how Indian Investors Can Seamlessly Access US Stock Markets
Investing in US stocks has become an increasingly attractive option for Indian investors looking to diversify their portfolios and own a slice of teh world’s most influential companies. With India’s mutual fund industry hitting the Reserve Bank of India’s $7 billion cap for overseas investments, platforms like Vested Finance, INDmoney, and Appreciate have emerged as key players, enabling access to US markets through the Liberalized Remittance Scheme (LRS).
The Gateway: Liberalized Remittance Scheme
Table of Contents
Under the LRS, Indian residents can remit up to $250,000 annually for foreign investments, including US stocks and ETFs. This provision has been leveraged by platforms like Vested Finance,INDmoney,and Appreciate to simplify the process of investing in US-listed securities.
The Process: From KYC to US Stock Wallet
The journey begins with a Know Your Customer (KYC) verification, which is fully digital across all three platforms. “The KYC process on the INDmoney app is entirely digital and takes just a few minutes to complete,” says Ashish Kashyap, founder and CEO of INDmoney. “All you need is your PAN card and Aadhaar details.”
Appreciate offers a similar experience. “the KYC process on the Appreciate app can be completed in 5-6 minutes using just your PAN card and Aadhaar,” explains Shlok Srivastav, co-founder and COO of Appreciate. Vested Finance also ensures a swift and hassle-free process,with KYC completion in under five minutes.
Once KYC is completed, the next step involves linking your bank account and setting up an LRS account.Platforms like INDmoney and Appreciate integrate these steps directly into their onboarding process, minimizing friction.
As a notable example, Appreciate requires users to open a zero-balance savings account with Yes Bank, which is then linked to the platform for investment purposes. “We are also in the process of integrating with more banks to provide our customers with additional options,” Srivastav adds.
Vested Finance allows users to transfer funds from any Indian bank, though partnerships with HDFC Bank, ICICI Bank, and Axis Bank enable transfers within one business day. Transfers from other banks may take three to four business days.
INDmoney, on the other hand, facilitates transfers using HDFC bank, Axis Bank, or Federal Bank. Users may also link any bank account for withdrawal purposes.
Once linked, the platform creates a US stock wallet for seamless transactions in US-listed securities. This wallet, managed by broker-dealer DriveWealth, ensures secure transactions. Fund transfers between your Indian bank account and the US wallet typically take 8-24 hours.
Ready to Invest
“Once your LRS account is set up and funds are transferred, you can start investing in US equities,” explains Viram Shah, founder and CEO of Vested Finance. “The US wallet within the app is hosted with DriveWealth, a registered broker-dealer in the US, ensuring your investments are securely held in a US-regulated entity.”
Key Features at a glance
| Platform | KYC Process | bank Integration | Transfer Time |
|———————|————————————-|——————————————|—————————-|
| Vested Finance | Under 5 minutes | Any Indian bank (HDFC, ICICI, Axis: 1 day) | 1-4 business days |
| INDmoney | Few minutes | HDFC, Axis, Federal Bank | 8-24 hours |
| Appreciate | 5-6 minutes | Yes Bank (more banks in progress) | 8-24 hours |
Why invest in US Stocks?
investing in US stocks allows Indian investors to participate in the growth stories of global giants like Apple, Google, and Tesla, while diversifying beyond the Indian stock market.With platforms like Vested finance, INDmoney, and Appreciate simplifying the process, accessing US markets has never been easier.
Ready to take the plunge? Start your journey today and explore the world of US equities with confidence.
Indian Investors flock to U.S. Stocks: Trends, Costs, and Tax Implications
Indian investors are increasingly diversifying their portfolios by tapping into the U.S. stock market, driven by the allure of tech giants like NVIDIA and Tesla, as well as niche markets such as crypto ETFs and leveraged ETFs. Platforms like Vested Finance,INDmoney,and Appreciate are at the forefront of this trend,offering streamlined access to global markets.
