- Investing in
US stocksgives you exposure to the growth avenuesavailable to these companies.
- In addition to this, you also get to geographically diversify your investment portfolio, reducing your overall risk.
- If this is something that interests you, here’s how you can
invest in US stocksfrom India.
One of the things often talked about when it comes to investing is diversification. While usually it refers to allocating your capital across various asset classes, geographical diversification is also an aspect that is worth considering.
This is where
investing in US stocks comes into the picture. While there are mutual fund schemes specifically oriented towards US stocks, you can also invest in equities of these US companies directly.
Investing in US stocks from India and being able to participate in the action in the US equity markets is now easier than ever before, thanks to a range of options available for investing. From NSE IFSC to brokerages like Vested, INDmoney, among others, investors and traders alike have enough options to invest in the US stock markets.
How to invest in US stocks from India
There are multiple ways to invest in US stocks from India.
Note that for the first two options, you will have to fund your trading account after converting rupee to US dollar.
It is also recommended to check each broker’s commission, brokerage, conversion fee and any other charges, if applicable.
Open a trading account with a domestic broker
Domestic brokers have tie-ups with brokers in the US, allowing you to invest in US stocks directly. Some of these options include INDmoney, Vested, or ICICI Direct, among others.
Open a trading account with a foreign broker
Alternatively, you can directly open a trading account with a US-based broker like Ameritrade, Charles Schwab, Interactive Brokers, Webull, among others.
Invest via NSE IFSC
This is the third option available at your disposal, but it is limited in reach as of now.
NSE IFSC currently supports only eight US stocks – Tesla, Apple, Netflix, Amazon, Alphabet, Microsoft, Meta and Walmart.
Apart from direct investing options mentioned above, you can also consider mutual funds and exchange traded funds with exposure to US stocks. However, the mutual fund route is currently unavailable as these funds have reached the maximum limit allowed by the RBI.
How much can I invest in US stocks?
The Reserve Bank of India has a limit of $2,50,000 (approx. ₹192.5 lakh) under the Liberalised Remittance Scheme, so you can invest up to this amount freely, without any restrictions.
Disclaimer: This is not investment advice.