Global investing: Here is all that Indian investors need to know

Global investing has emerged as one of the most discussed themes among Indian investors in 2025. While the idea of investing overseas is not new, interest has sharpened over the past year.

Viram Shah, co-founder and CEO of global investing platform Vested Finance, says global investing has come into sharper focus because domestic markets have plateaued and currency movements have made overseas exposure more relevant.

At the same time, regulatory developments have made global investing structurally easier such as the Overseas Investment Regulations in 2022, the steady expansion of the Liberalized Remittance Scheme, and the rise of GIFT City as a regulated offshore financial hub.

Indian investors now have multiple avenues to access global markets, each with its own products, platforms, costs, taxation rules, and risks. Understanding these options is crucial before investing.

1) Buying Overseas-Listed Stocks

Buying overseas-listed stocks is the most direct form of global investing. Investors own shares of companies listed on foreign exchanges such as the NYSE or Nasdaq — for example, Apple, Tesla, Nvidia, Microsoft, and Amazon.

Platforms that offer this: Investors can use specialized global investing platforms like Vested Finance, INDMoney, Appreciate as well as domestic brokerages also provide opportunities by partnering with established international platforms. For example, ICICI Direct and Kotak Securities offer global market access through Interactive Brokers, allowing investors to trade in multiple international markets such as the US, UK, Europe, and Asia. Axis Securities provides access to US listed securities via Vested Finance (VF Securities). For these platforms investors need to open a Global Investing Account through the brokerage’s websites.

Some platforms also allow the purchase of fractional shares, making high-priced global stocks more accessible.

How it works: Investors complete KYC, open an overseas trading and custodial account, and remit funds under the LRS (maximum $ 250,000). Securities are held electronically with an international custodian, they are not part of the Indian demat account.

Costs and risks:

Brokerage: Some platforms charge flat fees or follow a tiered pricing model. For example, Vested charges 0.15% of the trade value (max capped) for premium plan users, and 0.25% (max capped) for users on the basic plan.

FX Conversion Costs: The spread on FX Remittance under LRS from banks would be in the range of 50-75 basis points.

Taxation Capital Gains:

Short-Term (Less than 24 months): Taxed at your individual slab rate

Long-Term (More than 24 months): From July 2024 onwards, 12.5% (plus cess and surcharge) without indexation

Dividends: Taxed in India at your slab rate (You can claim foreign tax credit in India under the DTAA)

TCS (Tax Collected at Source): For foreign remittances made for investments under the Liberalised Remittance Scheme (LRS), TCS (Tax Collected at Source) is applicable when the total remittance in a financial year exceeds Rs 10 lakh. The bank or authorized dealer collects 20% TCS on the amount exceeding this threshold at the time of sending the money. This TCS is credited to your PAN and can be adjusted against your income tax liability when filing returns, or refunded if your tax liability is lower. For example: If you remit Rs 15 lakh abroad for investments in a financial year, TCS is applicable only on the Rs 5 lakh exceeding the Rs 10 lakh threshold. At a 20% rate, the bank would collect Rs 1 lakh as TCS, which you can later claim as tax credit while filing your income tax return. While TCS does not reduce your long-term investment returns, it may temporarily affect liquidity until the credit is claimed.

Estate Tax: US Estate Tax applies if your US-based assets exceed $60,000. Estate tax can go up to 40% for non-residents.

2) Investing in Global ETFs

Exchange-traded funds (ETFs) allow investors to gain diversified exposure to global indices or sectors without selecting individual stocks.

India-Listed Global ETFs

These ETFs are listed on Indian exchanges and accessible in INR without remitting money abroad. Funds include Motilal Oswal NASDAQ 100 ETF, Mirae Asset NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF and Nippon India ETF Hang Seng BeES.

Platforms: Accessible via domestic brokers such as Zerodha, ICICI Direct, HDFC Securities, Kotak, Axis Securities as well as mutual fund direct platforms. You can only buy or sell shares from other investors on the stock exchange as new units aren’t made for retail buyers.

Costs:

No FX or brokerage charges for investors — investments are made in INR through Indian fund houses.

Taxation: Same as US Stocks and ETFs

TCS: Not applicable, since investment is domestic (no LRS remittance).

Overseas-Listed ETFs

These ETFs are listed on foreign exchanges, for example, SPDR S&P 500 ETF, Vanguard Total Stock Market ETF, iShares MSCI Emerging Markets ETF.

Platforms: Investors use platforms like Vested Finance, INDMoney, Appreciate, ICICI Direct, Axis, Kotak, HDFC Securities.

Costs and Taxation: Same as direct stocks.

3) India-Domiciled Global Mutual Funds and Fund-of-Funds (FoFs)

These funds allow investors to gain global exposure in INR without remitting money abroad. The fund manager invests overseas on behalf of the investor.

Various AMCs offer products investing in global stocks. Currently not all funds are open for subscription.

Products available: There are around 20 funds currently open to investment including Motilal Oswal Nasdaq 100 FoF, Motilal Oswal S&P 500 Index FoF, Franklin India Feeder – Franklin US Opportunities Fund, Edelweiss US Technology Equity FoF, Edelweiss Greater China Equity Offshore Fund, PGIM India Global Equity Opportunities Fund, Invesco India – Invesco Global Equity Income FoF, Axis Global Equity Alpha FoF, Kotak Nasdaq 100 FoF

Costs: Expense ratio is based on fund and are within the range of 0.5% and 1.2 percent along with currency and market risk embedded in NAV.

