The barriers to global investing for retail investors have traditionally been formidable. High transaction costs, cumbersome paperwork, and opaque fee structures made international market access the exclusive domain of HNIs in India. Today, we stand at the cusp of a fundamental transformation driven by technology and changing regulatory landscapes.
Consider this: In January 2022, overseas remittances specifically for equity investments were just 4% of India’s total outbound capital flow. Over the last four years, we have witnessed a staggering 400% increase in investment-related remittances through the LRS (Liberalized Remittance Scheme), signaling a dramatic shift in ease of investor access. This isn’t merely a statistical anomaly—it also represents a structural change in how Indians allocate capital globally.
Traditional Barriers: High Costs and Complexity
The conventional pathway to global investing has been prohibitively expensive for the average Indian investor. Let me break down the economics:
Sometime back, traditional brokerages imposed transaction fees ranging from 1% to 2.5% per trade, immediately eroding potential returns. When you factor in currency conversion markups (typically 1-2% above interbank rates), fixed remittance fees, maintenance fees, and withdrawal charges, the cumulative impact on investment performance becomes significant.
Second, the remittance process itself was remarkably inefficient. Investors needed to physically visit their bank, complete multiple forms, secure authorizations, and often wait 3-4 business days for fund transfers to complete. This process not only consumed time but also introduced additional costs of ₹500- ₹1,500 per remittance.
Third, regulatory constraints placed on Indian mutual funds that invest internationally created market distortions. With SEBI’s $7 billion cap on overseas investments by mutual funds frequently reached, many international funds stopped accepting fresh investments, creating artificial demand-supply imbalances. This has led to situations where some international funds trade at premiums of 10-25% above their Net Asset Value—effectively forcing investors to start their investment journey at a significant disadvantage.
The Technology-Driven Disruption
The emergence of digital-first wealth platforms is fundamentally rewriting this narrative. By leveraging technology across the entire investment journey, these platforms are not only making it easy to invest in markets like the US, but are also eliminating traditional costs and passing the savings directly to investors.
Zero or Low Brokerage Models
Modern platforms have revolutionized the fee structure by either eliminating transaction costs entirely or reducing them to nominal levels (some offering as low as 0.05%). This shift from transaction-based revenue to alternative business models means that an investor buying $100 worth of Apple stock or a thematic ETF no longer sees their investment immediately devalued by excessive fees.
The mathematics of this transformation is compelling. An investor making 12 transactions annually of ₹10,000 each would save approximately ₹2,400- ₹3,000 in brokerage fees alone compared to traditional channels. Over a 10-year investment horizon, accounting for compound growth, this differential becomes substantial.
Efficient INR-USD Remittance Infrastructure
Perhaps the most significant innovation has been the streamlining of the cross-border remittance infrastructure. By integrating directly with banking APIs and creating digital workflows compliant with RBI guidelines, some platforms have reduced the remittance process from days to minutes, and done away with any kind of remittance or withdrawal fees.
The financial impact is equally impressive: negotiated FX rates have brought currency conversion markups down from 2% and above to under 1% in many cases. For perspective, on a ₹10 lakh investment, this represents savings of ₹10,000- ₹20,000 at the point of entry alone.
More importantly, this efficiency has democratized access. Platforms now support fractional investing with minimums as low as ₹1, removing the high entry barriers that previously excluded retail investors.
Alternative Revenue Streams
The business model innovation underlying new platforms is worth examining. Rather than relying on customer fees alone, new next-generation platforms are developing more differentiated revenue models:
- Premium analytic tools and data-driven insights: At Appreciate, we have developed proprietary AI/ML-based trading signal systems that analyze over 50 market indicators to provide high-confidence investment recommendations—a service that institutional investors subscribe to.
- B2B enterprise solutions: We’ve expanded beyond retail investing by leveraging our technology stack to provide white-labeled investment infrastructure to financial institutions, banks, and wealth advisors. This enables these entities to offer global investing capabilities to their clients without building the entire technology from scratch.
- API-based financial services: Our remittance and investment APIs are integrated by various partners across the fintech ecosystem, creating a network effect that reduces costs further as volume increases.
This realignment of incentives represents a fundamental shift from a transaction-oriented approach to relationship-oriented economics, where platform growth and profitability is tied more closely to user engagement and retention.
Beyond Cost: The Diversification Imperative
While the cost reduction narrative is compelling, it’s important to recognize that the value proposition extends far beyond mere savings. The strategic case for global diversification has never been stronger for Indian investors.
The rupee has steadily depreciated against the dollar—from ₹74.3 in January 2022 to ₹85.56 as of May 2025. This nearly 15% depreciation over three years (approximately 5% annually) effectively provides Indian investors with an additional return beyond the performance of the underlying assets themselves.
Furthermore, global markets offer exposure to sectors underrepresented in India. The AI revolution, biotechnology breakthroughs, semiconductor innovation, and other transformative trends are primarily accessible through developed markets. For Indian investors seeking balanced portfolio exposure to these growth engines, global allocation becomes not just desirable but necessary.
The Road Ahead: Emerging Opportunities
The next frontier for these platforms involves deeper integration with India’s digital financial infrastructure. The Open Network for Digital Commerce (ONDC) initiative promises to further reduce intermediation costs and expand access, particularly for first-time investors from smaller cities and towns.
At Appreciate, our early involvement as a key enabler within the ONDC ecosystem has demonstrated how digital public infrastructure can further amplify the democratization of financial services. By bringing mutual fund investments onto open networks, we’re seeing transaction costs reduce by as much as 30-50% compared to traditional distribution channels.
Additionally, innovative products like global thematic ETFs and index funds are becoming accessible at remarkably low expense ratios—often between 0.03% and 0.25%. This enables investors to gain diversified exposure to specific trends or sectors without the concentration risk of individual stocks.
As regulatory frameworks evolve and technology continues to advance, we can expect further compression in the cost of global investing.
The Democratization Dividend
The true significance of this transformation extends beyond individual investor benefits. As global investing becomes democratized, India’s capital markets develop greater resilience through diversification, and investors gain sophistication through exposure to different market dynamics.
For India’s growing investor base—now over 14 crore demat accounts—the ability to participate in global wealth creation represents not just an investment opportunity but also an educational one. By experiencing different market cycles, corporate governance models, and sectoral trends, Indian investors build a more nuanced understanding of capital allocation.
The future belongs to investors who can navigate both domestic and global opportunities with equal confidence. Technology-driven platforms are making that future accessible today, not just for the privileged few, but for India’s aspiring millions.
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