How to invest in US stocks from India and size the sleeve

Before you start: decide the size, not the stock

A sleeve is a slice of the portfolio with one job. Here the job is earning in a currency other than the rupee, through companies listed in the United States.

A portfolio held entirely in rupee assets earns nothing in another currency. A sleeve changes that, provided its size is written down before the next headline arrives.

The common mistake runs the other way. An investor sees a selloff or a rupee move, buys US stocks in a hurry, and ends up with a number nobody chose. A sleeve of 5, 10 or 15 percent was chosen. A sleeve of whatever got bought in the last panic was not.

How to invest in US stocks from India, step by step

Step 1: Write the sleeve as a percentage and a rupee figure

Take the whole portfolio, including mutual funds, direct equity, deposits and crypto. Pick a percentage, then multiply.

On a ₹1 crore portfolio, 10 percent is ₹10 lakh and 15 percent is ₹15 lakh. Keep both numbers on one page, because the rupee figure decides which routes and which tax treatment apply.

Step 2: Choose a route

There are four ways in, and each gives up something different.

The first is a direct account with an overseas broker, funded under the Liberalised Remittance Scheme. Kotak Mahindra Bank's page, read on 1 November 2026, describes the scheme this way. Resident individuals, minors included, may remit up to US$250,000 per financial year (April to March) for any permissible current or capital account transaction. A PAN is mandatory for every remittance. You hold US-listed shares in your own name abroad.

The second is an Indian platform that routes orders through the GIFT City International Financial Services Centre. Business Today reported on 21 October 2026 that one Indian broker had begun enabling US stocks and ETFs in beta this way, through India INX Global Access. Money sent for this purpose generally counts toward the same Liberalised Remittance Scheme ceiling and tax rules.

The third is tokenized US stocks on Qatobit. Qatobit's Quick Buy/Sell lets an investor buy and sell tokenized US stocks in rupees from one Qatobit balance. The live price and the exact fee show before one tap confirms. It is tokenized exposure to US equities, and the regulation of tokenized equity in India is still evolving.

The fourth is QSI GEQ8, Qatobit's index of 8 global companies. It holds global equities rather than crypto. Three of Qatobit's four indices hold crypto; GEQ8 is the one that does not.

Step 3: Count what the route costs before you commit

Costs differ by route, and a rupee figure beats an adjective.

For the direct route, the Business Today explainer says tax collected at source generally applies at 20 percent. It applies to the amount above ₹10 lakh in a financial year, for remittances other than specified education and medical purposes. Overseas investment generally falls in that group. Kotak's page cites the provision as section 394(1), Table Sr. No. 7 of the Income Tax Act 2025, earlier section 206C(1G) of the 1961 Act.

The tax collected at source is generally a credit rather than a final tax. Business Today notes it can be claimed against your income-tax liability when you file, and refunded if it exceeds that liability. The cash is still out of your hands from the day of remittance until the return is processed.

Add brokerage, foreign-exchange conversion costs and any regulatory fees, which the same article lists as further costs. It also says to retain remittance documents.

On Qatobit, a single tokenized stock bought through Quick Buy/Sell carries a 0.4 percent fee on the transaction amount. A QSI index carries 0.35 percent per rebalance and no annual management fee, with no exit load.

Step 4: Write the rebalance rule while you are calm

A sleeve drifts. If US stocks rise, the sleeve grows past its target. If they fall, it shrinks below.

Pick the rule now. Check the sleeve on a fixed day each quarter, or when it moves a set number of percentage points from target. Then trim or top up to the original percentage. The rule matters more than the exact number, because it removes the decision from the day the market is loudest.

A direct holding needs you to run that rule yourself. A QSI index rebalances inside the index every month, so the rule is built in.

What a sleeve looks like on a ₹1 crore portfolio

Take two investors with the same portfolio and different sleeves.

The first sets 10 percent. That is ₹1 crore × 0.10 = ₹10 lakh. If it is the only overseas remittance of the financial year, the whole ₹10 lakh sits at the threshold. Under the rule Business Today describes, there is no tax collected at source on it.

