Overseas equities or crypto: Where are Indian investors putting their money in 2026?

Indian investors are increasingly looking beyond domestic markets, with overseas equities and crypto emerging as key avenues for diversifying their portfolios and gaining exposure to global and alternative assets.

Recent data on outward remittances under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), along with crypto activity data, shows rising participation across both channels.

Vikaas M Sachdeva, CEO, BitDelta India, said the more interesting trend is not a shift from one asset class to another, but the willingness of Indian investors to look beyond a single market.

LRS flows show rising appetite for overseas assets

Outward remittances under LRS rose to $2.39 billion in May 2026. Within this, remittances for equity and debt investments more than doubled year-on-year to $363.6 million. For April-May together, the figure was up nearly 96% year-on-year to $603.3 million.

Sachdeva said the LRS data provides an indication of the growing amount of capital moving through overseas investment channels.

For Indian investors, overseas equities can provide geographical diversification and access to sectors that have limited representation in Indian markets. However, overseas investing also brings additional considerations, including currency movements, market volatility and applicable tax and regulatory requirements.

Crypto activity remains substantial

Crypto provides another indication of the continued appetite for alternative assets among Indian participants.

According to TRM Labs data cited by Sachdeva, India’s retail crypto transaction volume was approximately $46 billion in Q1 2026.

“This was particularly notable in a quarter when global retail crypto volumes declined by 11%. Despite the regulatory and tax environment in India, activity in the market has remained substantial,” he added.

Overseas equities vs crypto: Are investors choosing one over other?

“It would be a stretch to read these numbers as investors choosing one asset class over another,” Sachdeva noted.

“The data does not tell us how an individual investor is allocating their money, why they have made a particular allocation, or whether one asset class is being substituted for another,” he added.

But this distinction is important because the two datasets measure different aspects of investor activity. LRS figures capture aggregate outward remittances for permitted overseas investments, including equity and debt, while crypto transaction data reflects activity in the digital-asset market.

What does this mean for investors?

According to Sachdeva, the broader takeaway is that Indian participation is growing across different investment and digital-asset channels.

“What it does show is that Indian participation across different investment and digital-asset channels is growing. That, in itself, is an interesting development,” he said.

For investors, the data provides an indication of where participation is increasing. Sachdeva said decisions around US equities, virtual digital assets or any other asset class should depend on an individual’s circumstances, investment objectives and risk appetite.

He also stressed that “participation should take place through transparent, accountable and compliant systems—whether through permitted LRS channels for overseas investments or through FIU-registered reporting entities for virtual digital assets in India.”