June 2, 2025 - Over the last few years, more and more Indian investors are looking beyond domestic markets to explore opportunities across the globe. With major companies like Apple, Google, Tesla, and Amazon listed overseas, the idea of global investment has moved from being a niche interest to a mainstream strategy.

Whether it's to hedge against currency fluctuations, access better returns, or simply diversify your portfolio, investing internationally offers plenty of benefits. And thanks to modern digital platforms, opening up to the global markets is now more accessible than ever - even for retail investors in India.

Here's how you can get started and what you need to know.

Why Are Indian Investors Exploring Global Markets?

There was a time when most Indian investors focused solely on domestic equities, mutual funds, and real estate. But today's market-savvy individuals understand that true diversification means spreading your money across geographies and sectors.

Here are a few reasons why global investment is gaining popularity in India:

• Access to high-growth sectors like AI, biotech, cloud computing, and electric vehicles
• Geographical diversification, which helps reduce country-specific risk
• Currency advantage, especially with the rupee generally depreciating over the long term
• Participation in globally renowned companies that may not have Indian equivalents
• Greater transparency and access to global financial information online

In short, international investing allows you to own a piece of the world's biggest success stories, beyond just the Sensex and Nifty.

Can Indians Legally Invest in Foreign Stocks?

Yes. Under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), resident individuals are allowed to invest up to USD 250,000 per financial year in foreign assets. This includes:

• International stocks and ETFs
• Real estate
• Mutual funds or bonds listed overseas
• Setting up foreign businesses

The funds can be transferred from your regular Indian savings account to a foreign brokerage via approved banking channels. You don't need any special permission if you stay within the prescribed limit.

What You Need to Start Investing Globally

If you're planning to start your global investment journey, here are the basics you'll need:

1. A Demat Account (International Access)

Your regular Indian Demat account won't allow you to buy foreign stocks. You'll either need to:

• Open a global Demat account with an Indian broker that has tie-ups with foreign platforms (e.g., ICICI Direct, HDFC Securities, or Axis Bank), or
• Sign up for a foreign investment platform like Vested, INDMoney, or Cube Wealth, which partners with US-based brokers.

These platforms are SEBI-compliant and designed to meet RBI's guidelines for outward remittance and KYC.

2. A Bank Account That Supports International Transfers

You'll need a bank account that can facilitate outward remittances under the LRS. Most private and public sector banks in India allow this. You will be required to fill up an A2 form and submit identity documents during the transfer process.

3. PAN Card and Other KYC Documents

Your PAN card, Aadhaar, and proof of address will be required for account opening and overseas fund transfers. Ensure your name matches across documents to avoid delays.

How to Open a Global Demat Account

Here's a step-by-step guide to opening a global Demat account and beginning to invest in international markets:

• Select a platform – Choose an Indian or foreign-based broker that offers international stock investing.
• Complete the sign-up process – Upload your PAN, address proof, passport (if required), and bank details.
• Enable international investment access – Some platforms require separate consent for global access.
• Fund your account – Initiate outward remittance through your bank's LRS process.
• Start investing – Once funds reflect, you can begin buying global stocks, ETFs, or fractional shares.

Note: Fractional shares allow you to buy a small portion of high-priced stocks like Amazon or Tesla, making global investing more affordable.

What Can You Invest In?

With a global brokerage account, you can invest in:

• US stocks (e.g., Google, Microsoft, Netflix)
• International ETFs (e.g., S&P 500, NASDAQ 100)
• ADR/GDRs (Global listings of Indian or other companies)
• Foreign mutual funds or bonds
• Thematic portfolios curated by global advisors

The best part is that you can invest in USD and track global performance, often with no minimum investment amount.

Tax Implications for Indian Investors

Profits from global investment are taxed differently from domestic ones. Here's a quick overview:

• Capital gains from foreign stocks are taxed as per your income slab if sold within 24 months (short-term).
• Long-term capital gains (after 24 months) are taxed at 20% with indexation benefit.
• Dividends from foreign stocks are added to your income and taxed at your applicable rate. However, you can claim relief under Double Taxation Avoidance Agreements (DTAA).

You must also report these investments when filing your income tax returns under the foreign asset disclosure section.

Benefits of Global Investment from India

Venturing into international investing offers several advantages:

• Diversification: Reduces reliance on Indian markets alone.
• Exposure to innovation: Invest in sectors not available in India.
• Potential currency gains: A falling rupee boosts returns on USD-based investments.
• Access to fractional ownership: Start small and still own big global names.
• Better risk management: Spread investments across economies

Global investing helps build a more balanced portfolio and can serve as a hedge against local market volatility.

Things to Keep in Mind

Before you begin your global investing journey, consider the following:

• Currency conversion charges may apply while transferring funds.
• Brokerage and transaction fees differ between platforms - read the terms carefully.
• Market hours may differ; most global markets don't follow Indian time zones.
• Research is crucial - don't invest blindly in international stocks
• Understand taxation - consult a CA if you're unsure about foreign asset declarations.

Start with small investments, learn the process, and scale up as your confidence grows.

Final Thoughts

With seamless online platforms and simplified regulations, global investment is no longer limited to a few. Indian investors can now access international stocks, ETFs, and funds with ease. Whether you want to invest in the biggest global companies or balance your portfolio across geographies, the right tools and planning can take you a long way.

All you need is a trusted platform, a compliant Demat account, and a willingness to look beyond borders. If you're ready to diversify smartly, start your global investment journey today - because the world of opportunity is now open to you.

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