Groww US Stock: A Guide for Indian Investors

Curious how Indian investors can access US stocks with Groww? Discover the essentials, strategies, and risks to diversify your portfolio globally with confidence.

Imagine the satisfaction of seeing your investment portfolio thrive beyond the boundaries of the Indian stock market, tapping into opportunities from companies like Apple, Tesla, and Microsoft. Yet, for many Indian investors, navigating foreign exchanges feels complicated and overwhelming—especially with currency conversions, regulatory hurdles, and platform choices to consider.

Access to US stocks isn’t reserved for industry insiders or high-net-worth individuals anymore. More Indians are leveraging platforms like Groww to diversify internationally and potentially benefit from global growth stories. This guide clarifies the step-by-step process of investing in US stocks from India, outlining eligibility, documentation, fees, tax implications, and realistic timeframes so you can confidently make informed decisions and understand what it truly takes to access international markets.

In a world where wealth knows no borders, the true edge lies not just in what you invest in, but in how boldly you cross financial frontiers—US stocks offer Indian investors a gateway to global ambition.

How to Invest in US Stocks from India

Introduction

Overview

Diversifying investments across borders is gaining momentum among Indian retail investors. As global markets become increasingly accessible, growing numbers of Indians are keen to unlock the opportunities offered by the US stock market. Platforms like Groww make it possible for Indian investors to buy shares in companies such as Apple, Tesla, and Amazon, right from their smartphones, broadening the horizons for wealth creation and portfolio growth.

The attraction of US stocks is rooted in their access to some of the world’s most innovative companies and robust sectors. For example, the NASDAQ Composite, home to giants like Microsoft and Alphabet, has delivered an average annual return of around 17% over the past decade—outpacing traditional Indian benchmarks like the Nifty 50. Sectors such as technology, healthcare, and clean energy are brimming with innovators not yet represented on Indian exchanges.

However, international investing comes with unique challenges. Investors must navigate factors such as foreign exchange fees, US taxation, and regulatory compliance. Even a simple transfer of $1,000 to a US brokerage can incur costs of up to 2-3% in INR-USD conversion fees. Understanding these hurdles is essential before venturing beyond domestic markets.

Purpose of This Guide

This guide is designed to make US stock investing from India approachable and transparent. It will lay out practical strategies, demystify regulatory complexities, and provide actionable tips for leveraging platforms like Groww to expand your investment universe.

1. Understanding Groww US Stock and Its Benefits

Groww US Stock Platform

Investing in US stocks from India is now more accessible than ever, thanks to platforms like Groww. Groww US Stock allows Indian residents to buy shares of global giants such as Apple, Tesla, and Amazon using an intuitive online interface. Investors can open an overseas trading account directly on Groww with fully digital onboarding—there’s no need for cumbersome paperwork or complex processes.

The platform stands out for features like zero account opening charges, fractional share investing (letting users invest as little as $1), easy fund transfers, and real-time market data. For instance, a first-time investor wanting to purchase a fraction of Alphabet (Google) stock—currently trading above $120 per share—can do so without buying a whole share, making diversification affordable for entry-level capital.

Key Benefits of Using Groww for International Investing

International diversification allows investors to participate in the growth of companies driving global innovation. With Groww US Stock, Indian investors avoid excessive paperwork and can access US-listed stocks, ETFs, and indices from a single dashboard.

Other benefits include competitive currency conversion rates and guidance on RBI’s Liberalized Remittance Scheme, which allows up to $250,000 per year to be invested abroad legally. Investors like Priya from Mumbai, for example, use Groww to regularly buy ETFs like the S&P 500 or shares of Netflix, taking advantage of dollar-denominated returns.

How Groww Simplifies Investing in US Stocks for Indian Residents

Before platforms like Groww, investing in US markets meant navigating international brokers, high account minimums, and hefty remittance paperwork. Groww streamlines these hurdles with KYC-friendly setup, integrated fund transfer tools, and robust customer support tailored to Indian regulations.

For example, after uploading PAN and Aadhaar for KYC, users can directly remit funds under the LRS, track investments in real time, and withdraw money without hidden fees. The process now mirrors local investing, increasing participation from young professionals who once hesitated due to complexity.

Differences between Indian and US Stock Markets for Beginners

Understanding market differences helps investors make informed decisions. The US stock market features extended trading hours—pre-market and after-hours sessions—whereas Indian markets have fixed timings. US companies often pay regular dividends, and reporting is quarterly, compared to the semi-annual system in India.

