Introduction
For decades, Indian investors relied primarily on domestic markets — NSE, BSE, mutual funds, and fixed deposits. But the world has changed. In today’s interconnected world, wealth creation is no longer confined by national borders. Increasingly, individuals want to participate in international opportunities and ask: how can I diversify my portfolio beyond India?
This article explores the concept of borderless investing, focusing on why and how Indians can participate in global markets, including US stock investment from India, and what challenges and rewards come with it.
Why Invest Beyond India?
While local markets provide growth, they also concentrate risk::
- Diversification: Protects against India-specific downturns.
- Global Giants: Access to companies like Apple, Tesla, and Amazon.
- Innovation Exposure: Industries like AI, biotech, and clean energy often lead in global markets.
- Currency Strength: Dollar-denominated returns often outpace rupee value.
Borderless investing helps you grow wealth in step with the world’s economy, not just India’s.
The Liberalized Remittance Scheme (LRS): The Gateway
The Reserve Bank of India (RBI) enables global investing through the Liberalized Remittance Scheme (LRS).
- Indian residents can remit up to USD 250,000 annually
- Money can be used for investments, education, or travel.
- Transfers must be processed through authorized banks, along with the required documentation.
This scheme is the foundation for opportunities like US stock investment from India.
Routes to Global Investing
1. Direct International Brokers
- Open an account with a global brokerage.
- Transfer funds under LRS.
- Buy US equities, ETFs, or fractional shares.
Pros: Complete access to global markets.
Cons: Fewer global stocks compared to direct brokers.
2. Indian Brokers With US Partnerships
- Local brokers tie up with US-based partners.
- Funds are transferred in INR, converted automatically to USD.
Pros: Convenient and beginner-friendly.
Cons: Limited number of global stocks compared to direct brokers.
3. Global Mutual Funds and ETFs in India
- Indian AMCs offer funds tracking indices like the S&P 500 or NASDAQ.
- No foreign remittance required.
Pros: Simplest option, fully local.
Cons: Indirect exposure, higher fund charges.
Rewards of Borderless Investing
- Global Diversification: Reduced dependency on domestic growth.
- Currency Gains: Dollar appreciation adds to returns.
- Wealth Expansion: Invest in industries not yet developed in India.
- Financial Security: Global exposure shields you from local market uncertainties
Risks in Going Global
- Currency Fluctuations: A stronger rupee may reduce returns.
- Regulatory Complexity: Must follow RBI and US compliance rules.
- Taxation: Dividends taxed at 25% in the US, capital gains taxed in India.
- Costs: Remittance charges, forex markup, and brokerage fees.
Managing these risks is crucial for building wealth across borders.
Taxation: What to Know
- Dividends: Taxed at 25% in the US, with tax credit available in India under DTAA.
- Capital Gains: Taxed only in India, at slab rates for short-term and 20% with indexation for long-term.
- ITR Disclosure: Report all foreign assets under Schedule FA.
Tax planning ensures your global returns are fully optimized.
Tips for Success in Borderless Investing
- Start Small: Test the waters with ETFs or mutual funds.
- Diversify: Spread across geographies and industries.
- Compare Platforms: Broker fees and features can vary significantly.
- Keep Records: For remittance and tax compliance.
- Think Long-Term: Global markets reward patience and consistency.
The Future of Global Investing for Indians
With more fintech platforms emerging, expect:
- Easier access to US and European markets.
- Lower remittance costs and forex markups.
- More global ETFs listed directly in India.
Borderless investing is rapidly becoming mainstream — no longer just for the wealthy, but for everyday investors as well.
Conclusion
The world is no longer divided into “local” and “foreign” when it comes to wealth creation. For Indians, investing without borders means accessing opportunities beyond NSE and BSE, building portfolios that include international leaders, and securing wealth against domestic risks.
Whether through direct brokers, local partnerships, or mutual funds, global investing is no longer a distant dream — it’s a step that every ambitious investor can take today.
FAQs
Q1. Can I invest globally without sending money abroad?
Yes, through Indian mutual funds and ETFs that track global indices.
Q2. What’s the minimum investment required?
With fractional investing, you can start with as little as $10.
Q3. Do I pay taxes twice on global investments?
No. The India-US DTAA ensures you can claim credit for taxes paid in the US.
Q4. How much of my portfolio should be global?
Experts suggest 15–30% for balanced diversification.