Global Investing Gains Momentum as Indian Investors Look Beyond Domestic Markets
Global investing has become one of the most talked-about themes among Indian investors in 2025. While overseas investing is not new, interest has sharpened meaningfully over the past year as domestic equity markets showed signs of plateauing and currency movements made global exposure more relevant in portfolio construction.
Viram Shah, co-founder and CEO of global investing platform Vested Finance, says the renewed focus stems from a mix of market and regulatory factors. “Domestic markets have matured, and currency dynamics have made international diversification more relevant. At the same time, regulations have made global investing structurally easier,” he said.
Key policy developments such as the Overseas Investment Regulations of 2022, the steady expansion of the Liberalised Remittance Scheme (LRS), and the rise of GIFT City as a regulated offshore financial hub have collectively lowered entry barriers for Indian investors.
Today, investors have multiple routes to access global markets, each with distinct products, costs, tax treatment and risks. Understanding these differences is essential before committing capital overseas.
Direct Ownership Through Overseas-Listed Stocks Offers Control but Comes With Complexity
Buying overseas-listed stocks is the most direct way to invest globally. Investors can own shares of companies listed on exchanges such as the NYSE or Nasdaq, including global giants like Apple, Microsoft, Amazon, Nvidia and Tesla.
Several platforms facilitate this access. Dedicated global investing platforms such as Vested Finance, INDMoney and Appreciate operate alongside domestic brokerages like ICICI Direct, Kotak Securities and Axis Securities, which partner with international brokers such as Interactive Brokers.
The process typically involves completing KYC, opening an overseas trading and custodial account, and remitting funds under the LRS, which allows up to $250,000 per financial year. Securities are held with international custodians and do not form part of the Indian demat system. Fractional share investing is also available on some platforms, improving affordability.
However, investors must factor in multiple costs and risks:
-
Brokerage fees, usually ranging between 0.15% and 0.25% per trade
-
FX conversion spreads of around 50–75 basis points
-
Estate tax risk, as US assets above $60,000 may attract estate tax of up to 40%
From a tax perspective, capital gains on overseas stocks are taxed in India. Short-term gains (less than 24 months) are taxed at slab rates, while long-term gains are taxed at 12.5% without indexation. Dividends are taxed at slab rates, with foreign tax credits available under DTAA. TCS applies on LRS remittances exceeding ₹10 lakh, affecting liquidity though not final returns.
Also Read : Four decades of the Sensex: Understanding India’s markets through 13% annualised returns
Global ETFs Provide Diversification With Lower Effort
Exchange-traded funds (ETFs) offer a simpler way to gain global exposure without selecting individual stocks.
India-listed global ETFs, such as Motilal Oswal Nasdaq 100 ETF or Mirae Asset NYSE FANG+ ETF, trade on Indian exchanges in rupees. These do not require foreign remittances and avoid FX and overseas brokerage costs. However, liquidity is limited to secondary market trades, as new units are not always created for retail investors.
Overseas-listed ETFs, such as the SPDR S&P 500 ETF or Vanguard Total Stock Market ETF, are accessed through global investing platforms and carry similar costs and tax treatment as direct stock investments.
For many investors, ETFs strike a balance between diversification and simplicity, especially for core global exposure.
India-Domiciled Global Mutual Funds Offer Compliance Comfort
Another popular route is investing through India-domiciled global mutual funds and fund-of-funds (FoFs). These products allow global exposure in INR, with the fund manager handling overseas investments.
Several options are available, including Nasdaq 100, S&P 500 and global technology or China-focused funds. Expense ratios typically range from 0.5% to 1.2% for passive FoFs, and up to 1.5–2% for actively managed feeder funds, including underlying fund costs.
Taxation follows the same rules as overseas equities. These funds are often preferred by investors seeking regulatory simplicity and rupee-denominated investments.
GIFT City Opens a Regulated Offshore Route for Global Portfolios
GIFT City has emerged as a new channel for global investing within India’s regulatory framework. It offers access to dollar-denominated mutual funds, AIFs and PMS products through IFSC-registered entities.
Investing via GIFT City requires opening IFSC-specific accounts and a dollar bank account. The onboarding process is currently semi-digital and takes two to four weeks. Costs include bank account maintenance, FX conversion and transaction fees.
Available products span:
-
Retail global mutual funds with minimum investments of around $5,000
-
PMS strategies starting at $75,000
-
AIFs requiring $150,000 or more
Recent launches from DSP, Edelweiss and Parag Parikh AMC have expanded retail participation, offering exposure to developed markets, China and US indices at competitive expense ratios.
Niteen D, Director & CEO, GIFT City IFSC Business, cautions investors to account for all charges. “Beyond fund expenses, investors should factor in bank charges, account maintenance and currency conversion costs,” he said.
Currency Risk and Disclosure Requirements Remain Critical
All global investments carry currency risk. A weakening rupee can enhance returns, while a strengthening rupee can erode gains even if the underlying asset performs well.
Investors must also comply with Schedule FA disclosures. Resident and ordinarily resident taxpayers are required to report all foreign assets and income, regardless of taxability. Non-disclosure can attract severe penalties under Indian tax laws.
Why Global Investing Is Becoming Structural, Not Tactical
As Indian investors mature, global investing is shifting from a tactical bet to a structural allocation. Whether through direct stocks, ETFs, mutual funds or GIFT City products, overseas exposure offers diversification across geographies, currencies and economic cycles.
The choice of route ultimately depends on an investor’s risk appetite, investment horizon, cost sensitivity and compliance comfort. What is clear is that global investing is no longer niche—it is becoming an integral part of long-term portfolio strategy for Indian investors.