A concrete example is the difference in stock price movement: US stocks like Apple can fluctuate several dollars within hours, providing more intraday opportunity than many blue-chip Indian shares. Regulatory frameworks also differ, with the US SEC applying rigorous compliance standards and quarterly earnings calls—practices that set expectations for global transparency and investor updates.

2. Step-by-Step Guide: How to Invest in US Stocks from India Using Groww

Getting Started

Investing in US stocks from India is now easier than ever, thanks to platforms like Groww. Whether you're interested in buying Apple, Tesla, or Amazon shares, the process is accessible to retail investors through a digital interface. Understanding the precise steps can help you avoid delays and common errors.

Account Creation and KYC Process on Groww

Begin by downloading the Groww app or visiting its website. Click on “Register” to start your account creation journey. Be ready with your PAN card, Aadhaar, and bank details—these are mandatory for the KYC (Know Your Customer) process under Indian regulations.

For instance, Rajesh from Mumbai was able to verify his identity and link his HDFC Bank account within minutes using Groww’s automated video KYC feature. Double-check that your name on all documents matches to avoid rejections, a mistake that nearly 12% of applicants reportedly encounter.

Navigating the Groww Platform for International Stocks

Once your account is active, log in and select the “US Stocks” or “Stocks (US)” tab. Here, you can browse thousands of American stocks and Exchange Traded Funds (ETFs). The platform offers real-time charting tools and financial data for each company.

For example, the search and filter features on Groww are frequently used by beginner investors to compare companies like Microsoft and Alphabet by market cap, sector, or recent performance before placing their trades.

Fund Transfer Methods and Currency Conversion Details

Before buying US stocks, you’ll need to transfer funds from your Indian bank account to your Groww US trading account. This is typically done via international wire transfer under the Liberalized Remittance Scheme (LRS), which allows you to remit up to $250,000 USD per year.

Keep in mind, major Indian banks such as SBI and ICICI charge remittance fees—usually ranging from ₹500 to ₹1,500 per transaction—plus government taxes. Groww converts your INR to USD using live forex rates, transparently displaying charges and conversion costs before confirmation.

Placing Your First Trade: Buying and Selling US Stocks on Groww

After funding your account, you are ready to invest. Search for a specific stock—for example, type “Apple” (AAPL) to view its quote. Click on the “Buy” button, enter the number of shares or the dollar amount, and review the estimated fees and taxes before finalizing your order.

Orders are usually executed during US market hours (7:00 PM to 1:30 AM IST). You’ll receive trade confirmations in-app and via email. If you wish to sell, simply use the “Sell” option from your portfolio. Many new users opt to buy fractional shares, so even with just ₹5,000, you can own a piece of Google (GOOGL) or Netflix (NFLX) without needing to buy a whole share.

How to Invest in US Stocks from India

3. Essential Requirements for International Investing via Groww

Compliance and Documentation

Investing in U.S. stocks from India using platforms like Groww requires investors to comply with certain regulatory standards. The Reserve Bank of India’s Liberalised Remittance Scheme (LRS) governs all outbound investments. Under LRS, Indian residents can invest up to $250,000 per financial year in overseas assets, including foreign stocks. This framework helps ensure that all cross-border investments comply with Indian law.

Groww guides users through the documentation and verification process to simplify compliance. Investors need to provide proofs such as a PAN card, address verification, and bank account details for KYC (Know Your Customer) checks. For example, a first-time investor named Rohan registered through Groww’s interface by uploading his Aadhaar and PAN documents, which were verified within 48 hours, allowing him to start trading in U.S. stocks promptly.

Minimum Investment & Fees

One appeal of platforms like Groww is the low entry barrier. There’s no mandatory minimum investment—users can buy fractional shares of companies like Tesla or Apple starting from as little as $1. This flexibility has encouraged thousands of Indian investors to access global equities without committing large sums.

Groww charges a withdrawal fee of $9 per transaction for remitting funds back to India, and there might be currency conversion fees as well. For instance, if an investor decides to cash out $200, a $9 fee is deducted during withdrawal. Detailed fee structures are explained on Groww’s official blog about how to invest in US stocks from India, ensuring transparency for retail investors.

Taxation Rules

Indian investors in U.S. stocks must also be aware of tax implications. Any dividends from U.S. equities are taxed at 25% at source, as per U.S. IRS rules, before the earnings reach Indian investors. For capital gains, these are not taxed in the U.S. for Indian residents, but profits are subject to Indian capital gains tax upon sale. For example, when Pooja received $50 in dividends from Microsoft, she noted only $37.50 was credited after the 25% U.S. withholding tax, and she reported this income in her Indian tax filings as well.

