Does it make sense to invest in US Tech funds from India despite the 20% TCS?

Published 3 October 2026

Anushka from Surat

I have my core portfolio in Indian index funds but I want to diversify globally.

I am looking at US tech funds (Nasdaq) but the 20% TCS and forex costs seem like a huge cost.

Is it still worth holding US assets for a 15yr holding period?

Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

Even after accounting for the 20% TCS and forex costs, the overall returns from US tech over a long period are vastly superior to Indian large-caps. To get higher returns, one may look at superior markets. The Nasdaq Composite has historically grown at 16% to 17% CAGR in US Rupee terms over 10yr and 15yr periods.

The reason for this outperformance is that US technology companies are growing dramatically faster than the broader market. Tech is the engine pulling the weight of the US economy. We are currently in a tech revolution driven by artificial intelligence.

Owning foundational, high-quality US tech companies is crucial for generating outsized returns. Furthermore, diversifying globally protects your portfolio. The US effectively exports its inflation to emerging economies like India.

As global inflation rises, emerging markets are often hit the hardest. Holding US assets and global tech ensures your wealth is insulated from localized economic shocks.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.

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