Complete Guide to Global Investing from India 2026
Diversify beyond India. Access the S&P 500, Nasdaq 100, and global leaders like Apple, NVIDIA, and Microsoft — with expert guidance and LRS-compliant processes from Shriram Financial Services.
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What is Global Investing?
Global investing means allocating a portion of your portfolio to financial assets outside India — US stocks, international ETFs, global mutual funds, or direct foreign securities. For Indian investors, it is legally permitted under FEMA's Liberalised Remittance Scheme (LRS) up to USD 250,000 per year. A simpler route requires no LRS at all: India-listed international ETFs track global indices like the S&P 500 and Nasdaq 100 and are bought like any domestic mutual fund.
Why Diversify Globally?
Three structural reasons every Indian investor should consider a global allocation.
Portfolio Diversification
Indian markets (Nifty 50) and US markets (S&P 500) are not highly correlated — when one falls, the other often holds. A 10–20% global allocation meaningfully smooths overall portfolio volatility.
Natural Currency Hedge
The Indian rupee has historically depreciated ~4% per year against the USD. Investing in USD-denominated assets provides a natural hedge against long-term INR weakness.
Access to Global Leaders
India has no equivalent of Apple, NVIDIA, Microsoft, or Amazon. Global investing lets you own the world's most innovative companies — entirely unavailable on Indian exchanges.
Ways to Invest Globally from India
Four routes — from the simplest (no LRS, start with ₹500) to full direct US stock access via the Liberalised Remittance Scheme.
01
No LRS Required — SimplestIndia-Listed International ETFs
Buy Nasdaq 100 or S&P 500 index ETFs listed on NSE/BSE. Same process as any domestic mutual fund — no FEMA forms, no currency conversion. Start via SIP from ₹500.
02
No LRS RequiredInternational Fund-of-Funds
Indian mutual funds that invest in overseas ETFs via a feeder structure. Fully SEBI-regulated, professionally managed, and accessible with as little as ₹500 via SIP.
03
LRS Required — Up to USD 250K/yrDirect US Stocks via LRS
Buy fractional US shares (Apple, NVIDIA, Amazon) through an LRS-linked foreign brokerage. Maximum flexibility for stock-pickers. TCS applies above ₹7 lakh remittance.
04
For NRI InvestorsNRI Investment Routes
NRIs invest through NRE/NRO accounts and FCNR deposits without LRS constraints. Separate FEMA permissions apply. NRE route is fully repatriable.
Global Investing vs Indian Investing
How do US and Indian markets compare across returns, currency, risk, and access? Use this to decide the right allocation for your portfolio.
Factor
Global Markets (S&P 500)
Indian Markets (Nifty 50)
10-Year CAGR
~12–14% USD (S&P 500)
~11–13% INR (Nifty 50)
Currency Effect
USD appreciates ~4%/yr vs INR
INR depreciates vs major currencies
Volatility
Lower — deepest global market
Higher — emerging market premium
Key Sectors
AI, Big Tech, Healthcare, Biotech
Financials, IT, FMCG, Energy
Liquidity
Extremely high — $30T+ market cap
High — smaller universe
India Correlation
Low-to-moderate (diversification benefit)
Full — no within-India diversification
Recommended Allocation
10–30% of equity portfolio
70–90% of equity portfolio
US Stocks for Indians
From fractional shares to sector selection — everything you need to know about investing directly in US equities from India.
US Sectors & Top Stocks
Key sectors available in US markets that have no comparable scale in India.
Sector
Top Stocks
Why Access It from India
Technology
Apple, NVIDIA, Microsoft, Meta
No equivalent scale available in India
AI & Semis
NVIDIA, AMD, Qualcomm, ASML
India has no semiconductor manufacturers
Healthcare
UnitedHealth, Pfizer, Eli Lilly
Global pharma R&D depth unmatched
Consumer
Amazon, Costco, McDonald's
Global consumer brand dominance
Financials
JPMorgan, Berkshire Hathaway, Visa
USD-denominated financial depth
US Market Indices
The four major US indices — and which suits each type of investor.
Index
Companies
Focus
Best For
S&P 500
500 largest US companies
Broad market — diversified
Beginners, long-term investors
Nasdaq 100
Top 100 tech/growth firms
Technology & innovation
Growth-oriented investors
Dow Jones
30 blue-chip giants
Established mega-cap stability
Conservative US exposure
Russell 2000
2,000 US small-cap stocks
US small-cap growth
Broad small-cap diversification
Fractional Shares
Many US stocks cost hundreds of dollars per share (Amazon $190+, Google $180+). Fractional share platforms let you invest as little as $1 in any stock — making all global leaders accessible regardless of share price.
