A major shift is happening in how Indians save and invest their money. The latest data released this week by Vested Finance, a platform that helps Indians invest in the US stock market, reveals a surprising trend. It is no longer just the people in Mumbai, Delhi, or Bangalore who are buying shares of Apple, Tesla, or Google. A huge wave of investors is now coming from smaller towns and cities.
According to the “How India Invested Globally 2025” report released on Monday, nearly 47% of Indians investing in global markets now come from Tier 2 and Tier 3 cities.
Here is a detailed look at this new financial trend, what Indians are buying, and why this matters for your wallet.
Key Findings from the Vested Finance Report
The report highlights that the hunger for foreign assets has penetrated deep into India’s geography.
- Wide Reach: Investors from 145 cities across India are now active on the platform.
- The Rise of ‘Bharat’: While metros still hold the majority, the gap is closing fast. Almost half of the new investors hail from places like Indore, Surat, Kochi, Bhubaneswar, and Jaipur.
- SIP Culture: Just like in Indian mutual funds, users are adopting a disciplined approach. There has been a sharp rise in Recurring Investments (SIPs) in US stocks, meaning people are investing small amounts every month rather than trying to “time the market.”
What Are Indians Buying?
The data shows that Indian investors are smart and focused on future technology. They are not just gambling on random stocks; they are betting on sectors that are changing the world.
- Big Tech (The Magnificent Seven): The most popular stocks remain the tech giants—Nvidia, Microsoft, Apple, Tesla, Meta, Amazon, and Alphabet. Since these companies are global leaders in Artificial Intelligence (AI), Indians want a piece of the action.
- ETFs (Exchange Traded Funds): Instead of picking single risky stocks, many are buying ETFs like QQQ (Nasdaq 100) and VOO (S&P 500) to invest in the top 100 or 500 US companies at once.
- Thematic Investments: There is a growing interest in specific themes like Semiconductors, AI, and Clean Energy.
Why Are Small Town Investors Choosing US Stocks?
Financial experts believe three main reasons are driving this trend:
- Rupee Depreciation: The Indian Rupee has slowly lost value against the US Dollar over the years. By keeping money in dollars, investors protect their purchasing power.
- Global Brands: People use iPhones, watch Netflix, and search on Google every day. They understand these businesses and want to own a part of them.
- Diversification: Investors have realized that keeping all their eggs in one basket (only Indian stocks/FDs) is risky. Adding US stocks balances their portfolio.
The Budget 2026 Angle: What Investors Want
This report comes just days before the Union Budget 2026. With so many Indians investing abroad, there is high demand for tax relief. Currently, money sent abroad for investment is subject to Tax Collected at Source (TCS) if it crosses ₹7 lakh in a financial year.
Investors and platforms like Vested are hoping the government might simplify these rules or reduce the TCS burden to encourage more middle-class participation in global wealth creation. Additionally, professionals holding ESOPs (Employee Stock Options) in foreign companies are waiting for clearer taxation rules in the upcoming budget.
What Should You Do?
If you are thinking of joining this trend, remember that investing in foreign markets carries risks like currency fluctuation and market volatility. However, for long-term goals (like a child’s foreign education), having a portion of investments in dollars can be a smart strategy.
Frequently Asked Questions (FAQs)
Q1: Is it legal to invest in US stocks from India?
Yes, it is 100% legal. Under the Liberalised Remittance Scheme (LRS) of the RBI, an Indian resident can invest up to $250,000 (approx. ₹2 crore) per year in foreign assets.
Q2: Do I need a lot of money to start?
No. Platforms like Vested allow “fractional investing.” This means you can buy a small piece of a costly share (like buying $10 worth of an Amazon share) even if the full share price is much higher.
Q3: How are my US investments taxed in India?
If you hold foreign stocks for more than 24 months, gains are taxed as Long Term Capital Gains (LTCG) at 12.5% (as per recent rules). If sold before 24 months, the profit is added to your income and taxed as per your slab.
Q4: What is the TCS rule?
If you send more than ₹7 lakh abroad in a year for investment, the bank deducts 20% TCS. However, this is not an extra cost; you can claim it back as a refund when you file your Income Tax Return (ITR).
Q5: Are my US stocks safe?
Yes, US brokerage accounts are usually insured by the SIPC (Securities Investor Protection Corporation) up to $500,000 in case the broker shuts down.