How to Buy US Stocks from India: A Complete Guide

Imagine watching shares of Tesla, Microsoft, or Apple surging while feeling left out, believing those opportunities are reserved only for American investors. For many in India, navigating the world of international stocks can seem daunting, riddled with questions about regulations, costs, and complex tax rules.

Yet investing in US stocks is far more accessible than it first appears, offering Indian investors the chance to diversify portfolios, tap into the world’s largest companies, and potentially boost long-term returns. From regulatory requirements and account setup to transfer costs and practical tax implications, getting started does require some legwork. With a clear grasp of the essentials, retail investors and budding traders can confidently step onto the global stage and make informed decisions for their financial future.

Breaking beyond borders isn’t just about daring dreams—it’s about knowing how to turn rupees into Wall Street returns. For Indian investors, mastering the art of buying US stocks is the gateway to global financial growth.

Invest in US Stocks from India Online

1. Understanding the Benefits of Investing in US Stocks from India

Many Indian investors are increasingly looking beyond domestic markets to diversify their portfolios. US stocks, known for their stability and potential for long-term growth, are becoming an attractive option due to the unique benefits they offer global investors. The US stock market is home to some of the world’s most valuable and innovative companies, making it a preferred choice for those seeking both diversification and growth potential.

Diversification and Global Exposure for Your Investment Portfolio

Adding US stocks to your portfolio means exposure to a broader range of sectors and economies. For example, while India's stock market is heavily weighted towards sectors like finance and IT, the US market offers significant allocations in technology, healthcare, and consumer goods. This diversification can reduce overall risk, as events impacting one market or sector may not equally affect another.

Potential to Invest in Leading International Companies

Investing in US stocks gives Indians access to household names with global influence. By owning shares in companies like Apple, Google (Alphabet), Amazon, or Tesla, Indian investors can benefit from these firms’ international revenues and innovation. For perspective, Apple’s market cap surpassed $3 trillion in 2023, making it larger than the entire Indian stock market for several months of the year.

Opportunities for Better Returns and Risk Management

The US equity market has historically outperformed many emerging markets, including India, over long periods. For instance, the S&P 500 has delivered an average annualized return of around 10% over the past century. While past performance does not guarantee future results, this track record highlights potential growth opportunities not available in Indian markets alone.

Hedge Against INR Depreciation and Domestic Market Risks

Investing in US stocks can also act as a natural hedge against rupee depreciation. When the Indian rupee weakens against the US dollar, the value of US equity holdings tends to increase in rupee terms, cushioning investors against currency volatility. In 2022, the rupee fell nearly 10% against the dollar. Investors with dollar-denominated assets saw their portfolios maintain value even as domestic markets faced challenges.

2. Key Considerations Before You Begin

Investing in US stocks from India can be rewarding, but there are several critical factors to weigh before you initiate the process. Regulatory requirements, taxation policies, currency conversion fees, and inherent international market risks all play a significant role in shaping your investment outcomes.

RBI Regulations Under Liberalised Remittance Scheme (LRS)

The Reserve Bank of India governs overseas investments through the Liberalised Remittance Scheme (LRS). As of 2025, the LRS allows Indian residents to remit up to $250,000 per financial year for foreign investments and other purposes. This cap includes all forms of remittance such as buying US stocks, international property, or even travel expenses.

If you plan to allocate significant capital, it's important to track your annual remittances carefully. For example, an Indian investor using platforms like INDmoney or Vested to buy US equities should ensure cumulative transactions don't breach the yearly limit, including fees and charges.

Taxation Policies for Indian Investors in US Stocks

Understanding the dual taxation structure is crucial. Capital gains from US equities are taxable in India: long-term (over 24 months) at 20% with indexation, and short-term as per your income tax slab. Dividends from US shares are taxed at a flat 25% by the US IRS, with the benefit of an India-US Double Taxation Avoidance Agreement (DTAA).

As an example, if you earn $500 in dividends from Apple shares, $125 will be withheld in the US, but you can claim credit for this when filing taxes in India.

Currency Conversion and Forex Charges

International investments involve conversion from INR to USD, incurring associated forex charges. Indian banks may charge between 0.5% to 2% above the interbank rate per transaction, which can impact your overall returns.

