Article
Jan 1, 2026
US - India: How NRIs Should Think About Asset Allocation (Not Stock Picking)
Introduction
For many NRIs, the hardest investing question isn’t which stock to buy —
it’s where their long-term wealth should live.
US markets offer scale, liquidity, and global leaders.
Indian markets offer growth, familiarity, and alignment with life goals.
The right answer isn’t choosing one over the other.
It’s building an allocation that matches your life stage, tax reality, and future plans.
This piece lays out a framework NRIs can use to decide US vs India allocation, without chasing headlines or short-term performance.
First Principles: Allocation Before Assets
Before debating US vs India, start with this rule:
Asset allocation drives long-term outcomes far more than stock selection.
For NRIs, allocation must consider:
Where you live today
Where you plan to live tomorrow
Where you will spend your money
How your assets are taxed and transferred
Ignoring these leads to portfolios that look good on paper but fail in real life.
What the US Market Does Exceptionally Well
The US market is unmatched in certain areas.
Strengths of US Allocation
Global technology and innovation leaders
Deep, liquid capital markets
Strong corporate governance
Dollar-denominated assets (currency diversification)
Efficient buy-and-hold tax treatment for NRAs
For many NRIs, US exposure is:
A hedge against India-specific risk
A way to participate in global growth
A natural outcome of earning in USD
Where US Allocation Starts to Friction
US investing is not without trade-offs, especially as wealth grows.
Structural Challenges
US estate tax exposure above $60,000 for non-residents
Dividend withholding with ongoing compliance
Increasing reporting obligations in India after return
Banking and FX costs that compound quietly
Emotional distance from assets that fund real-world goals
US assets work best when:
Your life, liabilities, and spending are US-linked
What Indian Markets Offer NRIs
India plays a very different role in an NRI portfolio.
Strengths of India Allocation
High long-term growth potential
Familiar regulatory and legal environment
No estate tax
Investments align with:
- Retirement in India
- Family support
- Property and lifestyle expenses
Simpler inheritance and transmission structures
India exposure is not about patriotism — it is about life-goal alignment.
The Hidden Advantage of India Allocation
For NRIs, Indian investments often provide:
Better post-tax visibility
Lower long-term friction
Easier nominee / survivor structures
Faster access in emergencies
Fewer cross-border dependencies
These factors rarely show up in CAGR charts — but matter enormously over decades
A Practical Allocation Framework for NRIs
Instead of asking “US or India?”, ask:
Where Will I Spend This Money?
US expenses → US allocation
India expenses → India allocation
What Is My Time Horizon?
Long, global growth → US tilt
Medium to long, life goals → India tilt
How Important Is Simplicity?
Higher complexity tolerance → US heavy
Preference for clarity → India heavy
What Happens If Something Happens to Me?
Estate tax, probate, access speed
Survivability matters more as wealth grows
Example Allocation Mindsets (Not Prescriptions)
Early-career NRI
Higher US exposure
Growth and USD accumulation focus
Mid-career NRI with family in India
Balanced allocation
India goals begin to dominate
Returning NRI
Gradual shift toward India
Reduce cross-border friction
Align assets with residence
There is no “correct” ratio — only contextually correct decisions.
Common Mistakes NRIs Make
Over-concentrating in one geography
Ignoring estate and succession risks
Optimizing for returns but not usability
Treating US and India portfolios in isolation
Delaying rebalancing until forced by regulation or life events
The Pivot Money Perspective
At Pivot Money, we believe global exposure is important, but alignment is essential.
We currently help NRIs invest in India:
Efficiently
Transparently
With long-term clarity
As cross-border wealth becomes deeper and more complex, our aim is to be a platform that:
Understands both US and India investing realities
Helps NRIs think in portfolios, not silos
Evolves alongside your life, not just your location
Final Thought
US vs India is not a market debate. It’s a life design question.
The best NRI portfolios are not the ones with the highest short-term returns — they’re the ones that still work 10, 20, and 30 years later.
If your life is evolving, your allocation should too.