How to Invest in US Stocks From India (2026 Guide): Smart Ways to Access the US Stock Market From India

Intro:
Investing in US stocks from India is now seamless. Here’s the complete 2026 guide on how Indian and global investors can access US and international equity markets efficiently.

Key Takeaways

• Indians can invest up to USD 250,000/year abroad under LRS.
  
• Main methods: Direct US stocks, US mutual funds/ETFs, international equity funds.
  
• Costs: FX markup, remittance fees, TCS, and withholding tax.
  
• GIFT City’s NSE IFSC offers simplified access to select US stocks.
  
• Extended US trading hours allow pre-market and post-market flexibility.
  
• International equity funds provide diversified exposure to US, Europe, and developed markets.

Why Indian Investors Want Global Exposure

US markets are home to the world’s most influential businesses. Diversification across geographies strengthens long-term wealth resilience. Exposure to USD, EUR, and GBP adds an additional layer of stability while participating in innovation-driven growth.

Global investing also aligns with the long-term strategies pursued by sophisticated families and wealth managers.

How to Invest in US Stocks From India (Primary Methods)

A. How to Invest in US Stocks From India Through Direct Global Investing

Direct investing allows Indians to buy US-listed companies and ETFs individually.

How it works

• Complete KYC and W-8BEN.
  
• Remit funds under LRS.
  
• Buy full or fractional shares.
  

Strengths

• Direct ownership.
  
• Full access to US markets.
  
• Ability to build personalized portfolios.
  

Limitations

• Requires research discipline.
  
• FX and remittance charges apply.
  
• Tax compliance is investor-managed.
  

B. How to Invest in US Stock Market Through Mutual Funds & ETFs

India-domiciled US feeder funds and ETFs offer convenient access.

These funds invest in themes like:

• S&P 500
  
• Nasdaq 100
  
• US large-cap value
  
• Global technology
  

Benefits

• No LRS needed.
  
• Professionally managed.
  
• Simple onboarding.
  

Limitations

• Treated as debt funds for taxation.
  
• Expense ratios may be higher.
  
• US-only exposure lacks global balance.
  

C. How to Invest in US Stock Market From India via International Equity Funds

International equity funds invest not only in the US but also in Europe, developed Asia, and other mature markets. This creates balanced, multi-currency exposure.

Example of Strategic Positioning

As part of a diversified global allocation, solutions like the Aequitas Global Value Fund follow a value-driven approach, identifying undervalued opportunities across global developed markets. These strategies provide disciplined selection and long-term wealth compounding potential.

Ideal for:

• Investors seeking global breadth beyond US tech.
• Families focusing on risk-adjusted global compounding.
• Those preferring professionally managed international exposure.
• Sophisticated product built by experts 

D. Additional Route: Investing in US Stocks Through GIFT City (NSE IFSC)

(Relevant ClearTax gap filled)

GIFT City’s NSE International Financial Services Centre (IFSC) enables exposure to select US-listed stocks via the IFSC platform, including major names such as Apple and Microsoft.

Benefits:

• No US brokerage account required; access via an IFSC broker.
  
• Settlement & compliance simplified.
  
• INR → USD conversion occurs within India.
  
• Lower remittance friction vs LRS transfers. Likely smoother than traditional offshore investing; LRS and bank processes may still apply.
  

Limitations:

• Limited number of US stocks currently available.
  
• Trading volumes may be lower than US exchanges.
  

This route is rapidly evolving and represents a simplified option for beginners and compliance-sensitive investors.

Decision Framework: Which Route Is Right for You?

Step 1: Do you want to research and pick individual US stocks?

→ Yes: Direct investing
→ No: Continue to Step 2

Step 2: Do you want only US exposure?

→ Yes: US mutual funds/ETFs
→ No: International equity funds (multi-country diversification)

Step 3: Do you want simplified remittance and compliance?

