Diversify beyond borders. Invest in global giants like Apple, Google, and Tesla. Utilize the LRS route to build a dollar-denominated portfolio.
Indian markets constitute only ~3% of global market cap. Investing globally reduces "Home Country Bias" and protects against domestic volatility.
Historically, the INR has depreciated against the USD. Investing in US assets gives you the dual benefit of asset appreciation + currency gain.
Indian Mutual Funds that invest in international stocks/ETFs. Easiest route, no separate bank account needed.
RBI allows resident individuals to remit up to $250,000 per financial year for investments abroad. We help set up your US brokerage account.
New route via NSE International Exchange to buy select US stocks directly.
Under LRS, Tax Collected at Source (TCS) of 20% applies on remittances above ₹7 Lakhs in a financial year. This TCS can be claimed as a refund or credit when filing your Income Tax Return.
Gains from foreign stocks are treated as per your income tax slab (Short Term < 24 months) or taxed at 12.5% without indexation (Long Term > 24 months) as per recent budget updates.
| Feature | Feeder Mutual Funds | Direct LRS Investing | GIFT City / IFSC |
|---|---|---|---|
| Minimum investment | As low as a regular mutual fund SIP | Effectively whatever a foreign brokerage requires, often higher | Varies by product, typically designed for larger tickets |
| Who picks the holdings | A fund manager, via a feeder structure into an overseas fund | You, buying individual foreign stocks or ETFs yourself | Depends on the specific IFSC-based fund or structure chosen |
| Currency handling | Rupee in, rupee out — fund handles the conversion | You convert rupees to foreign currency yourself under LRS | Often structured in foreign currency from the start |
| Effort and complexity | Low — invest like any other mutual fund | Higher — foreign brokerage account, LRS paperwork, ongoing tracking | Low to moderate, depending on structure |
| Best suited for | Investors who want global exposure without opening a foreign account | Investors who want to pick specific global stocks directly | Investors and NRIs looking for IFSC-based structuring options |
Investors who already have a solid domestic core and want geographic and currency diversification, and who are comfortable with the compliance and TCS mechanics involved.
Investors who have not yet built adequate domestic diversification, or for whom the added currency and cross-border tax complexity would outweigh the diversification benefit at their current portfolio size.
Money n Wealth can help decide whether international exposure improves the overall portfolio, then compare feeder funds, direct LRS access and IFSC-based structures against the investor's goals, tax position and preferred level of involvement.