Two ways to get US exposure
You can invest in US stocks directly, or indirectly through Indian funds.
- Directly — buy US shares (often fractional) through a platform, under the RBI’s LRS limit of USD 250,000 a year.
- Indirectly — via international mutual funds or US-focused ETFs that invest abroad for you, without the LRS process.
The LRS route
The Liberalised Remittance Scheme lets resident Indians send up to USD 250,000 abroad each year, including to invest in foreign stocks. Note that TCS may apply on remittances above a threshold, adjustable against your tax.
Tax on US stocks
Dividends from US stocks face US withholding tax (offset in India via the DTAA). Capital gains are taxed in India as per the holding period for foreign shares. Keep records for your return.
Which route suits you?
For simplicity and smaller amounts, an international fund or ETF avoids paperwork and currency handling. For direct ownership of specific companies, the LRS route gives you individual US shares. See our global investing options.
Frequently asked questions
Can Indians invest in US stocks?
Yes. Resident Indians can invest in US stocks directly under the RBI’s LRS (up to USD 250,000 a year), or indirectly through international mutual funds and ETFs.
Do I need a lot of money to buy US stocks?
No — fractional shares let you invest a small fixed amount in high-priced US stocks, and international funds start even smaller.
How are US stocks taxed for Indian investors?
US dividends face US withholding tax (credited in India under the DTAA), and capital gains are taxed in India per the holding period for foreign shares.