Two Routes to Go Global

Route A — International Mutual Funds (India-domiciled)

Buy in INR; the fund invests overseas directly or via a feeder fund. Easy, compliant, and hands-off.

  • Pros: Simple execution; no LRS remittance needed; SIP-friendly.
  • Cons: Sometimes higher expenses; industry caps can pause new inflows; less control on holdings.
  • Best for: “Set-and-forget” global exposure without managing FX or wires.
Heads-up on limits: SEBI/AMFI have maintained industry-wide caps on overseas investments. A commonly referenced level has been about USD 7 billion overall for overseas securities and USD 1 billion for overseas ETFs (industry-wide). When caps are tight, some schemes pause new subscriptions until headroom frees up.

Route B — Direct Overseas Investing (via Brokers)

Open an overseas account, remit under LRS, and buy global stocks/ETFs yourself.

  • Pros: Full control; access many markets & themes; transparent holdings.
  • Cons: Requires LRS remittance; FX & wire costs; more paperwork; platform learning curve.
  • Best for: Deeper diversification and advanced features over time.

Step-by-Step Plan

1) Allocate

Decide your global slice (e.g., 15–35% of equities). Diversify across US, developed ex-US, and EM.

2) Pick a Route

Choose Route A for simplicity (INR SIPs), Route B for control & multi-market access — or blend both.

3) Execute

A: KYC → pick international schemes → SIP.
B: Open broker account → remit via LRS → buy ETFs/stocks → track FX.

4) Costs

Account for expense ratios, brokerage, FX spread, bank charges, and any platform fees.

5) Rebalance

Review annually or when allocation drifts (e.g., ±5%).

6) Compliance

Know LRS limits, TCS (if applicable), and Indian tax rules for foreign assets/income reporting.

India-Listed Global ETFs (NSE/BSE)

Examples of ETFs listed in India that track overseas indices. You buy them on NSE/BSE in INR; the ETF provides foreign-market exposure.

  • Motilal Oswal NASDAQ-100 ETF (NSE: MON100 / N100) — Tracks the Nasdaq-100 (US tech-heavy large caps).
  • Nippon India ETF Hang Seng BeES (NSE: HNGSNGBEES) — Tracks the Hang Seng Index (Hong Kong).
  • Mirae Asset NYSE FANG+ ETF — Tracks the NYSE FANG+ Total Return Index (mega-cap global tech/media names).
Availability note: Due to the industry-wide overseas caps, AMCs may pause subscriptions in certain international schemes/ETFs from time to time.

India-Domiciled Global Mutual Funds — Examples

Illustrative examples across US, global diversified, thematic, and emerging markets. Check each scheme’s latest factsheet for expense ratio (TER), current status (open/paused), and underlying exposure.

Fund (Direct Plan) Region / Theme Type Underlying / Notes
Motilal Oswal S&P 500 Index Fund US Large-cap Index Index Fund Tracks S&P 500; INR-based; passive US exposure.
Kotak NASDAQ 100 Fund of Fund US Technology-heavy Large Caps FoF (Overseas) Invests in overseas NASDAQ 100 ETF/fund; growth/tech tilt.
Edelweiss US Technology Equity FoF US Technology FoF (Overseas) Feeder to an offshore US Tech strategy; higher sector concentration.
PGIM India Global Equity Opportunities Fund Global Diversified FoF (Overseas) Multi-region exposure via an offshore global equity fund.
ICICI Prudential US Bluechip Equity Fund US Large-cap Active Invests primarily in US blue-chip equities.
Mirae Asset NYSE FANG+ ETF FoF Global Thematic – Tech/Media FoF (Overseas ETF) FoF that invests in India-listed NYSE FANG+ ETF; concentrated theme.
Edelweiss Greater China Equity Offshore Fund Emerging / Greater China FoF (Offshore) Exposure to China/HK/Taiwan; higher geopolitical & currency risk.
Kotak Global Emerging Market Fund of Fund Emerging Markets FoF (Overseas) Allocates to an offshore EM equity fund; diversified EM exposure.

Tip: Because of industry caps on overseas investments, some schemes may show “temporarily paused” for fresh subscriptions/SIPs. Revisit periodically or use alternative routes (e.g., India-listed global ETFs or direct overseas brokers).

Broker Comparison — Features & Charges

Platform Best For Key Fees / Brokerage Notes
INDmoney Simplest US exposure; fractional shares • In-app US trades often shown as zero-commission (verify FX/back-end costs).
• INR→USD FX spread & bank remittance charges apply under LRS.
• For Indian equity delivery, schedules are typically ≤ ₹20/order or 0.05% (check latest). 		Very friendly UX; largely US-focused today. Great on-ramp for beginners.
Vested US stocks/ETFs with simple app • Zero-commission US trades; plan-based pricing for extras.
• Withdrawals may charge after free quota; FX & LRS costs apply. 		Good for small, regular US investing; check total cost of ownership.
Interactive Brokers (IBKR) Power users; multi-market (US/EU/Asia) • US: ~$0.005/share (min ~$1 per order).
• Market-data subscriptions extra (optional).
• Tight FX; bank wire fees depend on your bank. 		Institution-grade tools & markets; steeper learning, most flexible long term.

Confirm each platform’s latest fee schedule, FX rate, and any taxes before investing. Visible brokerage is only part of your total cost; FX spread + bank charges + taxes often dominate.

Which Should You Choose?

Choose INDmoney if…

  • You want the fastest start with US stocks/ETFs.
  • You like fractional shares & recurring buys.
  • You prefer a clean mobile app experience.

Choose Vested if…

  • You want a simple US-first platform with plan options.
  • You invest small amounts but regularly.
  • You want basic education & curated lists.

Choose IBKR if…

  • You aim for multi-country diversification (US, EU, APAC).
  • You value tight execution & advanced order types.
  • You don’t mind a learning curve.

LRS, TCS & Taxes — Quick Checklist

  • LRS limit: Up to USD 250,000 per resident individual per financial year for permissible outward remittances (including investing overseas).
  • TCS: Check current slabs for foreign remittance categories (education/travel/investments). Verify with your bank before wiring.
  • Reporting: If you hold overseas assets, disclose in your Indian ITR (Schedule FA) as applicable; report foreign income & claim FTC where eligible.
  • Records: Keep statements showing INR cost, FX rates, and trade dates for accurate capital-gains computation.

FAQ — Quick Answers

  • What’s better, Fund route or Broker route?
    For convenience, choose International Mutual Funds. For control & more markets, open an overseas account — or use both (core + satellite).
  • How much global allocation?
    Many investors keep 15–35% of equity overseas; tailor to risk tolerance & goals.
  • USD vs INR risk?
    Currency moves can amplify or dampen returns. Take a 5–10 year view; rebalance.
  • Can I buy non-US markets via INDmoney?
    It’s primarily US-focused today. For broader markets, consider IBKR.
  • Are there caps on international mutual funds?
    Yes — industry limits on overseas exposure can cause temporary pauses in new inflows.