Benefits of Investing in US Stocks from India: Why You Shouldn’t Miss Out

If you’re an Indian investor, you probably keep hearing friends talk about owning Apple, Tesla, or even the buzz around Nvidia. But beyond bragging rights, does investing in US markets really make sense? The short answer: yes. The long answer: it comes with multiple benefits that most Indian investors don’t fully realize.

Let’s break down in this blog the real advantages Indians can enjoy by adding US stocks to their portfolio, from dollar exposure to sectoral diversification, and even some lesser-known perks that can boost your returns.

Dollar Dreams: Hedge Against Rupee Depreciation

• Investing in US markets means your returns are in US dollars.
• Over the last 15 years, the rupee has steadily lost value against the dollar, from about ₹45 per USD in 2010 to over ₹86 in 2025.
• That depreciation itself boosts your INR returns, even if the stock doesn’t move much.

So suppose you invested $5 in Microsoft (MSFT) 15 years ago, assuming the stock didn’t move at all during this period, your investment still would have nearly doubled when converted into rupees, purely because of dollar appreciation. 

No Circuit Breakers on Gains: Ride the Big Moves

• Indian stocks have upper/lower circuits (5-20%) that limit how much a stock can move in a day. Good for risk control, but it caps upside too.
• US markets don’t have such strict daily limits. They use broader limit up-limit down rules and market-wide halts during crashes, but not to restrict daily gains.
• That means you can capture massive rallies overnight.

Like you must have heard about how recently Oracle (ORCL), a tech giant in the US, jumped nearly 50% in one day in September 2025 after its AI cloud deal. In India, such a move would have been spread across days due to circuit filters.

Diversification Beyond India

• By investing globally, you aren’t tied to India-specific risks like policy changes, inflation swings, or domestic demand slowdowns.
• You also gain access to industries that India lacks scale in, like semiconductors, biotech, and AI infrastructure.

Examples:

• Nvidia (NVDA) for chips & AI,
• Moderna (MRNA) for biotech,
• Amazon (AMZN) and Alphabet (GOOGL) for cloud.
• Palantir (PLTR) for defense & tech.
• Tesla (TSLA) for EV and Robotics.

These themes are just emerging in India, whereas they are in a high growth phase in the US. So diversifying beyond Indian markets will ensure that you get to enjoy the growth of these explosive themes.

The Mother Market Effect of the US

• The US is the largest and most liquid market globally, accounting for nearly half of global equity value.
• Trends there ripple outwards. When the Fed hikes or cuts rates, or when Apple posts earnings, it moves global investor sentiment.
• Having US exposure means you’re not just reacting to global shifts, you’re part of the action.

Think of it like this: Instead of watching the movie second-hand, you’re sitting in the front row where the script is written.

US Markets Gives Access to World’s Best Innovators

• The US is home to many of the most innovative companies of our time: Apple, Tesla, Microsoft, Meta, Amazon, Alphabet, Nvidia.
• These aren’t just companies; they’re shaping the way we live, work, and communicate.
• Most Indian companies are still catching up in these sectors, so investing directly in US names gives you exposure to global mega-trends early.
• Like Tesla (TSLA) in EVs or Nvidia (NVDA) in AI, trends that are still in their early phase in India.

Fractional Shares Make US Markets Accessible

• One myth is that US stocks are “too expensive” (Berkshire Hathaway trading at multiple crores a share).
• With fractional investing, you can buy as little as $1 worth of a stock.
• This lowers entry barriers for retail investors.
• Instead of needing thousands and lakhs, you can start with even just ₹1,000 and still own a slice.

Tax Relief via DTAA

• India and the US have a Double Tax Avoidance Agreement (DTAA).
• Dividends are taxed in the US, but you can claim credit in India, so you don’t pay double.
• For capital gains, you’re typically taxed only in India.

This makes US investing more tax-efficient than many Indians assume.

Things to Remember

Before you rush in, keep these in mind:

• Currency risk can go both ways (if rupee strengthens, gains look smaller).
• Costs like brokerage, conversion, and compliance exist.
• Time zone differences mean earnings updates often arrive late India-time.
• While US markets give access to a whole range of benefits, one mustn’t go all in. The point here is to get your hands on the best of both worlds.

For Indian investors, US markets offer a mix of global diversification, dollar exposure, access to innovation, liquidity, and even unique perks like fractional investing and tax credits. Add to that the fact that the US remains the trend-setter for global equities, and it’s clear: having US stocks in your portfolio isn’t just a luxury, it’s a smart long-term strategy.

Disclaimer:

The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities quoted are exemplary and are not a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument.The figures mentioned in this article are indicative and for general informational purposes only. Readers are encouraged to verify the exact numbers and financial data from official sources such as company filings, earnings reports, and financial news platforms. The Company strongly encourages its users/viewers to conduct their own research, and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. Registered office address: Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355. IFSCA Broker-Dealer Registration No. IFSC/BD/2023-24/0016, IFSCA DP Reg No: IFSC/DP/2023-24/010.