Dividend vs Growth Stocks
US dividend stocks (Coca-Cola, J&J, AT&T) yield 2–5% USD annually — useful for passive USD income. Growth stocks (Tesla, NVIDIA, Meta) pay no dividend but offer capital appreciation potential far outpacing income returns.
Global Mutual Funds & ETFs
The simplest way to invest globally from India — no LRS, no forex conversion, same process as buying any domestic mutual fund.
Fund Type
What It Tracks
LRS Required?
Tax Treatment
India-Listed S&P 500 ETF
Top 500 US companies
No
As per slab (debt fund rules)
India-Listed Nasdaq 100 ETF
Top 100 US tech/growth stocks
No
As per slab
International Fund-of-Funds
Global ETFs via feeder structure
No
As per slab
Direct US Stock / ETF via LRS
Individual stocks or ETFs
Yes
STCG/LTCG + US withholding tax
Regional Fund (Europe / Asia)
European or Asian markets
No
As per slab
Featured India-Listed Global Funds
Popular international ETFs and fund-of-funds available on NSE/BSE — no LRS required.
Motilal Oswal Nasdaq 100 ETF
Tracks the Nasdaq 100 — top 100 US tech and growth companies. No LRS required; invest via SIP from ₹500.
Mirae Asset NYSE FANG+ ETF
Concentrated exposure to the top 10 global tech leaders — Apple, Amazon, Netflix, Google, and more.
ICICI Pru US Bluechip Fund
Invests in US blue-chip stocks via actively managed US equity funds. SEBI-regulated, no LRS needed.
Edelweiss US Tech Fund
Focused exposure to US technology via a feeder fund structure. No LRS required, accessible via SIP.
How to Invest in Global Markets
Four steps from choosing your route to tracking your first international position.
Choose Your Route
Decide between India-listed international ETFs/funds (no LRS) or a direct foreign stock account (LRS required, more flexibility for stock-pickers).
Complete KYC & LRS Setup
For LRS-based investing, submit Form A2 with your bank and complete FEMA compliance. For India-listed funds, standard KYC through Shriram is sufficient.
Select Markets & Assets
Choose your geographic market, index ETF, active fund, or individual stocks. Our research desk provides guidance on US and international opportunities.
Monitor Global Portfolio
Track international positions alongside domestic holdings on the Antara app. Set FX rate alerts and portfolio rebalancing reminders as needed.
Documents & Setup
Everything you need to qualify and get your global investment account ready.
KYC Documents Required
PAN card (mandatory for all investors)
Aadhaar card for identity verification
Address proof — Aadhaar, Passport, or Utility Bill
Cancelled cheque or recent bank statement
W-8BEN form for US investing via LRS (withholding tax benefit)
LRS Setup (Direct US Stocks Route)
Form A2 submission with authorised dealer bank (LRS route only)
Foreign brokerage account linked to Indian bank (LRS route)
Valid mobile number and email ID for account confirmation
Active bank account with net banking or UPI enabled
Taxation of Global Investments
Tax treatment depends entirely on your route — direct LRS investing versus India-listed international ETFs. Both India and source-country taxes may apply for the LRS route.
Tax Head
Direct US Stocks (LRS)
India-Listed Intl ETF / Fund
US Dividend Withholding Tax
25% (15% with DTAA benefit — file W-8BEN)
Not applicable — fund absorbs it
STCG (held under 2 years)
As per income tax slab
As per income tax slab (under 2 yrs)
LTCG (held 2+ years)
12.5% flat — no indexation
As per slab — no indexation (Apr 2023)
DTAA Benefit
India-US DTAA allows credit for US tax
Managed at fund level — transparent
TCS on LRS Remittance
20% TCS above ₹7 lakh/yr (refundable ITR)
No TCS (domestic investment)
ITR Disclosure (Schedule FA)
Must disclose all foreign assets
No disclosure needed by investor
Risks in Global Investing
Understand what can move against you before committing capital to international markets.
Currency Risk
Returns in USD or EUR convert to INR on exit. If INR strengthens against the USD, rupee returns fall even if the underlying stock rose in dollar terms.
Regulatory Risk
RBI and SEBI periodically revise LRS limits and fund-of-fund structures. A regulatory change can restrict overseas investment or affect existing holdings.