For instance, if you invest ₹10 lakh (approx. $12,000) in S&P 500 ETFs, you could pay up to ₹20,000 just in conversion fees. Online platforms like INDmoney often display real-time conversion rates and fees, helping you make informed comparisons.

Risks Associated with Investing in International Markets

Cross-border investments come with added volatility and regulatory complexities. Currency fluctuations can erode gains even if US stocks perform well; for example, in 2022, the INR depreciated by nearly 10% against the USD, impacting Indian investors' net dollar returns.

International market conditions, such as interest rate hikes by the Federal Reserve or new US regulations for foreign investors, can further affect stock valuations and liquidity. Always assess risk appetite and diversify your portfolio to mitigate such uncertainties.

3. Choosing the Right Method to Invest in US Stocks

3. Choosing the Right Method to Invest in US Stocks

Accessing US stock markets from India has become significantly easier in recent years. Thanks to liberalized regulations and modern trading platforms, Indian investors now have multiple avenues to participate in global equities. Each method comes with its own set of benefits and considerations—selecting the right approach depends on your investment goals, experience level, and the amount you wish to allocate.

Direct Investment through US Stock Brokers in India

Many Indian investors prefer creating accounts with US-based stock brokers that accept Indian clients, such as Interactive Brokers or Charles Schwab. This approach often offers access to a broad range of US-listed stocks, low commission rates, and advanced trading tools. For example, Interactive Brokers allows Indians to open an account, maintain multi-currency balances, and invest directly in shares of Apple or Microsoft.

However, due diligence is essential. You'll need to comply with RBI’s Liberalized Remittance Scheme (LRS), which currently permits up to $250,000 USD per financial year per individual for foreign investments. Account setup may require extensive documentation, and you’ll be responsible for tax reporting on any US capital gains.

Investing in US Stocks via Indian Brokerages (International Platforms)

Several Indian brokerages provide international investing platforms in partnership with US brokers. Zerodha, ICICI Direct, and HDFC Securities offer services like Vested, Stockal, and Global Investing. These platforms simplify compliance and fund transfers and present a curated list of US stocks, ETFs, and pre-built portfolios tailored for Indians.

For instance, ICICI Direct's Global Investment platform lets clients invest as little as $1 in popular US tech stocks and tracks portfolio performance in INR. These platforms often include educational resources and seamless integration, though they might have higher fees or limited stock selections compared to directly registering with a US broker.

Exploring Exchange-Traded Funds (ETFs) and Mutual Funds with US Exposure

If managing international accounts sounds complex, consider India-listed ETFs and mutual funds that invest in US equities. SBI Mutual Fund Nifty U.S. Equity FOF and Motilal Oswal Nasdaq 100 ETF allow investors to gain indirect exposure to US markets using their regular Demat accounts and Indian rupees.

These products offer diversification and professional management, with minimum investments starting around Rs 500. In February 2023, Motilal Oswal’s Nasdaq 100 ETF held over Rs 3,000 crore in assets, underscoring strong investor demand. However, note that you’re investing in Indian units that mirror US asset performance—you won’t hold individual US stocks directly.

Fractional Shares and Alternative Investment Platforms

Many leading platforms now allow fractional share investing, which means you can buy a portion (not just one full share) of expensive stocks like Alphabet or Amazon. This democratizes access, letting new investors start with smaller amounts. For example, Vested allows Indian users to buy fractions as small as 0.0001 shares of Tesla.

Alternative platforms such as INDmoney aggregate international investing with other wealth management features. While these options provide flexibility and lower entry barriers, investors should review platform fees, compliance obligations, and underlying product risks before proceeding.

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4. How to Select a US Stock Broker in India

Investing in the US stock market from India has become increasingly accessible, with a range of brokers catering to Indian residents. Choosing the right broker is vital, as it affects your costs, experience, and access to the US markets. Understanding the available options and selection criteria helps investors make informed decisions aligned with their financial goals.

Popular US Stock Brokers for Indian Investors

Indian investors can access US markets through dedicated international brokers or domestic platforms with global tie-ups. Notable examples include Vested, Stockal, Interactive Brokers, and INDmoney. For instance, Interactive Brokers (IBKR) offers direct access to over 135 global markets, while Vested provides curated US stock portfolios and fractional investing. Each platform varies in terms of product offerings and ease of use, catering to different investor needs. More details on these brokerage routes are discussed in Best Ways To Invest In US Stocks From India.

