What happened
Indian platforms now let investors buy fractions of US stocks through IFSC-based routes, with purchases counted under the RBI's Liberalised Remittance Scheme (LRS). Investors can start with small amounts, such as a few dollars, through these platforms.
Why this matters
Buying US stocks gives you dollar exposure and access to companies not listed in India. But it comes with three costs: the LRS annual limit of $250,000 per individual, taxation of gains under Indian rules, and the risk that the rupee strengthens and reduces your rupee returns. Fractional buying makes it easy to start but also easy to overlook these costs.
Action plan
Check how much you have already remitted under LRS this financial year.
Confirm the tax treatment of gains on foreign stocks held in your portfolio, and keep records of each transaction.
Limit foreign equity to a sensible share of your portfolio, usually a minority, and rebalance once a year.
Compare the total cost, including forex markup and platform fees, with buying a US-listed ETF through a domestic route.
Bottom line
Fractional US investing is an easy door, but the LRS limit, tax rules and currency swing still apply. Treat foreign stocks as a deliberate allocation, not a casual purchase.