I still remember the day I made my first investment decision. I was 23, sitting in my apartment with ₹50,000 in savings, staring at my laptop screen. On one tab, I had information about Indian stocks Reliance, TCS, HDFC Bank companies I knew and used every day. On another tab, I was reading about US stocks Apple, Amazon, Google companies whose products I also used daily.
My friend Santu was investing only in Indian stocks. “Why would you invest abroad when India is growing so fast?” he’d say. My colleague Priya was putting everything into US markets through mutual funds. “The dollar appreciation alone will give you returns,” she’d argue. I spent three sleepless nights researching, comparing, and honestly, overthinking. That confusion eventually led me on a five-year investing journey where I tried both markets, made mistakes in both, earned money in both, and finally figured out what actually works. Today, I’m going to share everything I learned about investing in India vs US stock markets not as some expert with a fancy degree, but as someone who started exactly where you are now and learned through real experience, real money, and real mistakes.
My Journey: How I Invested in Both Markets
Mr Subhankor & Santu
Let me start by telling you what I actually did, so you understand where my perspective comes from.
Year 1 (2020): All India, All In
I started by investing ₹30,000 in Indian stocks and mutual funds:
- ₹10,000 in Nifty 50 index fund
- ₹10,000 in a large-cap mutual fund
- ₹10,000 in individual stocks Reliance, TCS, Infosys
Year 2 (2021): Discovering US Markets
After my beginner’s luck in India, I got curious about US stocks. I opened an international investing account and put ₹1,00,000 into:
- S&P 500 index fund
- Individual US tech stocks (Apple, Microsoft, Amazon)
Result: Made another 25-30% returns. Now I was convinced I’d figured out investing (spoiler: I hadn’t).
Year 3 (2022): The Reality Check
Both markets corrected. My Indian portfolio dropped 15%, my US portfolio dropped 20% (plus the rupee strengthened, making my dollar losses worse in rupee terms). This is when I learned my most valuable lessons not from gains, but from losses.
Year 4-5 (2023-2024): Finding Balance
I stopped trying to pick winners and started building a balanced portfolio:
- 60% in Indian markets (index funds + some stocks)
- 30% in US markets (mainly S&P 500 index)
- 10% kept in liquid funds for emergencies
Today: My portfolio has grown steadily, and more importantly, I sleep peacefully at night. I’m not chasing maximum returns I’m building sustainable wealth.
The Factors That Actually Matter for Beginners
After five years, these are the factors that genuinely made a difference for me:
Factor 1: Your Investment Amount
If You’re Starting With ₹10,000-50,000: Honestly, stick to India. The hassle of international investing, currency conversion fees, and complexity isn’t worth it for small amounts.I started with India and only moved to US once I had ₹2-3 lakhs to invest.
If You’re Starting With ₹1 Lakh+: Consider splitting: 70% India, 30% US.
Factor 2: Your Investment Horizon
Short-Term (1-3 years): Indian markets might be better faster growth potential, no currency risk uncertainty.Long-Term (10+ years): US markets have shown incredible consistency. The compounding + dollar appreciation over decades is powerful.
My Approach: Short-term goals → Indian debt/equity Long-term goals → Mix of India and US
Factor 3: Your Risk Tolerance
Lower Risk Tolerance: US markets (especially S&P 500) are relatively more stable. Plus, you’re diversified globally.Higher Risk Tolerance: Indian markets offer higher growth potential. Mid-caps and small-caps can multiply faster.My Comfort Level: I’m moderate risk. So 60% India (for growth) + 30% US (for stability) + 10% liquid (for emergencies).
My Investment Process:
Every Month:
- Fixed SIPs run automatically
- I don’t check portfolio daily (once a week max)
- I rebalance once per year if needed
When Market Crashes:
- I don’t sell (learned this the hard way)
- If I have extra money, I invest more
- I remind myself why I invested in the first place
When Market Rallies:
- I don’t get greedy and over-invest
- I stick to my SIP amounts
- I book some profits if allocation gets too skewed
Conclusion:
By Subhankor
Five years ago, I was paralyzed by the India vs US decision. Today, I realize I was asking the wrong question. The right question isn’t “India OR US?” The right question is “How much India and how much US based on MY situation?” Here’s what I genuinely believe after five years of real investing: For beginners, start with India. It’s simpler, more accessible, and you’ll learn faster. Get comfortable with basics what’s an index fund, how SIPs work, how to handle market crashes, how to control emotions.Once comfortable (6-12 months), add US exposure. Start small 20-30% of your equity portfolio. This gives you global diversification, currency hedge, and access to companies driving world innovation.Long-term, maintain both. My sweet spot is 60% India, 30% US, 10% liquid. This gives me growth potential of India, stability of US, and emergency cushion for peace of mind.But most importantly: Don’t let the India vs US debate stop you from investing at all. The biggest mistake isn’t choosing the wrong market it’s not starting because you’re trying to make the perfect choice.
Frequently Asked Questions
Q1: Can I lose my money if I invest in US markets and the rupee strengthens?
A: Yes, currency risk works both ways. If you invest $1,000 when the dollar is ₹83 and it falls to ₹75, you’ll lose money in rupee terms even if the stock price stays same. However, historically over long periods (10+ years), the rupee has depreciated against the dollar. Short-term fluctuations happen, but long-term trend has favored dollar appreciation for Indian investors.
Q2: Is it legal for Indians to invest in US stocks?
A: Absolutely legal. Under RBI’s Liberalized Remittance Scheme (LRS), any Indian resident can remit up to $250,000 per financial year for overseas investments. You need to pay TCS (Tax Collected at Source) on amounts above certain limits, but it’s completely legal and thousands of Indians do it.
Q3: How much money should I have before investing in US stocks?
A: Technically, you can start with any amount. However, I recommend having at least ₹1-2 lakhs invested in Indian markets first to understand basics. Then start US investing with $100-200/month. The currency conversion and account fees make very small amounts inefficient.
Disclaimer
By Subhankor
The information provided in this blog post is based on my personal experiences as an individual investor in both Indian and US stock markets. It is intended for educational purposes only and should NOT be considered professional financial advice, investment recommendations, or personalized guidance.All stock market investments carry substantial risk, including potential loss of principal. Both Indian and US markets can be volatile. Past performance (including my own returns mentioned) does not guarantee or predict future results.This blog shares one person’s journey and learnings. Your journey will be different. There is no one “right” answer to the India vs US question only what’s right for your unique situation, goals, and risk tolerance.