Geopolitical & Market Risk
Trade wars, sanctions, interest rate decisions, and foreign central bank policy drive international markets — factors largely outside India-based investors control.
TCS Cash Flow Drag
LRS remittances above ₹7 lakh/year attract 20% TCS under Section 206C(1G). Although refundable via ITR, it creates a temporary cash flow impact for larger investors.
Regulatory Guide for Indians
Everything Indian residents need to know to invest globally in a legal and FEMA-compliant manner.
LRS — Liberalised Remittance Scheme
All Indian residents may remit up to USD 250,000 (~₹2.08 crore) per financial year
Covers overseas investment, education, travel, and property purchase
Remittance above ₹7 lakh/year attracts 20% TCS (refundable via ITR filing)
Submit Form A2 with your authorised dealer bank for each remittance
FEMA 1999 Compliance
FEMA governs all cross-border capital flows for Indian residents
Overseas investment in securities is a capital account transaction permitted under FEMA
OTC forex trading via offshore brokers is a FEMA violation — punishable by penalty
File Schedule FA in your ITR every year to disclose all overseas investments
RBI Guidelines
RBI approves and monitors LRS remittances through authorised dealer banks
No RBI approval needed for individual LRS investments up to USD 250,000
RBI can revise LRS limits — always check rbi.org.in for the current position
NRIs have separate FEMA permissions and cannot use the LRS route
Next Steps & Related Products
Global diversification works best alongside a strong domestic foundation. Explore related products.
Related 01
Equity Stocks
Build a strong domestic foundation alongside your global portfolio. Zero delivery brokerage on NSE & BSE with full research support.
Related 02
Mutual Funds
India-listed international ETFs are mutual funds — invest in Nasdaq 100 or S&P 500 via SIP or lump sum with no LRS required.
Related 03
Fixed Deposit
Balance global equity risk with guaranteed-return FDs for the stable core of your portfolio. DICGC-insured bank FDs available.
Frequently Asked Questions
Can Indian residents invest in US stocks?
Yes — two routes: (1) India-listed international ETFs and fund-of-funds (no LRS needed, same process as a domestic mutual fund); (2) Direct US stock investment via a foreign brokerage linked to an LRS-compliant Indian bank, allowing fractional shares starting from $1.
What is the LRS limit for investing abroad?
Under FEMA's LRS, Indian residents can remit up to USD 250,000 (~₹2.08 crore) per financial year for overseas investment. Remittances above ₹7 lakh attract 20% TCS, refundable via ITR filing.
How are international investment returns taxed in India?
Direct LRS holdings: STCG (under 2 years) taxed per slab; LTCG (2+ years) at 12.5% flat. India-listed international ETFs are taxed as debt funds — per slab rate for both short and long term (from April 2023).
Can I invest globally without LRS?
Yes — India-listed international ETFs (e.g., Motilal Oswal Nasdaq 100 ETF, Mirae Asset NYSE FANG+ ETF) and international fund-of-funds are bought exactly like domestic mutual funds on NSE/BSE. No LRS, no forex conversion, no FEMA compliance needed.
What is TCS on LRS remittance and is it refundable?
Tax Collected at Source at 20% applies to LRS remittances above ₹7 lakh per financial year under Section 206C(1G). It is fully refundable when you file your ITR but creates temporary cash flow drag for investors remitting larger amounts.
What is the minimum amount for global investing from India?
For India-listed international ETFs, you can start with as little as ₹500 via SIP. For direct US stocks via LRS, many foreign brokerages allow fractional shares starting from $1, with no mandatory minimum deposit.
Is global investing risky for Indian investors?
Global diversification reduces overall portfolio correlation — US and Indian markets don't always move together. Currency, geopolitical, and regulatory risks are additional. A 10–20% allocation via India-listed international ETFs suits most retail investors starting out.
Do NRIs follow the same LRS rules as residents?
No. NRIs have separate FEMA permissions and cannot use the LRS route. They invest through NRE/NRO accounts, FCNR deposits, or direct foreign investment permitted under FEMA. Consult a FEMA-qualified tax advisor for NRI-specific guidance.
Need expert guidance?
Our global investing specialists will walk you through LRS compliance, fund selection, and tax planning for international investments.
Go Global with Shriram Financial Services
Access US stocks, global ETFs, and international funds — expert-guided, FEMA-compliant, and fully digital from India.