In recent years, more Indian investors are turning to the US stock market to diversify their portfolios and tap into global growth. With direct access to tech giants like Apple, Google, and Tesla, the opportunity to invest in US stocks from India has never been more relevant.
Yet, despite growing interest, several myths about US stock investment from India persist, creating confusion and hesitation. Whether you’re a beginner or an experienced investor exploring international markets, this article aims to clear up five common misconceptions and help you make informed decisions.
Myth 1: You Need a Lot of Money to Buy US Stocks from India
Reality: You can start small – even with ₹100.
Thanks to fractional investing, you don’t need thousands of rupees to buy expensive shares like Amazon or Microsoft. Many investment platforms now let you invest in US stocks from India with minimal capital, even buying a fraction of a share.
This means US stock investment for beginners in India is entirely possible without breaking the bank.
Myth 2: Opening a US Brokerage Account from India Is Complex
Reality: It’s simpler than opening a domestic demat account.
Several platforms now offer easy ways to invest in US stocks from India. With just your PAN card, valid ID, and a bank account, you can get started in minutes. These platforms take care of KYC, compliance, and international stock investment from India via trusted US brokerage partners.
Whether you’re a student, working professional, or entrepreneur, the process to buy US shares from India is now quick and convenient.
Myth 3: Currency Conversion Will Kill Your Returns
Reality: Exchange rates can work in your favor.
While the USD to INR conversion rate does impact returns, many overlook that the Indian rupee tends to depreciate over time. This often boosts your returns when converting back to INR.
For instance, if your US stock portfolio grows at 8% in USD, and the rupee weakens by 3%, your effective return in INR could be over 11%.
Myth 4: US Stocks Are Too Risky Compared to Indian Stocks
Reality: US stocks offer various opportunities, not necessarily higher risk.
The US stock market for Indian investors provides access to global innovation and resilience. Companies like Nvidia, Netflix, and Meta are leaders in sectors that may not be as evolved in India.
Adding US equities enables portfolio diversification for Indian investors, thereby reducing concentration risk and enhancing long-term stability.
Myth 5: RBI Doesn’t Allow Indians to Invest in Foreign Stocks
Reality: You can legally invest up to $250,000 per year under LRS.
Many shy away due to fears of regulation. But under the Liberalized Remittance Scheme (LRS) by the Reserve Bank of India, individuals can legally remit money abroad for investments.
So if you’re wondering how to invest in foreign stocks from India legally – this is the way. And yes, this includes buying shares of US companies from India via authorized routes.
Final Thoughts
Global investing isn’t just for the ultra-rich or finance professionals. Today, anyone in India can invest in US stocks online – safely, legally, and without large upfront capital. Whether you’re looking for long-term wealth, exposure to tech innovation, or protection against local market volatility, investing in US stocks from India is a smart strategy worth exploring.