Surging Interest in U.S. Stocks
trading volumes on Vested surged by 177% in 2024, reflecting the growing appetite for U.S. equities among Indian investors. “Tech stocks continue to dominate, but there’s growing interest in alternative investments like crypto etfs,” notes Shah.Appreciate, a relatively new player, has seen its average ticket size grow sevenfold since its launch last year. Investors on the platform typically execute 4-5 trades per month, with average liberalized Remittance Scheme (LRS) order values ranging from ₹9,000 to ₹10,000.
Costs and Charges: What Investors Need to Know
While setting up an account is free across platforms, transaction fees vary. Here’s a breakdown of the costs:
| Platform | Currency Conversion Fee | Brokerage Fee | Withdrawal Fee |
|———————|—————————–|—————————-|—————————-|
| INDmoney | 0.40% - 1.5% | 0.25% of trade amount | None |
| Vested Finance | 1-1.2% FX markup | 0.25% of trade amount + $5 | $5 per withdrawal |
| Appreciate | 1-1.2% FX markup | ₹5 or 0.05%, whichever is higher | None |
Investors should also consider tax implications when investing in U.S. stocks. Dividends are subject to a 25% withholding tax in the U.S., which can be claimed back or offset against Indian income tax liabilities.
Tax Implications for Indian Investors
Capital gains taxes are applied in india, not the U.S. Long-term capital gains (LTCG) tax is levied at 12.5% if stocks are held for over 24 months, while short-term capital gains (STCG) are taxed according to the investor’s income tax bracket.
Additionally, if annual remittances exceed ₹7 lakh, a 20% Tax Collected at Source (TCS) applies. This TCS can be claimed in the investor’s income tax return or adjusted against other tax liabilities.
The U.S. also imposes an estate duty on non-residents for balances exceeding $60,000. indian investors are required to report foreign assets and income in Schedule FA of their Income Tax Return. Non-compliance could result in penalties under the Black Money act.
Platforms Transforming Global Investing
Platforms like Vested Finance, INDmoney, and Appreciate are revolutionizing how Indian investors access U.S. markets. With streamlined KYC processes,integrated bank linking,and secure U.S. wallets, these platforms are making global investing more accessible and efficient.“We are actively working to ensure our customers can invest in the U.S. markets with minimal friction,” says a spokesperson from one of the leading platforms.
Final Thoughts
As Indian investors continue to explore U.S. stocks for diversification and growth, understanding the costs, taxes, and compliance requirements is crucial. Platforms like Vested Finance, INDmoney, and Appreciate are simplifying the process, but investors must stay informed to maximize their returns and avoid penalties.
For those looking to dive into the U.S. stock market, now is the time to leverage these platforms and capitalize on the opportunities they offer.For Indian investors looking to diversify their portfolios and tap into the growth of global giants, the Liberalized Remittance Scheme (LRS) route offers a reliable and straightforward gateway to the US stock market. Platforms facilitating this process ensure “low costs and maximum convenience,” as highlighted by Srivastav.
This approach allows investors to access a broader range of opportunities beyond domestic markets. As a notable example, while the Nifty 50 remains a popular choice, some experts like Pratik Oswal of Motilal Oswal AMC advocate for the Nifty 500 due to its broader exposure.
Here’s a quick comparison of the two indices:
| Index | Number of Stocks | Market Coverage | Risk Profile |
|——————|———————-|———————|——————|
| Nifty 50 | 50 | Large-cap focused | moderate |
| Nifty 500 | 500 | Broad market | Higher |
By leveraging the LRS route, investors can seamlessly invest in global markets, balancing their portfolios with both domestic and international assets. This strategy not only mitigates risk but also opens doors to high-growth opportunities.For those interested in exploring this further, platforms offering LRS services provide a user-friendly experience, ensuring that even novice investors can navigate the process with ease.As the global economy continues to evolve, diversifying investments through the US stock market is becoming an increasingly attractive option for Indian investors. Whether you’re a seasoned investor or just starting, the LRS route offers a practical solution to achieve your financial goals.
for more insights on investment strategies, check out why Pratik Oswal prefers the Nifty 500 over the Nifty 50.
