Archive · 7 Nov 2025
Indian Investors Increasingly Look Abroad for Higher Returns
Many people in India want their money to grow faster than it is currently.
The investments in India have not been growing as much as they used to, and the earnings from Indian companies haven't been great.
Because of this, more and more people are looking to invest their money in other countries like America, Europe, and even places like Brazil and China.
There are now easy-to-use apps that let them buy stocks in these countries directly, which is much simpler than before.
The government allows people to send a certain amount of money out of India each year for things like investments.
Even though it's easier to invest abroad now, experts warn that it's important to do your homework.
There are different tax rules in other countries, and some markets might not be as clear or well-managed as India's.
So, while the potential for bigger earnings is attractive, it's important to be careful and understand the risks involved before investing overseas.
Indian investors are increasingly seeking higher returns by investing in global equity and debt markets beyond traditional destinations.
Underwhelming domestic market returns and a 4.7% gain in the Nifty 50 over the past year are key drivers for this shift.
DIY investment platforms have made it easier for Indian retail investors to access foreign markets, utilizing the RBI's Liberalized Remittance Scheme (LRS).
Brokers report significant year-on-year growth in overseas trade volumes and values, with participation expanding to markets like China and Brazil.
Experts caution investors about complexities including different tax regulations, corporate governance standards, and the need for thorough research when investing abroad.
- Who
- Indian retail investors
- What
- Increasingly investing in overseas equity and debt markets, including the US, Europe, Brazil, and China, in search of higher returns.
- When
- Latest data shows increases in August and October, with trends observed over the past year and current financial year.
- Where
- Global markets including the US, Europe, Brazil, China, and potentially other countries. Investment is facilitated through Indian brokers and platforms operating under the RBI's Liberalized Remittance Scheme (LRS).
- Why
- Underwhelming returns and earnings growth in India, coupled with the ease of access through digital DIY platforms and the availability of higher returns in foreign markets.
Advantages of Overseas Investing
Risks and Considerations for Overseas Investing
Return Potential and Diversification
Advantages of Overseas Investing
Indian investors are seeking higher returns due to underwhelming performance in domestic markets and are drawn to global markets like the US, Europe, Brazil, and China. Overseas investments offer access to innovative sectors like AI and semiconductors, which are underrepresented in India. Platforms like Vested Finance and Borderless make direct investment easier.
Risks and Considerations for Overseas Investing
Direct overseas investment requires significant due diligence. Investors must consider longer capital gains tax timelines (over two years) compared to India, and navigate complexities like inheritance tax, dividend withholding tax, and varying corporate governance and disclosure standards, especially in developing markets.
Investment Accessibility
Advantages of Overseas Investing
The proliferation of DIY platforms (Vested Finance, Borderless, Appreciate) has lowered the barrier for retail investors to access global markets, bypassing higher thresholds sometimes seen in places like GIFT City. The Liberalized Remittance Scheme (LRS) allows Indians to send up to $250,000 abroad for investments.
Risks and Considerations for Overseas Investing
Direct investing through platforms demands investors to conduct their own research. The mutual fund route for global exposure, previously common, is now limited due to a $7 billion industry cap, forcing investors towards direct routes which come with inherent complexities.
- Indian Equity Market Return (12 Months)
- 4.7%
- US S&P 500 Index Return (12 Months)
- 12.51%
- China CSI 300 Index Return (12 Months)
- 12.98%
- Brazil IBOVESPA Index Return (12 Months)
- 18.24%
- Germany DAX Index Return (12 Months)
- 22.58%
- Overseas Equity & Debt Investments as % of LRS Transfers (August)
- 5.7%
- Total LRS Investments in Equity & Debt (FY25)
- $1.6 billion
- Appreciate Wealth Overseas Trade Value Growth (YoY, October)
- 164%