Groww provides investors with downloadable statements to support accurate reporting and tax compliance in India. It is recommended to consult a tax advisor for the latest updates, especially if investing larger sums or diversifying across multiple global markets.

How to Invest Outside India

4. Popular US Stocks and Investment Options Available on Groww

Investment Choices

With US equities catching the interest of Indian investors, platforms like Groww offer a simplified gateway to access a wide selection of American stocks and exchange-traded funds (ETFs). This accessibility enables users to diversify beyond Indian borders and participate in global growth stories.

Overview of available US stocks and ETFs on the platform

Groww lets investors buy shares and ETFs listed on leading US exchanges such as the NYSE and NASDAQ. Notable blue-chip stocks like Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN), as well as popular ETFs such as the Vanguard S&P 500 ETF (VOO) and Invesco QQQ Trust (QQQ), are available for direct investment. This breadth allows users to tailor their US portfolio based on risk tolerance and sector preferences.

The US market is home to globally recognized growth sectors. Technology remains a major draw, with stocks like Tesla (TSLA) and NVIDIA (NVDA) delivering substantial returns in recent years. Healthcare is another rising sector, featuring innovators like Pfizer (PFE) and Johnson & Johnson (JNJ). Groww highlights trending stocks and sectors, making it easier for investors to spot opportunities driven by market momentum or global trends.

Fractional shares: Investing with small amounts

One significant advantage of investing through Groww is the ability to buy fractional shares. This feature allows beginners or those with limited capital to own a portion of high-priced stocks. For example, investors can put just $10 into Alphabet (GOOGL), whose full share price may exceed $100, democratizing access to leading US companies.

Access to US stock market indices for beginners

For those new to international equities, Groww provides access to major indices through index-based ETFs. New investors can consider options like the SPDR S&P 500 ETF Trust (SPY) to gain exposure to the performance of America’s 500 largest companies in a single investment. This approach spreads risk across multiple sectors and reduces the need for picking individual winners, making it a practical entry strategy.

How to Invest in US Stocks via Mutual Funds

5. Risks and Challenges of Investing in US Stocks from India

Potential Pitfalls

Investing in US stocks offers diversification and access to leading global companies. However, Indian investors often face specific challenges that can influence returns and trading experiences. Recognizing these risks is crucial for anyone considering a cross-border investment strategy.

Currency Risk and Exchanging INR to USD

Every investment in US stocks from India involves converting Indian Rupees (INR) into US Dollars (USD). This process exposes investors to currency fluctuations. A depreciating rupee can erode gains or amplify losses. For instance, in 2022, the INR fell over 10% against the USD—meaning even if US stock prices rose, Indian investors could still face reduced returns when converting profits back to rupees.

Some investors use tools like multi-currency accounts or hedging services available with platforms like ICICI Direct or HDFC Securities, yet these can add extra costs or complexity. There’s no foolproof way to eliminate currency risk entirely.

Market Volatility and Investment Risks Unique to US Stocks

The US market operates under different economic dynamics, regulations, and company performance trends compared to Indian markets. Sectors such as technology (with names like Tesla or Meta Platforms) are particularly volatile. In 2022, Meta’s stock plunged over 60% in a year, impacting global investors regardless of where they reside.

Corporate earnings, Federal Reserve policy, or geopolitical news can drive sharp price swings overnight, raising the stakes for investors unfamiliar with these unique triggers.

Regulatory, Compliance, and Repatriation Issues

Indian investors are bound by the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), capping overseas investment at $250,000 per financial year. There are strict reporting requirements, such as filing Form A2 for remittances—a step occasionally missed by new investors.

Bringing investment gains back into India (repatriation) may involve additional paperwork and taxes. In 2020, many first-time investors reported delays and confusion about repatriation procedures during volatile periods, as highlighted in The Economic Times.

Time Zone Differences and Their Impact on Trading

The New York Stock Exchange (NYSE) and NASDAQ operate from 7 PM to 1:30 AM IST. This evening-to-late-night window is inconvenient for Indian retail traders who wish to react to earnings or news in real time. For example, Apple’s quarterly results are typically announced post-US market close, around 2 AM IST, making live trading challenging for Indian investors.

Nighttime trading hours might not suit everyone, especially those balancing full-time jobs or family commitments. Some use automated trading tools like Interactive Brokers’ after-market orders, but this doesn't fully compensate for real-time decision-making constraints.