Indian Investors Flock to U.S. Stocks: Trends, Costs, and Tax Implications
Indian investors are increasingly diversifying their portfolios by tapping into the U.S. stock market, driven by the allure of tech giants like NVIDIA and Tesla, and also niche markets such as crypto ETFs and leveraged ETFs.Platforms like Vested Finance, INDmoney, and appreciate are at the forefront of this trend, offering streamlined access to global markets.
Surging Interest in U.S. Stocks
Trading volumes on Vested surged by 177% in 2024, reflecting the growing appetite for U.S. equities among indian investors. “Tech stocks continue to dominate, but there’s growing interest in alternative investments like crypto ETFs,” notes Shah. Appreciate, a relatively new player, has seen its average ticket size grow sevenfold as its launch last year. Investors on the platform typically execute 4-5 trades per month, with average Liberalized Remittance Scheme (LRS) order values ranging from ₹9,000 to ₹10,000.
Costs and Charges: What Investors Need to Know
While setting up an account is free across platforms, transaction fees vary. Here’s a breakdown of the costs:
| Platform | Currency Conversion Fee | Brokerage Fee | Withdrawal Fee |
|———————-|—————————–|————————————–|—————————–|
| INDmoney | 0.40% – 1.5% | 0.25% of trade amount | None |
| Vested Finance | 1-1.2% FX markup | 0.25% of trade amount + $5 | $5 per withdrawal |
| Appreciate | 1-1.2% FX markup | ₹5 or 0.05%, whichever is higher | None |
Investors should also consider tax implications when investing in U.S. stocks. Dividends are subject to a 25% withholding tax in the U.S., which can be claimed back or offset against Indian income tax liabilities.
Tax Implications for Indian Investors
Capital gains taxes are applied in india, not the U.S. Long-term capital gains (LTCG) tax is levied at 12.5% if stocks are held for over 24 months, while short-term capital gains (STCG) are taxed according to the investor’s income tax bracket.
Additionally, if annual remittances exceed ₹7 lakh, a 20% Tax Collected at Source (TCS) applies. This TCS can be claimed in the investor’s income tax return or adjusted against other tax liabilities.
The U.S.also imposes an estate duty on non-residents for balances exceeding $60,000. Indian investors are required to report foreign assets and income in Schedule FA of their Income Tax Return. Non-compliance could result in penalties under the Black Money Act.
Platforms Transforming U.S. Investments
The platform creates a US Stock Wallet for seamless transactions in US-listed securities. This wallet, managed by broker-dealer DriveWealth, ensures secure transactions. fund transfers between your Indian bank account and the US wallet typically take 8-24 hours.
Ready to Invest
“once your LRS account is set up and funds are transferred, you can start investing in US equities,” explains Viram Shah, founder and CEO of Vested Finance. “The US wallet within the app is hosted with DriveWealth, a registered broker-dealer in the US, ensuring your investments are securely held in a US-regulated entity.”
Key Features at a Glance
| Platform | KYC Process | Bank Integration | Transfer Time |
|———————-|—————————–|————————————————————————————-|—————————-|
| Vested Finance | Under 5 minutes | Any Indian bank (HDFC, ICICI, Axis: 1 day) | 1-4 business days |
| INDmoney | Few minutes | HDFC, Axis, Federal Bank | 8-24 hours |
| Appreciate | 5-6 minutes | Yes Bank (more banks in progress) | 8-24 hours |
Why Invest in US Stocks?
Investing in US stocks allows Indian investors to participate in the growth stories of global giants like Apple, Google, and Tesla, while diversifying beyond the Indian stock market. with platforms like Vested Finance, INDmoney, and Appreciate simplifying the process, accessing US markets has never been easier.
Ready to take the plunge? Start your journey today and explore the world of US equities with confidence.
