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Indian investors are no longer restricted to local stock markets. With rising awareness, easier access and the need for diversification, many individuals are turning to Global ETFs to invest in international markets. These ETFs offer exposure to global indices, sectors and economies without opening a foreign brokerage account.
But what is the right way to get started?
In this blog, we’ll break down the step by step process to invest in Global ETFs from India including the platforms available, regulatory guidelines and things to keep in mind before investing globally.
What Are Global ETFs?
Global ETFs are investment instruments, track international indices such as S&P 500, NASDAQ100 and MSCI World Index. These ETFs are traded on stock exchanges just like regular shares, making a convenient and cost effective way to invest in global markets.
They offer broad geographical diversification by providing exposure to global economies including US, UK, Europe and other developed or emerging markets. Sector wise investors can tap into high growth areas such as technology, healthcare, financial services and energy.
Global ETFs also allow Indian investors to indirectly own shares of global companies like Apple, Tesla, Microsoft, Amazon and more without opening an overseas trading account.
In addition to diversification, global ETFs help hedge against domestic market risks and currency depreciation of the Indian Rupee.
Ways to Invest in Global ETFs from India
Indian investors can invest in international ETFs using the following methods:
- Indian Mutual Funds with Global Exposure
Many Indian mutual fund houses offer Fund of Funds (FoFs) that invest in overseas ETFs or global index funds. These FoFs are managed by Indian AMCs but track international indices such as S&P 500, NASDAQ-100 or MSCI World. You can invest in them through mutual fund platforms, apps or brokers. These funds are regulated by SEBI and follow Indian taxation rules, making them a convenient option for first time global investors.
- Global ETFs Listed on Indian Stock Exchanges
Some international ETFs are listed directly on Indian exchanges. These ETFs mirror global indices and are traded in INR, removing the need for foreign currency transactions. You can invest in them through your Demat and trading account, just like Indian ETFs or stocks. This option is cost effective, easy to access and ideal for investors looking for global diversification without complex procedures.
- Direct Investment through Foreign Brokers under LRS
Under RBI’s Liberalised Remittance Scheme (LRS), Indian residents can invest up to USD 250,000 per financial year in foreign assets. Several international brokerage platforms (such as Vested, INDmoney or Stockal now Borderless.world ) offer direct access to ETFs listed on foreign exchanges like NASDAQ and NYSE.
To begin, you need to complete KYC, link your Indian bank account, convert INR to USD and fund your global brokerage account. While this method gives access to a wider range of ETFs, it involves currency conversion and foreign exchange charges.
There are two primary ways to invest in global ETFs from India:
- Direct Route: Use international investing platforms such as Vested, INDmoney or Stockal to buy ETFs listed on global stock exchanges like NYSE or NASDAQ. These platforms facilitate investing in U.S listed ETFs directly.
- Indirect Route: Invest in Indian mutual funds or ETFs that offer exposure to global indices like S&P 500, Nasdaq 100 or MSCI World Index. These can be accessed through your Indian brokers.
You must have a valid PAN, Aadhaar and an active bank account. For direct investments, register under the RBI’s Liberalised Remittance Scheme (LRS), which permits overseas investments of up to USD 250,000 per financial year. Confirm that your bank supports LRS-enabled transactions.
For direct investing, sign up on a global investing app or platform that partners with SEBI registered or U.S licensed brokers. These platforms assist with KYC, LRS documentation and currency conversion. For indirect investing, use your existing Demat and trading account.
Transfer funds in INR, which the platform will convert to USD for direct investments. For mutual funds or Indian global ETFs, you can invest directly in INR through your local broker.
Choose global ETFs based on your financial goals and risk appetite. Focus on parameters such as sector allocation, past performance, fund size and expense ratio. Make sure ETF aligns with your longterm investment objectives.
Regularly track ETF performance. Capital gains and dividends from global ETFs are taxable in India. You may also be eligible for foreign tax credits, depending on the double taxation treaty.
Popular Global ETFs in India
Here’s a list of best Global ETFs available in India.
| Name | 1 Yr Return | 3 Yr Return | 5 Yr Return | Expense Ratio |
|---|---|---|---|---|
|
Motilal Oswal Nasdaq 100 ETF
|
13.36%
|
85.68%
|
153.01%
|
0.58%
|
|
Mirae Asset NYSE FANG+ETF |
40.24%
|
240.59%
|
167.12%
|
0.65%
|
|
Mirae Asset S&P 500 Top 50 ETF |
23.60%
|
108.45%
|
93.51%
|
0.60%
|
|
Nippon Hang Seng ETF
|
23.80%
|
26.06%
|
7.87%
|
0.39%
|
|
Mirae Asset Hang Seng Tech ETF |
53.02%
|
44.87%
|
12.12%
|
0.56%
|
|
Motilal Oswal Nasdaq Quality 50 ETF |
12.73%
|
41.66%
|
10.08%
|
0.46%
|
As of 13 June 2025
Taxation on Global ETF Investments
Global ETFs are taxed based on the nature of the fund (equity or debt), the holding period, and the type of income generated.
- Equity Oriented Global ETFs
- Long-Term Capital Gains (LTCG): Gains exceeding ₹1 lakh in a financial year after a holding period of one year are taxed at 12.5% without indexation.
- Short Term Capital Gains (STCG): Gains from units sold before one year are taxed at 20%.
- Debt Oriented Global ETFs: These are taxed as per the investor’s income tax slab, regardless of the holding period. No LTCG benefit applies.
- Dividend Income: Dividends received from Global ETFs are added to the investor’s income and taxed as per the applicable income tax slab rate.
- Withholding Tax: Many countries deduct withholding tax on dividends paid from foreign investments. However, India has Double Taxation Avoidance Agreements (DTAA) with several countries, which allow investors to claim tax credits or deductions to avoid paying tax twice on the same income.
Final Words
Investing in global ETFs provides Indian investors an opportunity to diversify their portfolios across international markets, sectors and currencies. With multiple routes available such as Indian mutual funds investing in international ETFs, locally listed global ETFs or direct investments via platforms offering global access, entering global markets has become easier than ever. However, investors should carefully evaluate each option based on their risk appetite, investment goals, expense ratios,and ease of access.
It’s important to stay informed about foreign exchange rates, taxation rules on international investments and any regulatory guidelines set by SEBI or RBI. With the right research and disciplined approach, global ETFs can build a balanced and diversified investment portfolio.
Frequently Asked Questions
Is foreign investment taxable in India?
Yes, foreign investments are taxable in India. Profits are taxed as per capital gains rules and you must report them while filing your income tax return.
Are Indians taxed on global income?
Yes, if you are a resident Indian, your global income is taxable in India. You must declare income earned from abroad in your income tax filings.
Why invest in a global ETF?
Global ETFs help you diversify across international markets, reduce country specific risk and tap into global growth opportunities,including sectors not available in India.
Can I invest in global ETFs from India?
Yes, Indian investors can invest in global ETFs through Indian mutual funds, local ETFs or by using platforms that allow overseas investments under the LRS route.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
