Indians are increasingly sending money abroad to invest in stock and debt securities. According to recent RBI data, Indians’ overall investment in equity and debt climbed from $306.30 million in March 2025 to $440.22 million in March 2026 — a year-on-year jump of 43.7%.
Foreign investments become attractive when the Indian rupee depreciates significantly against the US dollar. Illustratively, let us assume one invests Rs 1 lakh in US stocks when the INR-USD exchange rate is Rs 85. Assuming the US stocks generate no return after a year when the exchange rate is Rs 95, the investor still ends up with a gain of 11.7%. INR has historically deprecated agaisnt dollar.
In the last year, returns in the BSE 500 index have been flat, while the S&P 500, the leading barometer of the US stock market, is up 28% in dollar terms. During the same period, INR has depreciated 12% against USD, adding to returns for the Indian investor.
If you are wondering where to start investing abroad, here’s a lowdown on the various options available to Indian investors.
International MF
Almost all mutual fund AMCs offer international funds to Indian investors. Some of those funds offer limited exposure to global stocks, while others provide higher access to foreign markets.
Typically, most of these international funds are feeder funds. An international feeder fund receives funds from Indian investors to invest overseas and therefore is a ‘Fund of Funds.’
Essentially, it does not invest directly in foreign securities; instead, it makes investments through its parent fund. The parent fund puts the money into international firms. An international feeder fund may be country-specific, region-specific, or theme-based.
Also called Global Funds or International Fund of Funds, they invest in funds available in foreign jurisdictions outside of India, exposing investors to companies listed in other countries.
For example, an Emerging Markets Fund will provide you with exposure to several equities listed in countries such as Taiwan and South Korea, among others. Similarly, a Developed Markets Fund will expose you to the United States, Europe, Canada, Japan, and so on. Investing in Global Funds allows you to overcome home bias, or the tendency to overinvest in domestic assets.
You can invest in an international feeder fund in the same way you would any other mutual fund scheme. You can invest both online and offline, directly or through a mutual fund distributor, into direct or regular plans, as per your convenience.
But there’s a challenge being faced by Indian investors while investing through these global funds. SEBI has put restrictions on fund houses as investing abroad requires dollars to be purchased using Indian rupees.
There is an industry limit for international funds and a separate limit for each fund house garnering money for overseas funds. According to SEBI regulations, the total amount of foreign investment in the mutual fund industry is capped at US$7 billion. Any mutual fund house may hold a total of $1 billion USD in foreign interests.
The SEBI limit on overseas funds has been in place since February 02, 2022, but occasionally fund houses open their schemes when the AUM falls below the mandated limit. Most funds open or keep their SIP subscriptions available to investors most of the time.
Global ETF
If not international funds, there are global ETFs that invest in the US stock market available to Indian investors. An ETF is a low-cost mutual fund that tracks an index, allowing investors to simultaneously buy all stocks in the same proportion as the index. One can invest in global ETFs through their existing demat account.
Brokerage platforms
If you want to buy global stocks or ETF’s, there are authorised international brokerage firms as well that allow you to buy your favourite US stocks sitting at home in India. From getting the RBI clearances to finding the right bank account in the US and opening an account, these international brokerage companies make it a one-stop shop for you. Once the US stock account is opened, with a few clicks, you can start trading in international stocks.
NSE IX
Another emerging option to invest in global stocks is the NSE IX (NSE International Exchange), a fully owned subsidiary company of National Stock Exchange of India Limited (NSE), currently regulated by IFSCA. NSE IX allows Indian residents and non-resident investors to own US stocks from India.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to consult a SEBI-registered financial advisor before making any international investment decisions.