Indians are investing more in international equity, debt than ever before. Latest RBI data on Data on outward remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals shows, outwards remittance is nearly $ 19610.77 million in 2021-22 compared to $ 18760.69 million in 2019-20. Of the total remittances sent abroad, share of investments in equity, debt has gone up from $ 431.41 million in 2019-20 to $ 746.57 million in 2021-22.
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Whether you are considering investing abroad, going on an international vacation or even sending your children for studies abroad, the RBI’s LRS is your one stop scheme for all your concerns related to foreign exchange. Currently, under the LRS rules, any resident individual including a minor ( countersigned by a guardian) is allowed to remit up to 2.5 lakh US dollars (USD 2,50,000 ) in each financial year. At an exchange rate of Rs 77 to a dollar, it is about Rs 1,90,25,000 or about Rs 1.92 crore.
US stock market remains the favourite stop for Indians investing abroad. From Facebook, Amazon, Apple, Netflix to Google, popularly known as FAANG stocks, you can own shares in these and other big US firms such as Microsoft.
The US stock market indices like RUSSELL 2000 index, S&P 500 index, Nasdaq Composite Index, Nasdaq-100 comprising of some of the well-known and established global firms.
Taking some exposure in the US stock market may be explored by those who look to diversify in international stocks. A low correlation between two major economies of the world can provide a high risk adjusted return over a longer period of investing.
You may buy individual US stocks such as Apple, Amazon, Google or Facebook or even invest in various ETFs catering to specific sectors or leading US indices. There are ETFs that track Nasdaq 100 and even S&P 500, the two leading US stock market indices in America.
To start investing in US stocks, you need to open an international trading account and have a US bank account abroad. Also, one may start investing in US stocks from NSE IFSC and India INX international exchanges based in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City).