What Are US Stocks & Why Indians Are Investing in Them?

What are US Stocks?

US stocks are shares of ownership in companies listed on the world’s most powerful stock exchanges the New York Stock Exchange (NYSE) and the NASDAQ. When you buy these stocks you aren't just betting on a single country; you are investing in the Global Engine of the economy.

The Fractional Revolution: One of the most unique aspects of the US market is Fractional Investing. Unlike the Indian market where you must buy at least one full share (e.g., one share of MRF), US regulations allow you to buy a slice of a share. This means you can own a piece of a high-priced company like Booking Holdings or NVIDIA for as little as $1 (approx. ₹90).

Open a demat account and invest in Indian and US stocks from one app

Why Are Indians Investing in US Stocks?

The year 2025 has seen a massive structural shift in how Indians build portfolios. Here is a breakdown of why global investing has moved from optional to essential.

• Access to Global Giants: Many of the world’s most innovative sectors like Advanced Artificial Intelligence, Semiconductors, and Global E-commerce are primarily listed in the US. By investing there, you own companies like Apple, Microsoft, and Amazon that have a customer in almost every country.

• The Currency Bonus: Historically, the US Dollar (USD) has strengthened against the Indian Rupee (INR). For an Indian investor, this is a hidden return. Even if a US stock price stays flat, your investment value in Rupees increases if the Dollar gains strength.

• Portfolio Stability: India and the US represent two different economic engines. While India is a consumption-led emerging market, the US is an innovation-led mature market. Owning both helps smooth out your returns; when the Indian market faces local volatility, your US holdings can act as a stabilizer.

• Matching Future Goals: If you are saving for a child’s education abroad or an international luxury vacation, it makes sense to save in the currency you will eventually spend in the US Dollar.

Quick Comparison: India vs. USA (2026 Guide)

Motilal Oswal RIISE For US Stocks Investment

Motilal Oswal has rebranded and supercharged its platform into RIISE (formerly MO Investor), specifically to make global investing as simple as ordering food online.

Key RIISE Features for US Stocks:

• Expertly curated baskets of US stocks. Instead of researching individual companies, you can invest in themes like the AI Revolution Stack or Mega Cap Tech Stack. 100% Digital LRS: Remitting money abroad used to involve heavy paperwork. RIISE automates the Liberalised Remittance Scheme (LRS) process, letting you transfer funds from your Indian bank to your US wallet digitally in minutes.

• Track your Nifty 50 stocks, Mutual Funds, and NASDAQ holdings all in one single smart view.

• RIISE offers a transparent fee structure with ₹0 Account Opening Charges for the US segment, ensuring you keep more of what you earn.

Checklist to Start on RIISE

1. Activate Segment: Log in to the RIISE app and tap on the US Stocks tab.

2. Digital KYC: Confirm your PAN and Aadhaar details (takes about 2 minutes).

3. W-8BEN Form: RIISE will ask you to digitally sign this form. It’s essential to ensure the US government doesn't overtax your dividends.

4. Add Funds: Move INR from your bank account. It gets converted to USD and shows up in your wallet within 24 hours.

5. Place Your Trade: Search for a stock like Tesla or an ETF like S&P 500 and start with as little as $1.

Taxes and Regulations

As per the latest 2025 budget, you can remit up to ₹10 Lakh in a financial year for investments without paying any Tax Collected at Source (TCS). If you remit more than ₹10 Lakh, a 20% TCS is collected by the bank, but you can claim this back as a refund when you file your Income Tax Return (ITR).

Tax on Profits:

• Dividends: The US deducts 25% tax. However, thanks to the DTAA (Double Taxation Avoidance Agreement), you can claim this as a credit in India to avoid being taxed twice.

• Capital Gains: If you hold for >24 months, your profit is taxed at 12.5% (Long-Term). If you sell earlier, it is added to your regular income and taxed as per your slab (Short-Term).

To explore US Stocks, click here

 Frequently Asked Quaestions