Finance

US Stock Investment From India – Building a Global Portfolio

The financial world is no longer limited by borders. Today, Indian investors are actively exploring US stock investment from India to diversify their holdings, reduce country-specific risks, and grow long-term wealth. But how do you build a global portfolio smartly? Let’s explore.

Why Invest in US Stocks?

Diversification – Reduces reliance on Indian economy.
Global Exposure – Access to technology, healthcare, and renewable energy leaders.
Currency Hedge – If the rupee weakens, your dollar assets rise in value.
Long-Term Growth – US markets have consistently grown over decades.

How to Get Started

Open an account with a broker offering access to US equities.
Complete KYC with PAN, Aadhaar, and bank details.
Transfer money under the LRS framework (up to $250,000 per year).

Choosing the Right Investment Options

When planning your US stock investment from India, you can choose from:

Direct Stocks – Buy companies you believe in for the long term.
ETFs – Spread risk across multiple companies and sectors.
Index Funds – Mirror market performance like S&P 500 or NASDAQ 100.

Example Portfolio

For a ₹5 lakh investment:

₹2 lakh → S&P 500 ETF.
₹1.5 lakh → Technology and AI stocks.
₹1 lakh → Healthcare leaders.
₹50,000 → Renewable energy companies.

Managing Risks

Diversify across industries.
Minimize frequent trading to reduce unnecessary forex conversion charges..
Keep investments long-term to benefit from compounding.

Taxation Considerations

Dividends taxed at 25% in the US, then reported in India.
Capital gains are only taxed in India.
The Double Taxation Avoidance Agreement (DTAA) between India and the US ensures you are not taxed twice on the same income.

Common Mistakes to Avoid

Overexposure to trending tech stocks.
Ignoring costs like remittance charges.
Failing to declare investments during tax filing.

Conclusion

By diversifying across sectors, planning for taxes, and staying invested, you can build a powerful global portfolio through US stock investment from India—one that aligns with your long-term financial goals.