How Much Money Do You Need to Start Investing in US Stocks?
You wake up and check WhatsApp (Meta). You search for news on Google. You order a coffee and pay via Apple Pay. In the evening, you relax with Netflix. As Indian investors, our consumption is already global. We use American products every single day. So, why are our investment portfolios still 100% local? A common question we hear at Motilal Oswal is: "I want to buy shares of Apple or Tesla, but don't I need lakhs of rupees to start?"
The short answer is: No.
The days of needing "big capital" to invest abroad are over. Today, you can start your global investment journey with the amount of money you might spend on a weekend dinner.
Open a demat account and invest in Indian and US stocks from one app
How Much Do You Need?
There are two ways to invest in the US, and the "starting amount" depends on which path you choose.
Concept 1: The Magic of Fractional Shares
In the Indian stock market, you generally have to buy whole shares. If a company’s share price is ₹80,000, you need ₹80,000 to buy just one share.
The US market is different. It allows you to buy "Fractional Shares."
Think of it like a pizza. You don't have to buy the whole pizza if you aren't hungry. You can just buy one slice.
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Share Price of Amazon: $222 (approx. ₹20,000).
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Money you have: $10 (approx. ₹900).
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Result: You can invest your $10 and own 0.05 shares of Amazon.
This feature is a game-changer. It means your budget dictates your investment, not the share price.
Path 1: The Easy Route (Mutual Funds & ETFs)
The "SIP and Forget" Strategy
If you don't want the headache of tracking international news or managing dollar transfers, this is the best route. You invest in Indian Rupees, and the experts at Motilal Oswal Asset Management Company (MOAMC) handle the rest. We have a proven track record of managing international funds, ensuring your money is deployed efficiently in global markets
Minimum Investment: ₹500 per month via SIP.
Why choose this?
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No Bank Charges: You pay in Rupees. No international wire transfer fees.
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Tax Simplicity: No need to worry about foreign tax credits.
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Diversification: With just ₹500, you get exposure to the top 50-100 companies in the US.
Path 2: The Direct Route (Buying Stocks Yourself)
The "Stock Picker" Strategy
If you specifically want to own shares of NVIDIA, Microsoft, or Coca-Cola directly in your name, you will use our Global Investing platform.
The "Real" Cost of Direct Investing
While apps allow you to buy shares for just $1, there is a practical cost to consider: Bank Transfer Fees.
When you send money from your Indian bank to your US trading account, banks typically charge:
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Fixed Swift Fee: ₹500 to ₹1,000 per transaction.
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Forex Markup: 1% to 2% of the amount.
Our Recommendation:
Because of the fixed fee, sending small amounts (like ₹2,000) doesn't make sense. You would lose 25-50% of your money in fees alone!
To make the fees negligible, we suggest a minimum transfer of $500 to $1,000 (approx. ₹45,000 to ₹90,000) at one time. Once this money is in your US account, you can split it up and buy $10 of one stock and $20 of another.
How to Invest in US Stocks with Motilal Oswal
Starting your global journey with us is simple and fully digital. You do not need to visit a branch or fill out physical paperwork.
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Login: Open your MO Riise app.
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Activate: Go to the More and select "US Stocks" If you are a first-time user, click "Start Investing" to activate your global account. This will open a separate US brokerage account for you with zero opening fees.
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Fund: Transfer funds from your Indian bank account to this new US account via the LRS route (net banking).
Trade: Once the dollars hit your account (usually within 24 hours), you can search for "Apple" or "Google" and buy your first fractional share instantly.
Final Thought
Investing in the US is not about abandoning India; it is about completing your portfolio. You don't need millions to start, you just need the mindset to look beyond borders.
Ready to own a piece of the world?
Log in to your Motilal Oswal app today and explore our US Stocks solutions.
Frequently Asked Questions (FAQs)
Can I really start with just ₹500?
Is my money safe in a US brokerage account?
Do I need to pay a monthly fee to keep the US account open?
What documents do I need?
Can I withdraw my money back to my Indian bank account anytime?
How much tax do I pay on profits?
- Long Term (Held > 24 months): Taxed at 12.5% (without indexation).
- Short Term (Held < 24 months): Added to your total income and taxed as per your slab rate.