For Indian professionals working at large US companies like Microsoft, Google, Meta, Netflix, or Adobe, RSUs have become a major part of total compensation.
Yet, few realize that these RSUs also carry serious financial and compliance risks if left unmanaged after vesting.
- Estate tax risk: U.S. assets above $60,000 can attract up to 40% estate tax for non-residents, which can significantly reduce what your family inherits if something were to happen.
- Concentration risk: When more than 20% of your net worth is tied to your employer’s stock, both your income and your long-term wealth depend on the same company’s performance.
- Liquidity and compliance risk: Most RSUs are held in U.S. brokers that do not directly support transfers to India. Selling is easy, but remitting funds under FEMA or reallocating into compliant, global structures is much harder. This creates a liquidity trap where your wealth looks large on paper but remains difficult to move or protect effectively.
These risks make RSUs a separate category of wealth that need active management and diversification, not just passive holding.
That is where platforms like Vested and Paasa come in.
Both allow Indian professionals to access global investments, but their handling of RSU flows, FEMA compliance, and global reinvestment strategies is completely different.
This comparison breaks that down so you can decide which platform truly protects your RSU wealth.
Table of Contents
- Platform Overview
- How to protect from US estate tax?
- What are UCITS?
- RSUs vs US ETFs vs UCITS
- Platform Capabilities (Vested vs Paasa)
- Investor fit
- Conclusion
Platform Overview
Vested is a US focused investing platform that allows Indians to buy US stocks, ETFs, and a few alternative products like solar projects. It’s designed primarily for small to mid-ticket retail investors who want easy access to US markets but it limits diversification and leaves investors exposed to estate-tax and concentration risks once holdings grow in size.
Paasa, in contrast, is built for senior professionals and HNIs with significant RSU or global wealth. It lets them diversify across markets, invest in UCITS ETFs and global bonds, manage portfolios in multiple currencies, and reduce U.S. estate-tax exposure through globally domiciled, tax-efficient instruments.
| Vested | Paasa | |
|---|---|---|
| Core Purpose | Retail platform for Indians to invest in U.S. stocks and ETFs | Global investing platform for Indians to diversify RSU wealth globally and minimize U.S. estate-tax exposure |
| Protection from U.S. Estate Tax | ❌ (assets remain under U.S. jurisdiction) | ✅ (minimized through UCITS structures) |
| Diversification Scope | Limited to US markets and US-listed ETFs | Access to multiple markets and asset classes beyond the US (UCITS ETFs, bonds, global equities) |
| Brokerage Infrastructure | DriveWealth (U.S.) | Interactive Brokers (Global, institutional-grade) |
| Custody Jurisdiction | U.S. only | Global (Ireland, Luxembourg, Singapore, U.S.) |
| Account Type | US brokerage account | Global multi-market brokerage |
| Base Currency | USD | Multi-currency (USD, EUR, INR view) |
| FEMA & LRS Support | User-managed | Automated and compliant under LRS with correct purpose codes |
| Tax Reporting (India) | Generic US statement, Indian filing left to user | CA-ready tax reports aligned with Indian formats (Schedule FA, FSI, Form 67) |
| Dividend Withholding | ~25% on U.S.-listed ETFs | ~15% via UCITS ETFs domiciled in Europe |
| Support Model | Ticket-based, in-app support | Dedicated relationship and compliance support |
| SIPC Insurance | ✅ | ✅ |
How to Protect from US Estate Tax?
Vested operate entirely within U.S. jurisdiction, so every share or ETF you buy there remains a U.S. situs asset, fully exposed to estate tax. That risk compounds when your RSUs, post-sale, are also reinvested in U.S. securities.
Paasa is built differently. It allows your proceeds to be reallocated into UCITS ETFs.
What are UCITS?
UCITS (Undertakings for Collective Investment in Transferable Securities) are European domiciled funds regulated in markets like Ireland and Luxembourg. UCITS funds are globally trusted because they follow strict regulations on diversification, risk management, and investor protection.
For Indian professionals managing RSU or global equity, accumulating UCITS ETFs come with four major advantages:
- Estate tax protection Because UCITS are European-domiciled, they do not fall under US estate tax rules. This means Indian professionals with large RSU or US equity exposure can avoid the 40% tax hit that applies to US-domiciled assets above $60,000.
- Diversification across markets A single UCITS ETF can hold hundreds of global companies. For example, an S&P 500 UCITS ETF gives you the same US market exposure as its American counterpart, but with the added protection of European domicile. There are also UCITS products covering global equities, Europe, emerging markets, bonds, and thematic strategies.
- Efficient reinvestment structures Many UCITS ETFs are “accumulating” funds. Instead of paying out dividends that create additional paperwork and withholding tax issues, dividends are reinvested automatically, making them more tax-efficient for long-term compounding.
- Global standard, local compliance UCITS have become the de facto standard for cross-border investing. Large institutions, pension funds, and family offices across Asia and the Middle East use UCITS for global exposure. For Indian investors, they fit well into FEMA and LRS frameworks, making them easier to manage from a compliance perspective.
This is why UCITS aren’t just useful for de-risking RSUs.
They’re also a smarter vehicle for any Indian planning global portfolios. Whether you want exposure to US markets, Europe, or global equities, accumulating UCITS are often more tax-efficient and protective than investing directly in US stocks or ETFs.
We’ve covered this in depth in our guide: Why Indian Investors Should Choose Accumulating UCITS Over US ETFs, including how UCITS provide US market exposure, how they’re taxed in India, and which UCITS ETFs are most popular among Indian investors.
