From Dalal Street to Wall Street: How Indian Retail Investors Are Broadening Their Horizons

India’s retail investors have turned into admirers of equities in the post-COVID era, but the past few years have seen a quiet shift in where they’re putting their money. Increasingly, the gaze is gradually expanding beyond Dalal Street to Wall Street and it’s not just the ultra-wealthy taking the leap. More Indians are now buying shares in Apple, Tesla, Microsoft, and a host of other global names they once only read about.

The numbers tell the story. According to Reserve Bank of India (RBI) data, Indians invested $1.51 billion in foreign equity and debt in FY23–24 under the Liberalised Remittance Scheme (LRS), up nearly 20% from the previous year’s $1.25 billion. Go back a decade, and the figure was barely $170 million, just a missable tip in the nation’s outward remittances. Today, foreign stocks account for roughly 5% of LRS outflows, and the proportion is growing.

Fintech platforms, which have made opening an overseas brokerage account as easy as ordering dinner, are a large part of the story. Vested Finance, for instance, over the last three years, saw the number of brokerage accounts on its platform double from 1.8 lakh to 3.6 lakh. Even during market downturns, such as in 2022, when US equities had a rough ride, Indian participation continued to climb. Another major lure for Indian investors is the sheer global presence of US tech giants, an aspect that shields their risk of geographical concentration.

“We are seeing consistent interest in US equities, not just during bull runs but even when the US market is under pressure. That’s the biggest sign that Indian investors now see US stocks as part of their core, long-term portfolio allocation,” said Viram Shah, CEO and Co-founder of Vested Finance.

Why this sudden interest?

Part of the answer lies in demographics. India’s investing class is getting younger, more digitally fluent, and more risk friendly about opportunities beyond its borders. Many are already customers of the companies they’re investing in – they use iPhones, shop on Amazon, and follow Tesla’s announcement. For them, owning a piece of these brands is both a financial move and a way of participating in global trends.

 “A decade ago, investing overseas was niche, expensive, and cumbersome. Today, the awareness of dollar-denominated assets and the desire to own brands people use daily has grown exponentially,” Shah said.

Market performance has played its role too. The S&P 500 surged 17% in the past year, with US technology giants delivering outsized gains. Some, like Nvidia, have posted eye-watering multi-year returns that are hard to ignore for any investor scanning the globe for growth. Then there’s the currency factor. The rupee has depreciated steadily against the US dollar, averaging 3-4% a year, meaning that holding dollar-denominated assets not only offers diversification but also serves as a hedge against currency risk.

There’s also a growing recognition that India’s equity market represents just 3% of global market capitalisation. For investors seeking genuine diversification, that means looking abroad.

Millennials and Gen Z investors, particularly those in metro and Tier-I cities, led the boom and now Tier-II and Tier-III are following on. They cite diversification, currency hedging, and exposure to high-growth tech stocks as key motivations. Thematic ETFs tracking clean energy, AI, and semiconductor sectors have also seen a sharp rise in adoption, aligning with a preference for technologies for the future.

“Three years ago, most of our sign-ups were from metros. Now, Tier II and Tier III cities contribute meaningfully to new accounts. That’s a big change in the profile of the Indian overseas investor,” Shah stated.

The regulatory backdrop

The RBI’s LRS, which allows individuals to remit up to $250,000 abroad each year, is the foundation of retail overseas investing. Tax changes have also helped. In the 2024–25 Budget, the government reduced the long-term capital gains tax on foreign equities from 20% (with indexation) to 12.5%, and cut the qualifying holding period from 36 months to 24 months. Even though that doesn’t match the 12-month rule for domestic stocks, but it narrows the gap.

Meanwhile, newer initiatives such as NSE IFSC in GIFT City allow Indians to buy US stocks through depository receipts in rupee terms, offering a regulated domestic gateway to global markets. Volumes there are still modest, but the option reflects a policy environment that is broadly open to cross-border investing.

The platforms changing the game

For most investors, the real enablers have been technology platforms. Vested, INDmoney, Stockal, and Winvesta have brought features like fractional share investing, low-cost remittances, and digital KYC to the fore. Buying $50 worth of Amazon stock is now a two-minute task, not a bureaucratic process involving phone calls to a bank branch.

Traditional brokerages, too, have joined the fray, often in partnership with international brokers. While they may not match the sleekness of fintech apps, their integration with existing bank and demat accounts appeals to clients who prefer familiar institutions.

A shift that’s here to stay

The surge in Indian investment abroad isn’t a one-off pandemic-era blip. It’s the result of structural factors including rising incomes, wider financial literacy, easier access, and the desire to participate in global growth stories. Even with regulatory oversight, the pathways are open and improving.

For a long time, Indian investors measured their financial world in terms of the Sensex and Nifty. Now, the Nasdaq and S&P 500 are quietly joining the conversation.

Shah believes the trend has legs. “Indian investors are now thinking globally, not just locally. US markets offer access to innovation and stability that complement India’s growth story,” he said.

As more Indians balance local growth with global reach, the country’s retail investing map is getting a lot bigger and a lot more interesting.