Expense Ratio: Passive index FoFs: ~0.5% to 1%

Actively managed or feeder funds: can go up to 1.5–2% (This includes both the domestic FoF fee and underlying global fund expense)

Taxation: These funds are best for investors seeking global exposure within Indian compliance and under Indian currency rates.

4) Investing via GIFT City (IFSC)

GIFT City is a regulated offshore financial hub in India offering retail funds, AIFs, and PMS products under the LRS.

Platforms / Intermediaries: Anand Rathi International, IIFL Securities IFSC, Invest Global, Bigul (ViewTrade) are some of the platforms available. Apart from this, mutual funds through their IFSC Subsidiaries allow for global fund investing.

How do you open accounts, and what is the process?

Investing via GIFT City requires opening separate IFSC-specific accounts, which are different from regular Indian demat or mutual fund accounts. Investors must open an investment or trading account with an IFSC-registered intermediary and a dollar-denominated bank account in GIFT City. This structure is mandatory as all investments are dollar-denominated. At present, account opening is largely physical or hybrid. Fully digital onboarding is not yet widely available across IFSC entities.

Most major banks have IFSC branches with specific costs attached. For example, ICICI Bank’s IFSC USD account has no account opening fees and requires a minimum balance of $1,000, with annual maintenance charges of around $25–$50, depending on the account type. HDFC Bank’s GIFT City USD savings account similarly offers a low minimum balance of $500 and charges $30 per year as AMC, For IDFC First Bank in GIFT City, the Global Savings Account (IFSC) comes with zero account opening fees and no annual maintenance charges (AMC). This account is specifically designed for offshore currency banking under the IFSC framework and allows eligible residents or NRIs to hold US dollars or euros, remit funds for global investments, and earn interest (for example, around 4.75% per annum on  $ deposits).

Transaction fees for remittances or fund transfers typically range from 0.5% to 0.75% of the transaction amount, depending on the bank. FX conversion costs apply at the time of remittance from an INR savings account to a GIFT City account.

Investors are required to complete KYC, and LRS documentation (including Form A2), along with submitting PAN, passport, and address proof. The account opening process typically takes two to four weeks.

Cost of Investment: GIFT City (IFSC) offers a wide range of global investment products catering to different investor categories:

• Alternative Investment Funds (AIFs): Minimum investment of  $150,000. These can be close-ended or open-ended funds.
• Portfolio Management Services (PMS): Minimum investment of $75,000, offering discretionary global investment strategies.
• Retail-focused Mutual Funds: Minimum investments are usually around $5,000, making them accessible to retail investors.

Currently for Indian retail investors, the only outbound fund is DSP Global Equity Fund. The dollar-denominated fund has a minimum investment of $5,000, with additional investments permitted from $500, and provides diversified exposure to global equities, primarily across developed markets such as the US and Europe. The fund follows a combination of overseas fund investments and direct global equity exposure, with allocations across sectors including technology, consumer, healthcare, and financials. The expense ratio is approximately 1.75% for the regular plan and around 1.00% for the direct plan.

Apart from DSP, Edelweiss Mutual Fund is launching the Edelweiss Greater China Equity Off-Shore Fund (GIFT City), a feeder fund that provides Indian retail investors access to equities across Mainland China, Hong Kong, and Taiwan by investing into the JPMorgan Funds – Greater China Fund (Luxembourg SICAV). The fund requires a minimum investment of $5,000 with top-ups from $1,000, carries an expense ratio of 0.50% for the direct plan and 1.50% for the regular plan (excluding underlying fees), and has no exit load, enabling diversified exposure to technology, consumer discretionary, and financial sectors in the Greater China region.

PPFAS Asset Management has also received approval for two IFSC outbound passive funds: the Parag Parikh IFSC S&P 500 Fund of Fund and the Parag Parikh IFSC Nasdaq 100 Fund of Fund, each with a minimum investment of $5,000 and $500 top-ups, no lock-in or exit load, and total expense ratios of 0.30% for direct (Class A) and 0.60% for regular (Class B) plans.

Fund Management Costs

•  AIFs / PMS: Management fees generally range between 1.5% – 2%, depending on the fund strategy and structure. What investors should watch out for:

Niteen D, Director & CEO GIFT City IFSC Business explains that overall tor investments in global or US equities through GIFT City platforms, investors should also factor in:

• Annual Maintenance Charges
• Demat account charges (where applicable)

In the case of global access platforms such as INDMoney, investors may not need to pay demat account charges, annual maintenance charges, or trading account opening fees. However, they do pay brokerage or commission on each trade, or charges linked to the value or volume of trades executed.

Currency Risk

Investors should note that global investments are affected by changes in the rupee–dollar exchange rate. If the rupee weakens against the dollar, returns in rupee terms can increase, while a stronger rupee can reduce returns, even if the global investment performs well.

FA disclosures

FA is a mandatory disclosure for resident and ordinarily resident (ROR) taxpayers who hold any foreign assets or financial interests outside India during the relevant financial year. Under this disclosure, taxpayers must report details such as foreign bank accounts, shares, securities, mutual funds, insurance policies, immovable property, and any income earned from these assets, even if the income is exempt or not taxable in India. Schedule FA is aimed at ensuring transparency and preventing the concealment of overseas assets, and non-disclosure can attract severe penalties under the Income Tax Act and the Black Money Act.

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