Investing in US Stocks in 2026: Benefits, Risks, and How to Invest

Summary: 

• US stocks may allow Indian investors to access opportunities not available in the domestic market. 

• Investing in US stocks may reduce concentration risk as your money is spread across different economies and market conditions. 

• However, currency movements and short-term market fluctuations may reduce your returns. 

• You can invest in US stocks through the airpay money app through “US Stacks” and international mutual funds. 

As per a report from RBC Wealth Management (dated January 8, 2026), the U.S. stock market has now delivered double-digit returns, three years in a row. Since the bull market started in October 2022, the S&P 500 index has gained a total of 100.6% by the end of 2025.  

Impressed? 

Want to diversify your portfolio by investing in US stocks? Before committing funds, read this article to first learn the various benefits and risks involved. Next, you will learn how to invest in US stocks using the airpay money app (directly through “stacks” and indirectly via international mutual funds). 

Why Indian Investors May Invest in US Stocks in 2026? 

The US stock market includes some of the world’s biggest and most influential companies, such as Apple, Alphabet, Meta, and Microsoft. These are profitable multi-national corporations (MNCs) that: 

• Operate across countries 

• Earn revenue from multiple regions, and 

• Lead innovation in areas like technology and artificial intelligence (AI) 

By investing in such companies, Indian investors get exposure to “global growth trends” that may not be present in India. Additionally, some more advantages you may realise are: 

1. Diversification of Portfolio 

Investing in US stocks spreads your investments across different economies. If Indian markets face pressure, US markets may perform differently due to distinct economic conditions. Such a balance may reduce concentration risk. 

2. Opportunity to Earn High Returns 

As per a study from officialdata.org, the S&P 500 has delivered an average annual return of about 9.60% since 1900. Many companies listed in the U.S. market operate at a “global scale” and generate revenue from multiple countries.  

But what are some historical returns? 

For more clarity, let’s check out the returns generated by some popular US stocks in the last 5 and 10 years (Source: FinanceCharts): 

What are The Risks Associated with Investing in US Stocks? 

One of the biggest risks is related to “currency movements”. Even if your investments in US stocks perform well, a fall in the US Dollar (USD) against the Indian Rupee (INR) can reduce your final returns when you convert the money back. On the other hand, a stronger USD can increase returns.  

As a result, the profit you make depends not only on stock performance but also on currency movement. Besides, some more risks you must be aware of are: 

1. Rules and Taxes Can Change 

As a foreign investor in the US stock market, you must follow the rules set by US regulators, like the Securities and Exchange Commission (SEC) and tax authorities like the Internal Revenue Service (IRS).  

Changes in tax rates, reporting requirements, or compliance norms directly affect foreign investors and can influence your returns.  

2. Be Ready for Short-Term Price Swings 

Just like Indian stocks, the US stock prices can also fluctuate due to several factors such as: 

• Interest rate changes 

• Company performance 

• Global events (say the US-Iran war), or  

• Political developments 

In a recessionary market, even strong companies can see temporary declines. Thus, investors must be prepared for such short-term fluctuations and invest only as per their risk appetite. 

How to Invest in US Stocks in 2026? 

You can invest in US stocks through the airpay money app. We are a 360-degree financial wellness platform trusted by 1,00,000+ users. For Indian investors, airpay money offers two routes to get started:  

1. You can either invest through “Stacks,” which are pre-configured baskets of US stocks and ETFs or 

2. Choose “International Mutual Funds,” which provide exposure to global markets  

Let’s understand both these options in detail: 

I) Invest in US Stocks Through Stacks  

US Stacks are ready-made baskets of US stocks + ETFs available on the airpay money app. Instead of selecting individual stocks, you invest in a group of companies built around a specific idea or theme, such as technology or banking. 

These baskets are designed by financial experts based on different investment goals and risk levels.  

Step-by-Step Investment Process 

• Download the airpay money mobile app. 

• Tap on the “Products” tab and navigate to the “US Stocks” option (available under the “Investment” group). 

• Click on “Sign up for free”. 

• Start the process of opening a brokerage account in partnership with Stockal*. 

• Enter basic details and complete the KYC process.  

• Transfer funds from your bank account to the brokerage account. 

• Once funds are available, select and invest in a US Stack. 

*Stockal is a neo-brokerage platform that allows Indian investors to invest in foreign markets like the U.S. from India. 

II) Invest in US Stocks Through International Mutual Funds 

Alternatively, you can invest indirectly in US stocks through international mutual funds (or global funds). There are multiple such schemes available for purchase on the airpay money app: 

In all the above plans, you can start a monthly SIP (Systematic Investment Plan). 

Want to estimate your corpus?

 Use our free SIP calculator today to estimate your maturity amount. Additionally, use our other utilities, like Crorepati calculator, Retirement calculator, and more, to further improve your financial planning.