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.
We assess your existing domestic diversification, goals, ticket size and comfort with paperwork to recommend feeder funds, direct LRS investing, GIFT City, or a mix.
Direct LRS investing typically needs PAN details, a bank LRS declaration (Form A2/15CA-CB where applicable), and KYC with an overseas or IFSC-linked brokerage. Feeder funds need no extra paperwork beyond a regular mutual fund purchase.
Funds are remitted or invested, with TCS applied where applicable and tracked for your tax credit.
We help you monitor the portfolio alongside your domestic holdings and ensure Schedule FA and other disclosures are handled correctly at tax time.
Under LRS, Tax Collected at Source (TCS) of 20% applies on remittances above ₹10 Lakhs in a financial year (raised from the earlier ₹7 Lakh threshold, effective April 1, 2026). Below ₹10 Lakhs, no TCS applies. 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.
Foreign stocks, ETFs or brokerage accounts held under LRS must be reported in Schedule FA (Foreign Assets) of your Income Tax Return, even in years with no taxable gain. Non-disclosure can attract penalties under the Black Money Act — a compliance step investors often overlook.
Dividends from US stocks are withheld at 25% at source (reduced from the standard 30% under the India-US tax treaty) before reaching your account. This can typically be claimed as a foreign tax credit against Indian tax liability, subject to conditions.
Indian investors are treated as Non-Resident Aliens for US estate tax purposes, which applies to US-situated assets — including directly held US stocks and ETFs — above a USD 60,000 exemption, regardless of whether they're held via an overseas broker, an LRS-linked account, or an Indian brokerage's US-investing platform. Rates escalate from 18% to 40% at higher values. Feeder mutual funds work differently — investors own units of an Indian fund rather than the underlying US shares directly — so they generally fall outside this exposure. This is an important factor when choosing between direct stock-picking and feeder funds for larger allocations.
While the INR has historically depreciated against the USD, currency movements aren't guaranteed to continue in the same direction — a stronger rupee at redemption can offset investment gains.
LRS limits, TCS rates and reporting rules have changed multiple times in recent years, most recently the TCS threshold increase in Budget 2026, and can change again — plan global allocations with this in mind.
Feeder funds typically carry higher total expense ratios than a directly-held US-listed index ETF, since Indian fund management costs sit on top of the underlying fund's own costs.
| 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.
No — LRS is only available to resident Indian individuals. NRIs use different routes depending on their country of residence; talk to us about the right structure for your status.
Feeder mutual funds follow standard mutual fund liquidity, with exit load possible on early redemption. Direct stock/ETF holdings via LRS have no lock-in beyond your brokerage's own settlement timelines.
Withheld at 25% at source under the India-US tax treaty, generally claimable as a foreign tax credit in India.
Feeder funds can start as low as a regular SIP; direct LRS investing is practical from a higher ticket size given brokerage and remittance overheads; GIFT City products are typically designed for larger allocations.