With the Indian rupee navigating new valuation ranges and global tech companies reporting record earnings, diversifying into international assets has become a necessity for the portfolio.
Here are the five primary ways Indian investors can deploy capital into global markets today.
International Mutual Funds and FOFs
The most accessible entry point for retail investors remains International Mutual Funds or Funds of Funds (FoFs). These are Indian-domiciled schemes that either invest directly in foreign stocks or in an underlying global fund.
You invest in Indian Rupees (INR), meaning you don’t need a foreign bank account or a complex remittance process. Popular options include the Motilal Oswal Nasdaq 100 FoF or the Nippon India Taiwan Equity Fund, which has seen a massive surge in interest due to the global semiconductor boom.
Direct Investing Via Domestic Platforms
Several Indian fintech platforms, such as INDmoney, Groww, and Vested, have partnered with U.S.-based brokers to allow Indians to buy stocks such as Apple, Nvidia, and Tesla directly.
Unlike the Indian market, U.S. exchanges allow fractional ownership, meaning you can buy $10 worth of a high-priced stock. These platforms automate the LRS (Liberalised Remittance Scheme) documentation, making the transfer of funds to a U.S. brokerage account seamless.
Exchange Traded Funds (ETFs)
Investors can buy international ETFs directly on Indian stock exchanges, NSE and BSE. These act like stocks and track global indices.
The Mirae Asset NYSE FANG+ ETF or the ICICI Prudential S&P 500 Index Fund allows investors to bet on the broad U.S. economy without picking individual stocks. Investors should monitor the tracking error and liquidity of these ETFs on Indian exchanges to ensure they are trading close to their actual Net Asset Value (NAV).
Liberalised Remittance Scheme (LRS)
For high-net-worth individuals (HNIs), the RBI’s LRS route allows for the remittance of up to $250,000 per financial year for overseas investments. This route allows you to open a full-service international brokerage account, with firms like Charles Schwab or Interactive Brokers, offering access to not just U.S. stocks, but also European and Asian markets, bonds, and even real estate.
Global Multi-Asset Allocation Funds
A newer category of “Hybrid” funds in India now allocates a portion of their corpus (usually 20-30%) to international equities while keeping the rest in domestic equity and debt.
This is ideal for conservative investors who want “passive” international exposure without the volatility of a 100% foreign equity fund.
The Tax Angle
Investors must be mindful of the tax implications that evolved in the Budget 2026:
LRS and TCS: For remittances exceeding ₹10 lakh for investment purposes, a 20% TCS applies. While this is not an additional tax and can be claimed back during ITR filing, it does lead to a significant upfront cash-flow blockage.
Capital Gains: As per current rules, international mutual funds are treated as non-equity for tax purposes if their domestic equity exposure is less than 35%. Gains are generally taxed at your applicable income tax slab if held for less than 24 months, and at 12.5% if held longer.