Risks of Investing in the US Stock Market

6. Tips and Best Practices for US Stock Market Beginners

Smart Investing Strategies

Starting out in the US stock market can seem overwhelming for beginners, but adopting a set of proven strategies can help manage risk and set you on the path toward consistent returns. Understanding how to research, diversify, and track your portfolio is key to becoming a confident investor.

Diversification strategies to manage risk

Spreading investments across multiple sectors is crucial to reducing exposure to a single company or industry downturn. For instance, rather than investing solely in tech giants like Apple and Microsoft, consider adding shares from sectors such as healthcare (like Johnson & Johnson) or consumer staples (such as Procter & Gamble). In the 2020 market downturn, diversified portfolios that included utilities and healthcare saw less volatility than those heavily concentrated in technology stocks.

Using research tools and resources on Groww

Accurate information is essential when making investment decisions. Platforms like Groww’s US Stocks section offer research tools such as analyst ratings, financial statements, and performance charts. For example, if you’re considering buying Tesla stock, you can use Groww’s insights to check historical performance, read analyst summaries, and compare Tesla’s financials to peers like Ford or General Motors.

Setting investment goals and tracking returns

Having clear objectives—such as saving for retirement, a home, or education—allows you to choose the right mix of stocks and ETFs. Suppose your goal is a 10% annual return over the next five years; using Groww’s portfolio tracking feature, you can monitor your actual gain or loss and rebalance your holdings accordingly. Many users set alerts for stock price targets or portfolio milestones to stay disciplined and aligned with their goals.

Avoiding common mistakes when investing internationally

International investing has its own pitfalls. New investors sometimes overlook additional charges like currency conversion fees or US tax implications. For example, some Indian investors in US stocks overlooked the impact of dividend withholding tax, reducing their effective returns. Education and continual learning are crucial—read up on SEC regulations or IRS tax rules before placing your first international order. This extra diligence can prevent costly mistakes and set the foundation for long-term success.

Stock market basics: 10 tips for beginners

7. Groww International Investing: Fees, Charges, and Cost Optimization

Managing Costs

Opening an international investment account through Groww offers Indian investors a gateway to global markets like the NYSE or NASDAQ, but understanding the associated fees is crucial for cost-effective trading. Account opening on Groww is typically free, but investors incur a flat fee—often around $0.01 per stock—on US transactions, along with regulatory charges from the SEC and FINRA. For example, buying $1,000 worth of Apple (AAPL) shares might result in transaction and compliance fees totaling about $2-3 depending on volume and exchange rates.

Currency conversion is a significant cost factor, as rupees are converted to USD. Groww partners with HDFC Bank and charges a currency conversion spread, which can range from 0.5% to 2% over the interbank rate. On remitting ₹1,00,000 (approx. $1,200), you might pay ₹1,000-₹2,000 in exchange costs. Indian banks also levy service charges—ICICI Bank, for instance, may charge up to ₹500 per remittance under the Liberalised Remittance Scheme (LRS).

Taxation for overseas investments involves withholding tax on dividends, typically 25% for Indian holders of US stocks. However, India's Double Tax Avoidance Agreement (DTAA) with the US allows investors to claim credit against Indian tax liability for taxes paid abroad. For instance, if you earned $100 in dividends from Google parent Alphabet and paid $25 tax in the US, you can offset this when filing your Indian income tax, reducing your effective tax outgo.

To minimize costs and boost returns, batch your transactions to reduce per-trade fees, use banks with lower Forex markups, and leverage tax treaties. Some investors diversify using ETFs like the Vanguard S&P 500 ETF to limit transaction frequency and currency exposure. Comparing service charges among remittance partners—like HDFC, ICICI, and Axis Bank—before transferring large amounts also helps cut costs.

Brokerage Charges & Pricing

Conclusion

Key Takeaways and Next Steps

Key takeaways for Indian investors venturing into US stocks via Groww

Investing in US stocks opens up access to some of the world’s most innovative and stable companies. With platforms like Groww, Indian investors can now directly buy shares of global giants such as Apple, Microsoft, Tesla, and Google, diversifying beyond traditional domestic options.

Thousands of Indian investors have already taken advantage of this route. For example, Apple’s robust performance in 2023, with nearly 45% annual growth, allowed Indian investors to benefit from the global tech boom—a trend that was otherwise limited in Indian markets alone.

How international diversification can strengthen your portfolio

Diversifying internationally helps protect your investments from country-specific risks. This means that when the Indian markets faced volatility after the RBI's interest rate hikes in 2022, investors holding US stocks like Amazon or Johnson & Johnson experienced a cushioning effect, as these stocks were influenced by global rather than local factors.

