Welcome to the world of global investing for Indian investors! Under the Liberalised Remittance Scheme, Indian residents can invest up to 250,000 US dollars annually in overseas markets. This opens up exciting opportunities to diversify portfolios beyond Indian borders and access global investment opportunities in stocks, ETFs, and real estate across major financial markets worldwide.
The Liberalised Remittance Scheme sets an annual limit of 250,000 US dollars per individual per financial year. This limit covers all overseas transactions including investments, travel, and education expenses. You need to file Form A2 declaration for remittances, and Tax Collected at Source may apply. Let's see how this limit might be utilized across different categories throughout the year.
Indian investors have access to a wide range of global investment options. You can invest in foreign stocks like Apple, Google, and Tesla from the US market, or European companies like Nestle and ASML. Asian markets offer opportunities in Samsung and TSMC. Real Estate Investment Trusts provide exposure to international property markets, while foreign mutual funds offer diversified global portfolios. Let's visualize how a typical global portfolio might be allocated across different regions.
The investment process involves four key steps. First, choose a suitable platform like Vested Finance, INDmoney, or international brokers like Interactive Brokers. Second, complete the KYC process with required documents including PAN, Aadhaar, and bank statements. Third, transfer funds through the LRS route with proper Form A2 declaration. Finally, start investing by researching and placing orders in your chosen global markets. Each step builds upon the previous one to ensure compliance and successful international investing.
To summarize what we have learned about Indian investors going global: The Liberalised Remittance Scheme provides a pathway with an annual limit of 250,000 US dollars. You can access global markets through various platforms and diversify your portfolio with international stocks, ETFs, and real estate. The process involves completing KYC requirements, transferring funds through proper channels, and understanding tax implications. This opens up exciting opportunities for Indian investors to participate in global financial markets and achieve better diversification.