The second sets 15 percent. That is ₹15 lakh. The amount above the threshold is ₹15 lakh − ₹10 lakh = ₹5 lakh, and 20 percent of that is ₹1 lakh collected at source. The ₹1 lakh is recoverable as a credit, but it leaves the account on day one.

Both choices are defensible. The sleeve percentage sets the cash position at the start, and the route does not change it. The second investor could also stage the money across two financial years and stay under the threshold each time, if the plan allows it.

A monthly route works the same way. ₹25,000 a month for 12 months is ₹3 lakh a year, well inside the threshold, and it spreads the entry across twelve prices instead of one.

The sources above say the threshold is measured on the aggregate of qualifying remittances, not per platform. Any other overseas remittance in the same year counts toward it.

What happens after you buy

A US stock is priced in dollars, so the rupee value of the holding moves with the exchange rate as well as with the share price. That is the point of the sleeve. It is also why the position size should be one you can watch move without acting.

Keep the remittance record, the broker statement and the tax-collected-at-source entry together. For a direct holding, those three documents are what you or your accountant will ask for at filing time.

For a tokenized stock or a QSI index on Qatobit, the app shows the holding in your Qatobit balance. QSI indices report a monthly NAV, quarterly statements and annual tax documentation.

QSI GEQ8 sits outside SEBI regulation, so treat it as a different instrument from a SEBI-regulated mutual fund, and read its methodology before you invest.

How this fits the rest of your allocation

The sleeve is a case of the idea in what asset allocation is and what it decides before any pick. A sleeve that grows unchecked is the problem described in concentration risk, when a few holdings decide everything. The monthly rule inside an index is explained in what a crypto index is. The trim-and-top-up logic for any sleeve is in portfolio rebalancing when one holding falls 10 percent.

Where to go from here

Write the sleeve first, as a percentage and a rupee figure. Choose the route second, with the tax collected at source and the conversion cost in rupees next to it. Write the rebalance rule third. If you want the index route to the same companies, you can invest in QSI GEQ8, and the methodology page lists the 8 holdings and their weights.

Sources: Business Today, "Investing in US stocks from India: How the ₹10 lakh TCS threshold works", published 21 October 2026, read 1 November 2026. Kotak Mahindra Bank, "Send Money Abroad", read 1 November 2026.

Frequently asked questions

What is the limit for sending money abroad to buy US stocks?

A resident individual can remit up to US$250,000 per financial year, April to March, under the Reserve Bank of India's Liberalised Remittance Scheme, for permitted transactions including overseas investment. A PAN is mandatory. The limit is cumulative across all such remittances in the year.

How much tax is collected when I send money abroad to buy US stocks?

Tax collected at source generally applies at 20 percent on the amount above ₹10 lakh in a financial year for remittances other than specified education and medical purposes. On ₹12 lakh, that is 20 percent of ₹2 lakh, which is ₹40,000. It is generally a credit against your income-tax liability.

What is a sensible size for a US stock sleeve?

There is no single right number. Pick a percentage of the whole portfolio before the next headline, write the rupee figure next to it, and set a rule for trimming or topping up. A 10 percent sleeve on ₹1 crore is ₹10 lakh.

Can I buy US stocks in rupees on Qatobit?

Yes. Quick Buy/Sell lets an investor buy and sell tokenized US stocks in rupees from one Qatobit balance, with the live price and the exact fee shown before confirming. A single-asset buy or sell carries a 0.4 percent fee. Regulation of tokenized equity in India is still evolving.

What is QSI GEQ8 and what does it cost?

QSI GEQ8 is a Qatobit-designed index of 8 global companies across technology, digital finance and innovation, rebalanced monthly. It holds global equities, not crypto. The fee is 0.35 percent per rebalance with no annual management fee, no exit load, and a ₹2,000 minimum.

Crypto investments are subject to market risk. Not financial advice.