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Indian investors looking to diversify beyond domestic markets now have another avenue to explore. Investment platform Groww has opened US stock investing to all its customers, completing a phased rollout that began around four weeks ago. The facility allows investors to buy and sell US-listed stocks and exchange-traded funds (ETFs) directly through the Groww app.

The offering provides access to international companies and investment themes that may not be readily represented in the Indian market. Here are some of the key features and considerations for investors exploring the option.

Access to global companies and ETFs

Groww provides access to more than 10,000 US-listed stocks and ETFs across sectors such as artificial intelligence, software-as-a-service (SaaS), semiconductors and space technology.

Investors can explore shares of globally recognised companies such as Apple, Microsoft, NVIDIA, Tesla, Alphabet, Amazon and Meta Platforms. The platform also offers ETFs tracking broader indices and specific sectors, including Vanguard S&P 500, Invesco Nasdaq 100, SPDR S&P 500 and VanEck Semiconductor.

Fractional investing lowers the entry barrier

The platform supports fractional investing, allowing customers to purchase a portion of an individual share rather than having to buy an entire share. This can make companies with relatively high share prices more accessible to investors looking to start with smaller amounts.

Investors can also explore market information, discover securities and monitor their US investments alongside their other holdings on Groww.

Account activation and onboarding

Customers can access the US Stocks section under 'Products and Tools' in the Groww app and initiate the account activation process. The onboarding involves submitting and verifying personal and financial information, including employment status, annual income bracket, liquid net worth and primary source of funds.

Once the required verification is completed, investors can proceed to fund their accounts and begin investing.

Funding the account and placing orders

Groww supports online funding through eligible bank accounts, including HDFC Bank, ICICI Bank, IDFC First Bank, Axis Bank and Kotak Mahindra Bank. Customers can select a linked bank account, enter the amount they wish to transfer and complete the applicable bank-authorised remittance and authentication process.

Depending on the bank, this may involve confirming account details, accepting relevant declarations and completing OTP verification. Certain banks also offer net banking and debit card authentication options.

Once the funds are credited to the US dollar balance, investors can select an eligible US stock or ETF and place a buy order through the app. Customers can also link multiple eligible bank accounts, subject to applicable verification requirements.

Regulatory requirements and investment risks

Groww's international investing service is offered through Groww IFSC Private Limited, which holds Global Access Provider and broker-dealer registrations under the International Financial Services Centres Authority (IFSCA).

For Indian residents, overseas investments are subject to applicable foreign exchange regulations, including the Reserve Bank of India's Liberalised Remittance Scheme (LRS). Investors should also account for currency conversion charges, taxation and other applicable transaction costs. Since investments are denominated in US dollars, movements in the rupee against the dollar can influence overall returns when funds are converted back into rupees.

International equities are also exposed to market volatility, company-specific developments and global economic conditions. Investors should understand these risks and the applicable regulatory requirements before committing funds.

Access to US-listed stocks and ETFs provides Indian investors with another avenue to explore international markets and diversify their portfolios. As with any investment, the choice of securities and the amount invested should be guided by individual financial goals, risk appetite and investment horizon.

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