Criteria for Comparing and Choosing a Broker

Comparing brokers involves looking closely at fees, platform usability, and support. For example, Vested charges a transfer fee of $11 per withdrawal, while Interactive Brokers is known for its low trading commissions but has a more complex interface suited for experienced traders. Consider whether the broker provides research tools, mobile access, and responsive customer support.

It's helpful to list your priorities: frequent traders may care more about per-trade fees, while beginners might prioritize an intuitive mobile app and strong educational resources. Always check for hidden charges such as conversion fees and maintenance costs.

Regulatory Compliance and Investor Protection

Regulatory oversight safeguards your capital. Reputable brokers like Interactive Brokers and Charles Schwab are registered with US regulatory bodies such as the SEC and FINRA. For Indian residents, it’s important to ensure the broker complies with Reserve Bank of India’s Liberalised Remittance Scheme (LRS) for overseas investments.

Look for membership in investor protection schemes such as the US SIPC (Securities Investor Protection Corporation), which insures funds up to $500,000 in the event of broker insolvency. Not all platforms offering US stocks to Indians offer equal protection—always verify before committing funds.

Account Opening Process and Required Documents

Most brokers allow online account opening but the process and documentation can vary. Typically, you'll need your PAN card, Aadhaar card, passport, recent utility bill for address proof, and a recent bank statement. For example, Vested and INDmoney allow full KYC and onboarding in less than 10 minutes via their apps, making the experience seamless.

However, delays can occur if documents are blurry or details don’t match, which is a common mistake. Double-check information before submission and keep digital copies of all paperwork to speed up verification.

Best Brokers to Invest in US Stocks from India in 2025

5. Step-by-Step Process to Buy US Stocks from India

5. Step-by-Step Process to Buy US Stocks from India

Indian investors have access to US stock markets through several digital platforms and regulated processes. Understanding each step ensures compliance with regulations, cost efficiency, and seamless transactions. Let’s walk through the major stages from registering an account to executing your first US stock trade.

Registering and Verifying Your Brokerage Account

To get started, you must open an account with a brokerage that facilitates international trading. Firms such as Zerodha, Upstox (in partnership with Vested), or global brokers like Interactive Brokers and Charles Schwab offer this service. Account setup typically requires submitting a PAN card, proof of address, and bank details for KYC checks.

For example, Interactive Brokers supports Indian residents and requires you to upload scanned documents for identity and address validation. A common error is mismatched names between your PAN card and passport—double-check these before submission to avoid delays.

Funding Your Account and Remittance Options

Once your account is active, fund it using approved remittance channels. Under the RBI’s Liberalised Remittance Scheme (LRS), you can remit up to USD 250,000 annually. Most Indian banks like HDFC or ICICI offer outward remittance services for this purpose.

When funding, clarify remittance purpose codes (such as S0023 for investments). A wrong selection may delay transfers or attract compliance queries from your bank.

Navigating Currency Exchange and Wire Transfers

Currency conversion is necessary since your trading will be in US dollars. Banks charge forex markups, usually ranging from 1.5% to 2.5% above the interbank rate. For instance, if the exchange rate is 83.0 INR per USD, you may end up paying up to 85 INR per dollar after markups and transfer fees.

Always compare total costs across remittance providers. Platforms like Wise (formerly TransferWise) disclose full fees upfront, which helps you minimize expenses.

Placing Your First Trade in US Stocks

With funds credited to your US brokerage account, you can now search and buy shares of companies like Apple (AAPL), Tesla (TSLA), or Amazon (AMZN). Real-time stock prices and research tools are available on platforms like Vested or Interactive Brokers, simplifying the decision-making process for Indian investors.

For beginners, start with fractional shares or ETFs to diversify. Double-check order types—market or limit order—to control trade execution. If you’re unsure, many platforms offer demo accounts or customer support to walk you through your first US stock purchase.

How to Invest in US Stocks from India

6. Understanding the Costs Involved

Investing in US stocks from India can be rewarding, but it’s crucial to account for all the associated costs before making any trades. These expenses aren’t always obvious upfront, yet they can significantly influence your net returns over time. Here’s a thorough look at the primary charges investors should be aware of—with practical examples to help you make informed decisions.

