Plan your investment
What Our Plans Cover
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Purchase of listed overseas shares...
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Remittance under the Liberalised R...
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Dividends from overseas holdings
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Fractional share purchase on many...
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Holding in an overseas brokerage a...
Who Can Consider This Plan?
- Indian resident individual, HUF, trust or company
- NRIs, through a portfolio investment scheme account
- PAN and completed KYC
- A demat account with a registered depository participant
- A trading account with a registered broker
What May Not Be Covered?
- Remittance beyond the annual LRS limit per person
- Exemption from disclosure of foreign assets in your Indian return
- Any protection against currency movement
- Automatic treaty relief on foreign dividend tax, which needs claiming
- Any guarantee of return
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Indian residents can invest directly in overseas shares and exchange-traded funds under the Liberalised Remittance Scheme, which permits remittance up to a specified annual limit per person for permitted purposes including investment.
The attraction is direct access to companies and sectors with no meaningful Indian equivalent, and the ability to hold specific businesses rather than a fund's selection of them.
The complications are real. Remittances attract tax collected at source above a threshold. Foreign holdings must be disclosed in your Indian income tax return, and non-disclosure carries serious consequences. Dividends may be taxed in the source country and again in India, with treaty relief available but requiring documentation. And currency movement affects your rupee return independently of how the shares perform.
Who should consider it
Investors with an established domestic portfolio adding direct international exposure. Investors wanting specific overseas companies rather than fund exposure. Anyone comfortable with the disclosure and tax administration involved.
Investors who want international exposure without the administration should use an international mutual fund instead, which handles all of it internally.
Benefits
- Direct ownership of specific overseas companies
- Access to sectors with no meaningful Indian equivalent
- Fractional investing available with many platforms
- Currency diversification alongside geographic diversification
- Exchange-traded funds provide broad market exposure cheaply
- A hedge against future foreign currency expenses
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- Purchase of listed overseas shares and ETFs
- Remittance under the Liberalised Remittance Scheme
- Dividends from overseas holdings
- Fractional share purchase on many platforms
- Holding in an overseas brokerage account
Not included
- Remittance beyond the annual LRS limit per person
- Exemption from disclosure of foreign assets in your Indian return
- Any protection against currency movement
- Automatic treaty relief on foreign dividend tax, which needs claiming
- Any guarantee of return
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We establish whether direct equity suits you at all For many investors a diversified fund does the same job with less to go wrong. That conversation comes before anything else.
- 2 Allocation set before any stock is discussed How much of your portfolio belongs in direct equity, and what stays in funds and fixed income. Position sizing prevents most permanent damage.
- 3 Demat and trading account set up properly KYC, nomination and the mandates. Done once, correctly, so nothing stalls when you want to transact.
- 4 Research shared, decisions left with you We provide analysis and context. We do not provide tips, and we will not tell you a stock will go up.
- 5 Reviewed against the thesis, not the price The question at review is whether the reason you bought still holds — not whether the price has moved since.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Disclose foreign holdings in your Indian tax return. Non-disclosure of foreign assets carries serious consequences under Indian law, and this is not an administrative technicality.
- Tax collected at source on remittances above the threshold is creditable against your tax liability, but it is a cash-flow cost in the meantime.
- Currency moves independently of the shares. A holding can rise in dollar terms and disappoint in rupee terms if the rupee strengthens.
- Dividends are usually taxed at source abroad. Treaty relief may reduce the Indian liability but requires the right documentation, obtained at the time.
- If the administration is unattractive, an international mutual fund gives similar exposure with all of this handled internally.
Documents required
- PAN card, mandatory for all securities transactions
- Aadhaar or other identity proof
- Address proof
- Bank account proof — cancelled cheque or statement
- Income proof, for derivatives segment activation
- Recent passport-size photograph
- Signature specimen and in-person verification
Frequently Asked Questions
How much can I invest abroad?
Up to the annual Liberalised Remittance Scheme limit per person per financial year, which covers investment along with other permitted purposes. A family can use each member's individual limit, which is how larger allocations are typically structured.
Do I have to declare foreign shares in my tax return?
Yes, and this matters. Foreign assets must be reported in your Indian income tax return, and non-disclosure carries serious consequences under Indian law. It is not an optional administrative step.
How are dividends taxed?
Usually withheld at source in the country of the company, and then assessed in India with treaty relief potentially available. Claiming that relief requires the correct documentation obtained at the time, so keep the withholding certificates.
Is this better than an international mutual fund?
It gives you specific companies rather than a fund's selection, and it comes with remittance limits, TCS, foreign asset disclosure and dividend tax administration. If you want the exposure without the administration, the fund route handles all of it internally.
What about currency?
It affects your rupee return independently of how the shares perform. A holding can rise in dollar terms and disappoint in rupee terms if the rupee strengthens, and the reverse also applies. Market risk and currency risk both apply.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.