How to Invest in US Stocks from India in 2026 (4 Routes Compared)

By Nitish Bharadwaj · Published May 22, 2026 · 5 min

Indians can invest in US stocks through four main routes: direct investment via platforms like Vested or INDmoney under the LRS $250,000 annual limit, US-focused mutual funds in Indian rupees, Fund of Funds investing in US ETFs, and international ETFs listed on NSE. This guide compares each route on tax treatment, currency risk, cost, minimum investment, and the practical steps to get started in 2026.

The S&P 500 has historically returned roughly 12-13% annually in USD over the past decade, and rupee depreciation has added a few percentage points to INR returns (past performance is no guarantee). As an Indian investor, you can now access US stocks through multiple routes.

Your Options to Invest in US Stocks

  • US-focused mutual funds in India (Mirae Asset S&P 500 ETF, Edelweiss US Technology ETF) — most convenient, no KYC hassle
  • Direct investment via apps (INDmoney, Vested, Groww) — buy fractional shares of Apple, Google, Amazon
  • International brokers (Interactive Brokers) — full access but complex setup
  • Fund of Funds (FOF) — Indian fund investing in a US fund — slightly higher expense ratio
US Investing Routes Compared
RouteTax TreatmentMin InvestmentComplexity
Indian MF (US index/FoF)Always taxed at your slab rate, any holding period — no LTCG or indexation (funds under 35% Indian equity, since April 2023)₹500 SIPLow
Direct stocks (Vested/INDmoney)12.5% LTCG after 24 months (slab if sooner)$1 fractional shareMedium
Interactive Brokers12.5% LTCG after 24 months (slab if sooner)$1 fractional shareHigh

Our Recommendation

For most Indian investors, a Nifty 50 index + S&P 500 index fund combination (80% India + 20% US) is the optimal global portfolio. Use Mirae Asset S&P 500 ETF or Motilal Oswal S&P 500 Index Fund for the US allocation — no LRS hassle, SIP-compatible, low expense ratio. This is the international diversification leg of a ₹1 crore portfolio plan.

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