RSUs vs US ETFs vs UCITS
To see why UCITS are a smarter destination for RSU wealth, here’s how they compare with holding employer stock or shifting into US ETFs.
| RSUs (Employer Stock) | US ETFs | UCITS ETFs (Ireland/Luxembourg) | |
|---|---|---|---|
| Estate Tax | Subject to up to 40% above $60K (since US-listed) | Subject to up to 40% above $60K (since US-listed) | No US estate tax exposure |
| Diversification | None, tied to one company | Broader than RSUs, but mostly US only | Global: US, Europe, Emerging Markets, Bonds, Thematic |
| Volatility | Very high, tied to employer’s fortunes (job + wealth risk) | Lower than single stock but still US-centric | Balanced, cross-market and sector diversification |
| Dividends | Not relevant (shares vest, then held/sold) | Distributed; subject to US withholding tax (25%) | Can be “accumulating” dividends reinvested, more tax-efficient |
| Compliance for Indians | Needs disclosure in Schedule FA; taxed at vest + sale | Needs disclosure; complex with US withholding | FEMA and LRS friendly; simpler for cross-border investors |
| Suitability for Indians | Creates wealth but concentrated + estate tax risk | Better diversification but still estate tax risk | Best mix: estate tax shield, global reach, compliant |
Please note:
- For Indian investors, dividends from US ETFs are subject to withholding tax of 25%, creating a drag on long-term returns.
- UCITS “accumulating” funds reinvest dividends automatically, avoiding this leakage and compounding more efficiently.
We’ve explained these structural differences in detail, including how dividend treatment, taxation, and domicile rules impact your portfolio, in our guide on why UCITS are more efficient than US ETFs for Indian investors.
Platform Capabilities
A side-by-side view of what each platform enables once your RSUs have vested.
| Vested | Paasa | ||
|---|---|---|---|
| Direct trading | ✅ | ✅ | |
| Unified view across India + global | ❌ | ✅ | |
| Real-time execution | ✅ | ✅ | |
| Product Universe | US Stocks & ETFs | ✅ | ✅ |
| Other markets (China, UK, Europe, etc) | ❌ | ✅ | |
| Managed Portfolios | ✅ | ✅ | |
| UCITS portfolios | ❌ | ✅ | |
| AIFs | ❌ | ❌ | |
| Fractional Shares | ✅ | ✅ | |
| Auto-rebalanced UCITS portfolios | ❌ | ✅ | |
| Interest on uninvested cash | ❌ | ✅ | |
| Withdraw money to US bank account | ✅ | ✅ | |
| Support for multi-currency holding | ❌ | ✅ |
Investor fit
| Vested | Paasa | |
|---|---|---|
| Retail investors exploring global markets | ✅ Simple access to U.S. stocks and ETFs | ⚪ Over-optimized for small ticket sizes |
| Mid-level professionals with limited RSUs | ✅ Convenient for selling and reinvesting within the U.S. market | ✅ Better if you want to begin diversifying beyond the U.S. |
| Senior professionals with large RSU holdings | ❌ Limited diversification and exposed to estate tax | ✅ Designed specifically for RSU diversification and global allocation |
| HNIs and family offices | ❌ Not suited for complex portfolios or compliance tracking | ✅ Global, compliant structure that scales with wealth |
FAQs
What is the main difference between Vested and Paasa for RSU holders? Vested is a US focused investing platform designed for retail investors who want to buy US stocks and ETFs. Paasa, on the other hand, is built for Indian professionals with RSUs and global portfolios. It helps convert US held RSUs into globally diversified, FEMA-compliant, and estate-tax-protected portfolios.
Why do RSUs create estate-tax risk for Indian investors? US based assets such as company stock and US-listed ETFs are considered U.S. situs assets. For non-residents, these can attract up to 40% estate tax on holdings above $60,000 if left in U.S. custody. That’s why diversifying RSUs into UCITS funds through Paasa helps reduce this risk.
How does Paasa handle RSU transfers differently? Paasa supports guided inward transfers from major RSU brokers such as Fidelity, Morgan Stanley, and E*TRADE. Once proceeds are transferred, they can be reinvested into global UCITS ETFs and bonds under FEMA-compliant structures.
What are UCITS ETFs, and why are they better for Indians than U.S. ETFs? UCITS are European-domiciled funds that track global indices like the S&P 500 or NASDAQ 100. Unlike U.S. ETFs, they do not attract U.S. estate tax and often have lower dividend withholding rates, making them more tax-efficient for Indian investors.
What kind of investor should use Paasa instead of Vested? Paasa is ideal for mid to senior professionals, HNIs, and family offices managing large RSU or global portfolios. Vested suits smaller ticket investors who only want simple access to U.S. markets without complex compliance needs.
Are UCITS funds legal for Indian investors under LRS? Yes. UCITS funds are fully accessible under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS). Paasa ensures every investment and transfer is made within FEMA and RBI compliance limits.
Conclusion
Both Vested and Paasa open the door to global investing, but they serve very different needs.
Vested is best suited for retail investors looking for a simple way to invest in U.S. stocks and ETFs. It’s accessible, easy to use, and ideal for smaller ticket sizes where convenience matters more than structure.
Paasa, on the other hand, is built for Indian professionals with meaningful RSU wealth or international exposure. It goes beyond market access to focus on protection from U.S. estate tax, concentration risk, and compliance blind spots. By enabling investments into UCITS ETFs, global bonds, and multi-market portfolios, Paasa helps convert concentrated RSUs into a globally diversified, regulation-ready wealth plan.
Disclaimer
The information in this blog is provided for educational purposes only and should not be considered investment, legal, or tax advice. Regulations related to FEMA, LRS, and U.S. estate tax are subject to change, and their applicability can vary by individual circumstances. Investors are advised to consult their financial or tax advisor before making any investment or remittance decisions. Paasa does not provide tax filing or legal advisory services.