Brokerage Charges and Annual Maintenance Fees

Most international brokerage platforms such as Interactive Brokers, Charles Schwab, and Vested charge transactional fees each time you buy or sell a US stock. For example, Interactive Brokers may charge anywhere from $0.005 to $0.01 per share, subject to a minimum per order. Over multiple trades, these fees add up, especially for active traders.

Annual account maintenance fees also vary. Charles Schwab, for instance, typically does not levy annual maintenance charges, which appeals to long-term investors. In contrast, some brokers catering to Indian investors, like ICICI Direct, often impose annual account maintenance charges of around ₹1,000 to ₹1,500, impacting your bottom line for holding costs.

Foreign Exchange (Forex) Conversion Fees

Converting INR to USD is mandatory when investing from India in US equities, and banks or brokerage platforms will charge a forex spread. HDFC Bank, for example, can charge between 1.5% and 2.5% above the prevailing exchange rate on such currency conversions. If you remit ₹1,00,000 using this service, you could potentially lose ₹1,500 to ₹2,500 just on currency conversion alone.

Transfer Taxes, Commissions, and US SEC Fees

In addition to local costs, certain US regulatory fees apply per transaction. The US Securities and Exchange Commission (SEC) mandates a minimal fee—about $22.90 for every $1,000,000 of principal traded, which, while small, can matter to high-volume investors.

Don’t overlook transfer taxes or commissions that some platforms charge for moving funds between India and your US brokerage account. For instance, the Reserve Bank of India’s Liberalized Remittance Scheme (LRS) may involve a tax collected at source (TCS) of 5% on remittances above ₹7 lakh per financial year. These indirect expenses shouldn’t be underestimated.

Hidden Charges and Tips to Minimize Costs

Beyond the obvious, hidden charges can erode returns over time. Examples include inactivity fees if your account remains idle for a period (seen with some global brokers), or custodial fees for holding certain foreign scrips. Many investors are caught unaware by these costs.

To keep expenses in check, compare at least three brokerages for their all-in pricing structure before settling. For regular traders, using platforms like Interactive Brokers—known for their transparent, low-cost structure—can lead to significant savings. Always read the fee schedules carefully and ask support teams for a detailed cost breakdown before investing.

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7. Legal, Tax, and Compliance Aspects

7. Legal, Tax, and Compliance Aspects

Overview of Tax Obligations (US Taxes, Indian Income Tax, DTAA)

Investors who are Indian residents trading U.S. stocks need to be aware of tax responsibilities in both countries. The United States taxes non-resident Indians (NRIs) on U.S.-sourced dividends at a flat 25% rate, deducted at source by U.S. brokers. However, the Double Taxation Avoidance Agreement (DTAA) between India and the U.S. may allow Indian residents to claim credit for taxes paid in the U.S., reducing their overall tax liability in India.

For example, if an Indian investor receives $1,000 in annual dividends from Apple Inc., approximately $250 would be withheld by the U.S. under tax rules. The investor would then need to declare this income in India and could typically claim a credit against Indian tax for the amount already paid, following DTAA provisions.

Dividend Income and Capital Gains Tax Implications

Taxation on dividend and capital gains differs substantially. While dividend taxation is relatively straightforward, capital gains tax depends on the holding period. Short-term capital gains (shares held for one year or less) from U.S. equities are added to the investor’s income and taxed at the applicable slab rate in India.

Suppose an Indian resident buys 10 shares of Microsoft and sells them within six months for a profit of $500. This profit would be taxed according to the individual's Indian income tax slab. For long-term holdings (typically over 24 months for foreign shares), gains are taxed at 20% with indexation benefit.

Annual Reporting Requirements for Indian Residents

Complying with annual tax reporting is essential. Indian laws require residents to disclose foreign assets, including brokerage accounts, under Schedule FA in the Income Tax Return. Non-disclosure can lead to hefty fines under the Black Money Act.

For example, in the 2022 assessment year, a Bengaluru-based investor forgot to report their U.S. broker account holding Tesla shares. Upon scrutiny, the penalty imposed exceeded ₹10 lakh. Using tax filing platforms like ClearTax or consulting with professionals well-versed in cross-border taxation can help prevent costly oversights.

