As the Indian investment landscape matures, more individuals are exploring international avenues to grow and diversify their wealth. One of the most popular emerging strategies is to start invest in US stocks from India. With the rise of digital platforms and streamlined regulations, what was once a complicated task is now highly accessible—even for first-time investors.
In this guide, we’ll walk through the practical steps, tax implications, benefits, and considerations associated with US stock investment from India.
Why Should You Invest in US Stocks?
Exposure to Global Innovation
The US is home to some of the world’s most valuable and innovative companies. By investing in US-listed equities, Indian investors can gain exposure to brands that dominate global markets—such as Apple, Amazon, Google, and Microsoft.
Currency Diversification
US stocks are denominated in USD. For Indian investors, this presents a strategic hedge against rupee depreciation. Over time, returns in USD can outperform local investments in INR when exchange rates are favorable.
Sectoral Diversity
The US market leads in sectors like artificial intelligence, electric vehicles, biotechnology, and clean energy—areas that may still be developing in Indian markets. By investing in US stocks, investors gain access to global megatrends early.
How to Invest in US Market from India
1. Choose a SEBI-Registered Investment Platform
The first step is selecting a platform that offers compliance with Indian and US regulations. Vested Finance is a dedicated platform for Indian investors, offering:
- Access to US stocks and ETFs
- INR to USD remittance support
- LRS-compliant transfers
- Tax documentation for Indian ITR
Choosing a compliant and reliable platform is critical for smooth transactions and legal safety.
2. Complete KYC Process
To open an overseas trading account, you’ll need to:
- Submit your PAN card
- Provide proof of address and identity (Aadhaar/passport)
- Link a verified Indian bank account
Most platforms process these details within 1–3 business days.
3. Fund Your US Brokerage Account
Under the Liberalized Remittance Scheme (LRS), Indian residents can remit up to USD 250,000 per financial year for foreign investments. To transfer funds:
- Submit Form A2 to your bank
- Sign an LRS declaration (auto-generated by platforms like Vested)
- Transfer INR, which will be converted to USD and deposited into your brokerage account
4. Start Investing in US Stocks
Once your account is funded, you can:
- Buy individual stocks like Meta, Nvidia, or Tesla
- Invest in Exchange-Traded Funds (ETFs) like S&P 500 or Nasdaq-100
- Use curated portfolios designed around global themes such as clean energy, tech growth, or healthcare
Fractional investing is supported, allowing you to buy portions of expensive stocks—ideal for beginners.
Key Benefits of US Stock Investment from India
Greater Growth Potential
US companies often dominate global innovation and scale at a much faster pace than emerging market firms. Investing in these giants can result in steady long-term appreciation.
Liquidity and Transparency
US markets are some of the most liquid in the world, with strict disclosure regulations. This ensures more predictable and secure trading conditions.
Long-Term Wealth Creation
US equities have historically delivered average annual returns of 8–10% over the long term. Combined with USD appreciation, this can significantly enhance portfolio value for Indian investors.
Understanding Tax on US Stocks in India
One of the most important aspects of investing in US stocks from India is taxation—both in the United States and back home.
Dividend Tax
- US companies withhold 25% tax on dividends paid to foreign investors (including Indians)
- However, thanks to the Double Taxation Avoidance Agreement (DTAA) between India and the US, this tax can be claimed as a credit during Indian tax filing using Form 67
Capital Gains Tax
- The US does not levy capital gains tax on Indian investors
- In India:
- Short-Term Capital Gains (STCG): If the holding period is less than 24 months, gains are taxed as per your applicable slab
- Long-Term Capital Gains (LTCG): If held for more than 24 months, gains are taxed at 20% with indexation benefits
Reporting Requirements
Indian investors must disclose their US investments in the following ITR schedules:
- Schedule FA (Foreign Assets)
- Schedule FSI (Foreign Source Income)
- Form 67 (for DTAA tax credit claim)
Platforms like Vested Finance provide downloadable tax summaries to simplify filing.
Risks to Consider Before You Start
Currency Fluctuation
Since returns are in USD, a strengthening rupee can reduce your effective INR returns. This is both a risk and an opportunity depending on timing.
Market Volatility
US equities are subject to macroeconomic shifts, policy changes by the Federal Reserve, and global events. Always diversify and avoid overexposure to any one sector or stock.
Regulatory Compliance
Always use RBI-compliant routes under LRS. Avoid unofficial remittance or unregulated brokers, which may lead to penalties or tax complications.
Tips to Start Investing in US Stocks from India Smartly
- ✅ Start with ETFs or curated portfolios before picking individual stocks
- ✅ Maintain a long-term view to benefit from compounding
- ✅ Allocate a fixed percentage (e.g., 10–15%) of your total portfolio to US equities
- ✅ Track returns in both INR and USD for realistic performance measurement
- ✅ Use platforms like Vested Finance for simplified investing, compliance, and tax handling
Final Thoughts
Start invest in US stocks from India if you’re seeking long-term global exposure, portfolio diversification, and USD-denominated returns. With seamless onboarding, fractional investing, and integrated tax support, platforms like Vested Finance make it easier than ever for Indian investors to step into the world’s largest stock market.
As with any investment, education, consistency, and regulatory compliance are key. Take small steps, stay informed, and grow globally.