How to Invest in US Stocks from India in 2026 (4 Routes Compared)
By Nitish Bharadwaj · Published May 22, 2026 · 5 min
Indians can invest in US stocks through four main routes: direct investment via platforms like Vested or INDmoney under the LRS $250,000 annual limit, US-focused mutual funds in Indian rupees, Fund of Funds investing in US ETFs, and international ETFs listed on NSE. This guide compares each route on tax treatment, currency risk, cost, minimum investment, and the practical steps to get started in 2026.
The S&P 500 has historically returned roughly 12-13% annually in USD over the past decade, and rupee depreciation has added a few percentage points to INR returns (past performance is no guarantee). As an Indian investor, you can now access US stocks through multiple routes.
Your Options to Invest in US Stocks
- US-focused mutual funds in India (Mirae Asset S&P 500 ETF, Edelweiss US Technology ETF) — most convenient, no KYC hassle
- Direct investment via apps (INDmoney, Vested, Groww) — buy fractional shares of Apple, Google, Amazon
- International brokers (Interactive Brokers) — full access but complex setup
- Fund of Funds (FOF) — Indian fund investing in a US fund — slightly higher expense ratio
| Route | Tax Treatment | Min Investment | Complexity |
|---|---|---|---|
| Indian MF (US index/FoF) | Always taxed at your slab rate, any holding period — no LTCG or indexation (funds under 35% Indian equity, since April 2023) | ₹500 SIP | Low |
| Direct stocks (Vested/INDmoney) | 12.5% LTCG after 24 months (slab if sooner) | $1 fractional share | Medium |
| Interactive Brokers | 12.5% LTCG after 24 months (slab if sooner) | $1 fractional share | High |
Our Recommendation
For most Indian investors, a Nifty 50 index + S&P 500 index fund combination (80% India + 20% US) is the optimal global portfolio. Use Mirae Asset S&P 500 ETF or Motilal Oswal S&P 500 Index Fund for the US allocation — no LRS hassle, SIP-compatible, low expense ratio. This is the international diversification leg of a ₹1 crore portfolio plan.
Frequently Asked Questions
What is the LRS limit for investing in US stocks, and does TCS apply?
The Liberalised Remittance Scheme allows Indians to invest up to $250,000 per financial year in foreign markets. A 20% TCS applies on LRS remittances above ₹10 lakh a year for this purpose, though it is adjustable or refundable via your ITR. Budget 2026 left this rate unchanged, unlike the rates for education, medical, and tour package remittances.
Do Indian mutual funds that invest in US stocks count against my LRS limit?
No — Indian mutual funds investing in US stocks bypass the LRS limit entirely. However, they carry their own SEBI/RBI investment cap and a less favourable tax treatment, since they're always taxed at your slab rate regardless of holding period, with no LTCG or indexation benefit, for funds under 35% Indian equity since April 2023.
How is direct investment in US stocks taxed compared to Indian mutual funds investing in the US?
Direct stock investment through apps like Vested or INDmoney, or via Interactive Brokers, is taxed at 12.5% LTCG after a 24-month holding period, or at your slab rate if sold sooner. Indian mutual funds investing in US markets, by contrast, are always taxed at your slab rate with no LTCG benefit regardless of how long you hold them.
What is a reasonable portfolio split between Indian and US equity?
For most Indian investors, an 80% India / 20% US split using a Nifty 50 index fund combined with an S&P 500 index fund (such as Mirae Asset S&P 500 ETF or Motilal Oswal S&P 500 Index Fund) is considered the optimal global portfolio — accessible without LRS hassle, SIP-compatible, and with a low expense ratio.