Staying Compliant with Regulations and Audit Trails

Ensuring compliance with the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS) is vital. Indian residents investing abroad must route transactions through authorized banks and adhere to the $250,000 annual LRS cap. Maintaining clear audit trails—bank statements, contract notes, and broker reports—is crucial in case of a regulatory review.

Using organized digital recordkeeping tools like QuickBooks or Excel spreadsheets helps investors demonstrate transparency and ease the process during audits. For instance, when the Income Tax Department requested documentation for a Mumbai-based trader’s U.S. transactions in 2023, timely and well-documented records helped the trader close the inquiry without penalties. This discipline is key for peace of mind and legal security.

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8. Tips for Successful International Investing

Investing in international markets, especially in US stocks, allows Indian investors to diversify their portfolios and tap into global growth opportunities. However, navigating foreign markets comes with unique challenges, from currency fluctuations to different regulations. Strategizing with a clear understanding of these aspects is crucial for long-term success.

Researching and Picking the Right US Stocks

Thorough research is foundational when choosing US stocks. Analyze companies with solid financials, consistent earnings growth, and a global reputation. For example, Apple (AAPL), with a five-year average revenue growth rate of around 8.5%, remains a popular pick for international investors due to its innovative product pipeline and robust balance sheet.

Leverage tools like Yahoo Finance, Morningstar, or Bloomberg for in-depth financial data and US company news. Many Indian investors also consider exchange-traded funds (ETFs), such as the Vanguard S&P 500 ETF (VOO), which tracks major US companies and offers diversification through a single investment.

Portfolio Allocation and Risk Management Strategies

Allocating your portfolio wisely helps balance potential rewards and risks. Experts suggest limiting international assets to 15-25% of your total portfolio to optimize diversification without overexposure. For instance, a retail investor with ₹10 lakh in investable assets might allocate ₹1.5–2.5 lakh to US equities, reducing risk from currency swings or US-specific economic downturns.

Implement stop-loss strategies and consider setting regular reviews to reassess your exposure. Spreading investments across sectors—such as technology, healthcare, and consumer discretionary—can help absorb shocks from sector-specific volatility.

Tracking Performance and Rebalancing

Monitoring your international holdings ensures your portfolio stays aligned with your financial goals. Use apps like Groww or INDmoney, which are built for Indian investors tracking global assets, to view real-time performance, track overall allocation, and identify any drift from your target mix.

Rebalance your portfolio at least annually. For example, if booming US tech stocks have raised your US allocation from 20% to 30%, consider selling a portion to return to your target. This discipline helps lock in gains and maintain risk levels.

Avoiding Common Mistakes for Indian Investors

Common pitfalls include over-concentration in a single stock or sector, ignoring currency exchange risks, and failing to consider US tax implications. In 2020, many new Indian investors rushed into Tesla (TSLA) after its massive rally, only to face sharp volatility and correction in 2022. Spreading investments reduces such risks.

Always be aware of the cost of remittance, US withholding tax on dividends (typically 25% for Indian residents), and ensure all foreign income is reported in your Indian tax returns. Consulting with a financial advisor familiar with international investing regulations can help you avoid compliance issues and costly mistakes.

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Conclusion

Recap: Starting Your Journey Investing in US Stocks from India

The opportunity to invest in US stocks from India unlocks access to some of the world's largest and most influential companies. With platforms like Vested, INDmoney, and ICICI Direct Global, Indian investors can seamlessly open overseas trading accounts and buy shares of firms such as Apple, Tesla, or Microsoft. For example, Vested reported over $250 million in transactions by Indian users in 2022, reflecting growing interest in global equities.

However, it's crucial for first-time investors to carefully review minimum investment requirements, fees, and currency conversion rates before making their first international trade.

Compliance and Due Diligence: Essentials for Cross-Border Investing

Navigating international investments means staying compliant with government regulations such as the Liberalised Remittance Scheme (LRS) by the Reserve Bank of India. For instance, under the current LRS cap, individuals can remit up to $250,000 per year for investments abroad. Violating these regulations—such as exceeding annual limits or failing to disclose remittances—can result in penalties or restrictions.

