes: LRS or taxation rules may evolve.
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Platform Risk: Use trusted, SEBI-registered platforms only.
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Market Volatility: US tech stocks are more volatile than Indian blue chips.
Investing in US stocks from India is no longer complicated — it’s a smart way to diversify globally, earn in dollars, and participate in global growth stories.
If you’re just getting started:
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Begin with mutual funds or ETFs for simplicity.
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Move to direct US stock investing once you understand currency, taxation, and platforms.
In short:
“Don’t limit your investments to your country’s borders. The world’s best companies are just a few clicks away.”