Data shows that global portfolios, which include US equities, historically lower overall risk while enhancing returns. The MSCI World Index, for instance, delivered a 7.5% annualized return over 10 years compared to the Nifty 50’s 6.1%.

Why education and ongoing research are critical in global investing

Global markets are dynamic, and informed investment decisions require ongoing learning. Newcomers should leverage resources like Groww’s investing guides, The Motley Fool, or Morningstar’s research tools for insights on US market trends and company analysis.

For example, staying updated on policy changes, such as US Federal Reserve rate hikes, can help Indian investors manage currency risk and time their investments sensibly, as seen in the recent USD-INR fluctuations affecting dollar-denominated portfolios.

Next steps: Open your account and start exploring US stocks on Groww

Getting started is straightforward. Open a US stocks-enabled account on Groww by completing a simple KYC process. Once verified, you can explore hundreds of US-listed stocks and ETFs immediately.

Take the first practical step: shortlist leading US companies by market capitalization or sector, and begin with small, regular investments. For instance, an SIP in ETFs like the Nasdaq 100 or S&P 500 is a prudent way to build exposure safely. With education, careful planning, and steady action, you can unlock the full benefits of global equity investing.

FAQs

Common Questions

Many Indian investors explore international diversification by accessing US stock markets through platforms like Groww. These questions focus on practical aspects such as funding, taxation, withdrawals, safety, and regulatory considerations for Indian residents investing in US equities.

How do I fund my Groww account for US stock investments from India?

To invest in US stocks via Groww, Indian residents typically use outward remittance through their linked bank accounts. This is facilitated under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), which allows individuals to remit up to USD 250,000 per financial year for permissible investments abroad.

For example, HDFC Bank and ICICI Bank are commonly used by Groww users for LRS transfers. The process usually involves initiating an international transfer request from your bank's net banking portal, uploading the share purchase request from Groww, and following the compliance checks. The transfer can take 2-4 business days, depending on your bank's processing time.

Why should I consider investing in US stocks as an Indian investor?

US equities provide exposure to global leaders like Apple, Amazon, and Tesla, allowing Indian investors to diversify beyond domestic markets. This can reduce risk, especially since the Indian and US markets do not always move in tandem.

For instance, during the 2022 market downturn, while India's Nifty 50 index dropped by about 4%, the Dow Jones Industrial Average declined by nearly 9%. Allocating a portion of your portfolio to US stocks can help weather volatility and access high-growth sectors such as technology.

What are the tax implications when I sell my US stocks on Groww?

Gains from selling US stocks are subject to tax both in the US and India. The US taxes non-resident investors only on dividends (currently at 25%), not on capital gains. However, in India, capital gains must be declared under your income tax filing. Short-term gains (stocks held less than 24 months) are taxed as per your income slab, while long-term gains attract a 20% tax with indexation.

For example, if you earned ₹50,000 as long-term gains from selling Tesla shares, you would pay approximately 20% tax in India after adjusting for inflation—consult your tax advisor for specifics.

When can I access my funds after selling US stocks via Groww?

After selling US stocks, the settlement period is typically T+2 (trade date plus two business days). Once settlements are complete, you can initiate a withdrawal from your Groww US account to your Indian bank. Remittances may take 2-5 business days to reflect due to RBI and bank verifications.

For example, an investor who sells Apple shares on Monday can expect funds to become available for withdrawal by Wednesday. If the withdrawal request is triggered the same day, most users see credits in their Indian accounts by Friday or the following Monday, depending on the intervening holidays.

How safe is it to use Groww for international investing?

Groww partners with regulated US brokerage services such as DriveWealth LLC, which is a FINRA/SIPC member. This offers up to $500,000 in insurance for securities and cash—including $250,000 for cash claims—in the unlikely event of the broker's insolvency.

For example, if DriveWealth were to experience a failure, your investments held through Groww remain protected up to those SIPC limits. However, market risks or investment losses are not insured—always review the platform's security and compliance details before investing significant amounts.

What happens if there are regulatory changes affecting overseas investments?

Overseas investment rules may change due to revisions in RBI guidelines, SEBI advisories, or US regulations. In such cases, platforms like Groww may temporarily halt new fund transfers, require additional documentation, or restrict certain stock purchases to ensure compliance.

For instance, in February 2022, the RBI temporarily paused LRS-based mutual fund investments abroad, impacting flows through online brokers. Groww proactively updated users and resumed services once clarifications were issued. Staying informed via email alerts and official communication channels helps you adapt promptly to regulatory shifts.