→ Yes: GIFT City IFSC (limited stock list)
→ No: Direct/LRS investing remains open.

Investor Suitability Matrix

Step-by-Step Guide: How to Invest in US Stocks From India

Step 1: Choose an investment route

Direct, US feeder funds, or international equity funds.

Step 2: Complete KYC

PAN, Aadhaar/Passport, address proof, FATCA, etc.

Step 3: Fund allocation or remittance

• LRS remittance for direct US investing.
  
• Regular Indian banking for Indian mutual funds & international equity funds.

Step 4: Build or allocate your portfolio

Direct selection or professionally managed fund route.

Step 5: Monitor, review & rebalance

Global allocations require periodic reviews for sector/geographic shifts.

Costs & Charges Explained 

A. Cost Components

B. Example: Cost Impact for a $5,000 Investment

Detailed Taxation & Regulatory Nuances

A. Withholding Tax on Dividends

US dividends are typically subject to 25% withholding tax for Indian residents (with W-8BEN filed)

B. Capital Gains

Direct investments in US stocks are typically treated as unlisted equity for Indian tax purposes:

– STCG (<24 months): Slab rate

– LTCG (≥24 months): 20% with indexation

For GIFT City investments, treatment can depend on the exact instrument and should be verified with the broker’s security classification

C. TCS on LRS Remittances

• Up to ₹10 lakh: 0% or 5% depending on purpose
  
• Above ₹10 lakh: 20% TCS, adjustable during ITR filing.
  

D. Foreign Tax Credit (FTC)

Investors may claim credit in India for US taxes paid, subject to DTAA rules.

US Market Timings & Extended Trading Hours

US markets operate:

• 7:00 PM – 1:30 AM IST (Daylight Saving)
  
• 8:00 PM – 2:30 AM IST (Standard Time)
  

Extended Trading Hours

Investors can also access:

• Pre-market: 4:00 AM – 9:30 AM EST
  
• After-hours: 4:00 PM – 8:00 PM EST
  

Note:

Liquidity is lower during extended hours, and spreads may widen. This matters for tactical traders.

Risks to Consider While Investing in US Stocks

• USD/INR fluctuations impact real returns.
  
• US tech concentration risk.
  
• Remittance regulation updates.
  
• Value cycles differ across markets.
  
• Extended-hours price volatility.

Strategic Role of International Equity Funds

International equity funds help Indian and global investors reduce single-country risk by investing across the US, Europe, and developed Asia.

Why They Matter

• Multi-currency exposure
  
• Broader sector diversification
  
• Value opportunities outside India
  
• Lower correlation to domestic markets
  

Where Aequitas Fits In

Strategies like the Aequitas Global Value Fund bring:

• Value-driven global equity selection
  
• Exposure across developed markets
  
• Disciplined downside protection
  
• Long-term wealth-compounding orientation
  

This creates a more resilient global allocation for sophisticated investors.

Frequently Asked Questions

1. Is it legal for Indians to invest in US stocks?

Yes, under the Liberalised Remittance Scheme (LRS), individuals may invest up to USD 250,000 annually.

2. What is the minimum amount needed?

US mutual funds allow small tickets; fractional shares enable $1 investing.

3. Do I need a US bank account?

No. Platforms handle custody and settlement.

4. Are taxes complicated?

Dividend withholding + Indian capital gains rules apply, but FTC can reduce double taxation impact.

5. Is GIFT City a good option?

Yes, for investors looking to diversify globally with regards to investment geography & currency, GIFT City offers a seamless and efficient way to explore.

Conclusion

Investing in US stocks from India is now straightforward through direct investing, feeder funds, GIFT City, or internationally diversified equity strategies. For long-term, risk-adjusted wealth creation, global diversification—especially through disciplined international equity funds—offers a more balanced approach.

Investors should align their global allocation with their financial goals, risk capacity, and investment horizons to build a resilient portfolio capable of capturing worldwide opportunities.