Always verify the legitimacy of the broker you work with. Only use platforms registered with leading regulatory authorities like FINRA or the SEC in the US. For example, Interactive Brokers is both well-regarded and fully regulated in both countries.

The Importance of Diversification

Smart investing is as much about managing risk as it is about seeking returns. Diversifying across sectors, geographies, and asset classes is foundational. For example, beyond US tech giants, adding US healthcare ETFs like the Vanguard Health Care ETF (VHT) or S&P 500 index funds helps buffer against sector-specific volatility.

Well-diversified portfolios have historically weathered global downturns better—during the 2020 pandemic, diversified portfolios with balanced US and Indian equity exposure declined less sharply and rebounded faster than narrowly focused investments.

Leverage Global Markets with Informed Decisions

Global investing empowers Indian investors to broaden their horizons, but success hinges on informed decision-making. Stay updated on market trends using reliable sources such as Seeking Alpha and the WSJ, and leverage tools from trusted platforms—Zerodha Varsity, for instance, offers comprehensive tutorials on global equity investing.

By applying due diligence, understanding risks, and diversifying holdings, modern investors can confidently tap into the potential of US markets and strengthen their overall financial futures.

FAQs

Investing in US stocks from India is growing in popularity as Indian investors look to diversify their portfolios with global exposure. The process has become more accessible, yet there are important legal guidelines, taxation rules, and practical steps to consider. This FAQ section addresses common queries with specific examples to guide you.

Is it legal to buy US stocks from India?

Yes, it's completely legal for Indian residents to invest in US stocks. The Reserve Bank of India's (RBI) Liberalized Remittance Scheme (LRS) allows individuals to remit up to $250,000 per financial year for overseas investments, including purchasing stocks in the US market.

For instance, platforms like Vested, INDmoney, and Groww offer services that enable direct investment in companies such as Apple, Tesla, or Microsoft. These brokers typically partner with US-based custodians to facilitate the process as per regulations.

How much money can I send abroad to invest in US stocks as per RBI guidelines?

The RBI permits individuals to remit up to $250,000 each financial year under the LRS for purposes like investing in foreign equities. This cap includes all overseas transfers, not just stock investments. Families often combine allowances—so a couple could remit $500,000 jointly within one year.

Popular platforms will typically prompt you to adhere to these limits during onboarding, and Indian banks such as HDFC and ICICI have streamlined the remittance process for investing in the US stock market.

What taxes do Indian investors need to pay on US stock investments?

Indian investors must pay taxes both in the US and in India for US stock investments. The US government charges a 25% tax on dividends (withheld at source), which needs to be accounted for during tax filing in India.

Capital gains on US stocks are taxed as per Indian income tax rules. For example, long-term capital gains (held >24 months) are taxed at 20% with indexation benefit, while short-term gains are added to your income slab. Tax software like ClearTax and Koin help track and report these obligations efficiently.

Which is better: investing directly or via mutual funds/ETFs?

Both direct and indirect approaches have unique benefits. Investing directly allows you to choose stocks like Alphabet or Amazon individually, which offers customization but requires more research and risk tolerance.

Mutual funds or international ETFs such as Motilal Oswal Nasdaq 100 ETF, available on NSE, let you gain exposure to diversified portfolios with minimal research. These options are best for investors seeking low effort and automatic diversification.

How long does it take to open an account and begin trading US stocks?

Today, opening an account with platforms like Vested or INDmoney is largely digital and requires uploading your KYC documents and PAN card. Approval times vary, but most accounts are activated in 1-3 working days.

Once your account is funded via LRS-compliant remittance, you can usually start trading within 24 hours after the funds are credited. Some brokers, such as ICICI Direct Global, offer instant access to US markets once onboarding is complete.

What are the biggest risks when investing in US equities from India?

Key risks include currency fluctuations, geopolitical issues, and regulatory changes. If the Rupee weakens against the Dollar, your returns (when converted back to INR) could diminish. For example, during 2022's market volatility, the INR depreciated nearly 8%, affecting net profits for Indian investors in US tech stocks.

Additionally, access to data or account redressal may take longer than domestic investing. Always use RBI-authorized platforms, and consider international diversification to reduce risk exposure—don't concentrate all funds in one market or sector.