Why Gen Z Is Investing In US Stocks
They don’t just want better returns — they’re looking for global opportunities, more variety and smarter ways to grow their money, notes Soubho Moulik, CEO, Appreciate.
Young Indians aren’t just investing in India anymore; they’re also putting their money into big US companies like Apple, Amazon and Tesla.
And no, you don’t need to be rich to do this.
Since 2021, over 2.5 million Indians have started investing in US stocks. They don’t just want better returns — they’re looking for global opportunities, more variety and smarter ways to grow their money.
Why are Indians investing outside India?
1. Better returns in some cases
The Indian stock market is giving decent returns in 2025 but the US market — especially the S&P 500, which includes top American companies — has often done even better. By investing in both India and the US, Gen Z investors are spreading their risk and chasing higher growth.
2. The rupee keeps falling
Over time, the Indian rupee is slowly losing value compared to the US dollar. For example, what Rs 70 could buy in dollars a few years ago might now cost Rs 85 or more.
So when you invest in US stocks (which are in dollars) and the rupee weakens further, your investment becomes even more valuable when you convert it back to rupees later.
This extra benefit is called currency gain. It means your money doesn’t just grow because the stock went up — it also grows because the dollar became stronger than the rupee.
That’s one of the big reasons young Indians are looking beyond just Indian markets.
3. US companies are global leaders
Let’s be honest — some of the world’s most exciting companies are American:
- Apple
- Microsoft
- Google (Alphabet)
- Amazon
- Nvidia
- Meta (Facebook/Instagram)
- Tesla
These companies are leading in AI, EVs, space and the metaverse. Indian stock markets don’t give you access to most of these yet.
The LRS — and why it matters
If you’re investing in the US from India, you’re doing it under something called the Liberalised Remittance Scheme (LRS).
Under LRS, every Indian resident can send up to $250,000 per financial year abroad for things like education, travel — and yes, investing in foreign stocks.
So if you’re using an app to invest in US stocks, that money is sent using LRS. It’s legal and it’s regulated by the Reserve Bank of India.
Do note: You may have to fill out an LRS form and some banks/platforms might charge a small TCS (tax collected at source) but it’s all built into most fintech apps now.
What is fractional investing?
Say one share of Amazon costs $3,000 and you don’t have that kind of money. With fractional investing, you can buy a slice of that share — say, Rs 500 worth of Amazon stock.
It’s like buying part of a pizza slice instead of the whole pizza. This way, you can invest small amounts in expensive companies and still get exposure to their growth.
As a result, Gen Z investors are building global portfolios with as little as Rs 100 without waiting to become ‘rich.’
Fintech is making it super easy
A few years ago, global investing was hard. Today, all you need is:
- A PAN card
- A bank account
- A few hundred rupees
- A fintech app (like Vested, INDmoney, Groww, Cube, etc)
These apps do everything for you — currency conversion, LRS paperwork and even tax reports. You just log in, pick your stocks or ETFs and invest.
What Gen Z is learning
At first, young investors rushed to buy big names — Apple, Tesla, etc. But when the US markets dipped in early 2025, they learned some hard truths — even big companies can go down.
Now, smarter Gen Z investors are:
- Spreading their money across sectors
- Using ETFs (baskets of many stocks)
- Thinking long-term, not chasing quick gains
Why global investing makes sense
If India’s economy faces a bad year, your entire local portfolio could suffer. But if you’ve also invested in US stocks, your risks are more balanced.
Plus, India doesn’t yet have enough companies in hot, global sectors like:
- AI
- Cloud computing
- Space tech
- Robotics
US markets offer exposure to all of them.
What’s next?
The NSE IFSC (National Stock Exchange’s International Financial Services Centre) platform in GIFT City (a new financial zone in Gandhinagar, Gujarat) is making it even easier to buy US stocks directly from India, with fewer fees and simpler rules.
Global is the new normal
You don’t need to choose between investing in India or the US anymore. You can do both.
If you’re earning online, saving, investing or planning for the long term, global investing is something you should consider.
Whether it’s Rs 500 or Rs 5,000 — don’t just scroll past companies like Tesla or Nvidia. You can own a small piece of them today.
Smart investing isn’t about timing the market. It’s about starting early and staying consistent — across time zones, currencies, and continents.
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