Global ETF vs Nifty

US ETF or Nifty SIP: what do you actually keep?

After currency, TCS, fees and tax

Ankur Warikoo keeps about 35% of his own investments in the US market and has made several videos on how Indians can invest abroad. Before you pick a side, this calculator runs the same monthly SIP through a Nifty 50 index fund and three US routes, then shows what each one leaves you with after conversion costs, expenses, TCS and tax.

Your SIP

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Return assumptions

Long run: Nifty 50 TRI since 1999, S&P 500 and the rupee over 20 years. Last 5 years: the same indices since late 2021. Equal footing: both markets earn about the same in rupees before costs, so only the costs and tax differ.
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Costs by route typical figures, edit to match your fund or platform
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Direct route default: about 75 paise over the interbank rate on ₹96 (0.8%) plus 0.25% brokerage. Funds that hold Irish-domiciled ETFs lose about 15% of dividends to tax inside the fund, and those holding US-domiciled ETFs about 30%. Bank remittances can cost much more than the direct default. Warikoo mentions his bank converting at ₹99 when the market rate was ₹96, which is over 3%.
What the market data says

S&P 500 vs Nifty 50: the answer changes with the window

Returns below are yearly averages with dividends reinvested. US figures in rupees are Monzy's calculation from the dollar return and the change in the rupee over the same period.

PeriodNifty 50 (₹)S&P 500 ($)S&P 500 (₹)
Last 1 year-7.1%rupee down 8.4%
Last 5 years6.4%13.9%about 19.9%
Last 10 yearsn/a15.5%about 19.8%
Last 20 yearsn/a11.2%about 15.3%
Since 199912.1%n/an/a

Nifty 50 TRI from the NSE factsheet as of 30 Sep 2026. S&P 500 total return as of 9 Oct 2026 (Chartrow, from SPY). Rupee at ₹96.13 per dollar on 12 Oct 2026, against about ₹46 in 2006, ₹67 in 2016 and ₹74 in 2021 (FRED).

16% vs 15.4%
Nifty 500 vs S&P 500 in rupees, 2014 to 2023, per a Motilal Oswal AMC study
3.8% a year
Average weakening of the rupee against the dollar over the last 20 years
Reading this neutrally. The last five years flatter the US: the S&P 500 compounded at about 14% in dollars while the rupee fell faster than its long-run pace, and the Nifty went through a weak patch. Pick 2014 to 2023 and Indian large and mid caps came out slightly ahead. Neither market wins every decade, and the currency adds a tailwind that is real on average but uneven year to year. That is the case for holding some of both, which is what diversification means.
Four ways to invest in the US from India
Route 1Indian mutual fund

An Indian fund of funds or index fund that invests in US stocks or ETFs. No LRS paperwork and no TCS, and you invest in rupees. The catch is availability: the industry can hold only $7 billion abroad in total, so these funds pause fresh money whenever the cap is close.

Route 2GIFT City fund

A fund set up in India's international finance centre in Gujarat, which runs in dollars under global rules. It still counts against your LRS limit and attracts TCS. Some schemes need $5,000 to start, with expense ratios around 0.4% for an S&P 500 fund.

Route 3Direct ETF through LRS

You send money abroad under the Liberalised Remittance Scheme, up to $250,000 a year, and buy US-listed ETFs through an app or broker. ETF fees can be as low as 0.03% to 0.07%, but you pay a currency spread on the way in and out, 25% US tax on dividends, and you must report holdings in Schedule FA.

Route 4Indian ETF tracking a US index

Listed on Indian exchanges and bought from your demat account. Like route 1, it sits under the industry cap, and when fresh units stop the ETF can trade above its real value. Check the premium before buying.

Why the number of currency hops matters. In the source video, Warikoo explains that every hop between your bank, a correspondent bank and the broker takes a cut. Platforms that execute trades themselves in GIFT City (the principal or GAP model) need fewer conversions than those that pass your money to a third-party broker. Ask any platform which model it uses and what spread it charges over the interbank rate.
More on this

Is the S&P 500 better than the Nifty 50 for Indian investors?

It depends on the period you look at. Over the five years to October 2026, the S&P 500 returned about 19.9% a year in rupees against 6.4% for the Nifty 50 TRI. Over 2014 to 2023, a Motilal Oswal AMC study found the Nifty 500 slightly ahead at 16% a year against 15.4% for the S&P 500, both in rupees. Since neither market wins every decade, many investors hold both. Ankur Warikoo, for example, keeps about 35% of his investments in the US.

How much TCS do I pay when I invest in US stocks from India?

TCS is 20% on the amount you send abroad for investment above ₹10 lakh in a financial year. The first ₹10 lakh carries no TCS, and the GIFT City route counts too because it still runs under LRS. TCS is not an extra tax. It is credited against your income tax when you file, but the money stays blocked until then.

How are US ETFs and international funds taxed in India?

Gains on US stocks and ETFs held directly, and on Indian funds that invest abroad, are long-term after 24 months and taxed at 12.5% without indexation. Gains within 24 months are taxed at your slab rate. The ₹1.25 lakh yearly exemption applies only to Indian equity funds and shares, so the Nifty route gets it and the US routes do not. US dividends face 25% withholding, which you can claim as a foreign tax credit through Form 67.

Why do international mutual funds stop accepting SIPs?

Indian mutual funds together can invest only $7 billion abroad. When the industry nears that cap, fund houses pause fresh lumpsums and new SIPs in their international schemes. They reopen briefly when room frees up, as many did in March 2026. Check the scheme notice before you plan a SIP around one of these funds.

Does the falling rupee increase my returns from US investments?

Yes, on average. Over the last 20 years the rupee weakened about 3.8% a year against the dollar, and that adds to the dollar return of a US investment when you convert back. The effect is uneven. The rupee fell 8.4% in the year to October 2026, and in other years it has held steady or strengthened. The calculator shows the yearly rupee fall at which a US route breaks even with your Nifty SIP.

Is GIFT City better than the regular LRS route for US investing?

Both run under LRS, with the same $250,000 yearly limit and the same 20% TCS above ₹10 lakh. In GIFT City your money stays in a regulated Indian zone and is converted to dollars there, often in fewer hops, which can mean a smaller currency spread. Platforms that execute trades themselves (the principal or GAP model) need fewer middlemen than those that pass orders to a third-party broker. Compare the actual spread and fees of any platform you consider.

How does this global ETF vs Nifty calculator work?

It runs the same monthly SIP through four routes for the period you choose. Each US route converts every instalment at a rupee rate that weakens by your chosen percentage each year, grows at the US return minus expenses, and converts back at the end. It then deducts currency costs, dividend tax drag on directly held ETFs, exit tax of 12.5% plus cess, and one year of lost return on any TCS. The Nifty route grows at your Nifty return minus its expense ratio and gets the ₹1.25 lakh exemption once.

This is a comparison tool, not investment or tax advice. Past returns do not predict future ones, and the presets are historical averages, not forecasts. The model assumes one monthly SIP, a single redemption at the end, tax of 12.5% plus 4% cess on long-term gains, and a ₹1.25 lakh exemption on the Nifty route only once. It does not model surcharge, tracking error, US estate tax, or yearly tax-loss and gain harvesting. Costs vary by fund and platform; Monzy has no tie-up with any platform named or implied here. Confirm tax treatment with a chartered accountant before investing abroad.