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A Step-by-Step Guide on How to Buy US Stocks From India

By admin / August 16, 2025

Globalization has blurred the boundaries of investment, and many Indian investors are looking beyond domestic equities to gain exposure to international markets. If you are wondering how to buy US stocks from India, this article provides a comprehensive, step-by-step guide.

Step 1: Understand Why You Want to Invest

Before diving in, clarify your investment objective. Are you seeking long-term wealth building, diversification, or exposure to specific industries such as technology and healthcare? Identifying your goal will shape the type of stocks or funds you should consider.

Step 2: Learn the Basics of International Investing

Investing abroad isn’t the same as investing domestically. You’ll need to account for foreign exchange rates, cross-border taxation, and compliance with India’s Liberalized Remittance Scheme (LRS). These factors can significantly influence your returns over time.

Step 3: Choose Your Mode of Investment

  • International Brokerage Accounts: These give you direct access to the New York Stock Exchange (NYSE) or NASDAQ. You can buy shares of leading US companies just like domestic stocks.
  • Indian Brokerage Tie-Ups: Several Indian brokers have tie-ups with global partners, allowing indirect access to foreign markets.
  • Mutual Funds and ETFs: For those not comfortable selecting individual stocks, international funds offer diversified exposure to US indices like the S&P 500 or Nasdaq-100.

Step 4: Set Up Your Account and Transfer Funds

Opening an account with an international broker usually requires documentation like a PAN card, proof of address, and identity verification. Funds are remitted under the LRS guidelines, and transfers are typically executed in USD.

Step 5: Select Stocks or Funds

Do thorough research before buying. Focus on fundamentals like company earnings, growth potential, and industry trends. You can also consider ETFs that track indices such as the S&P 500 for diversified exposure.

Step 6: Stay Updated and Monitor Investments

Global markets move quickly. Regularly track your portfolio and adjust allocations as needed. It’s important to review both market performance and currency fluctuations.

Tax Considerations

  • Dividends from US companies are subject to withholding tax.
  • Capital gains are taxable in India depending on your holding period.
  • Double taxation can often be mitigated by claiming credit under the Double Taxation Avoidance Agreement (DTAA).

Common Mistakes to Avoid

  • Putting all funds into a single stock without diversification.
  • Ignoring the effect of exchange rates.
  • Overlooking tax planning during the redemption process.

Conclusion

With proper planning and understanding, buying US equities is now straightforward for Indian investors. Knowing exactly how to buy US stocks from India ensures that you can expand your portfolio globally, diversify risk, and align your investments with global economic growth.

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