Over the past few years, Indian professionals especially those at companies like Microsoft, Google, Amazon, Meta, Adobe, and Nvidia have become far more strategic about their RSUs. For many, these grants now represent ₹50 lakhs to a few crores of concentrated wealth, making them a central part of long-term financial planning.
As this exposure grows, so does the need for smarter diversification and protection, particularly from the 40% US estate-tax risk attached to company stock held abroad.
Many professionals have begun exploring platforms such as Zinc Money and Paasa that help manage RSU wealth globally while staying FEMA-compliant.
In recent months, many professionals who began their RSU journey elsewhere have chosen to continue it with Paasa, appreciating its focus on compliance clarity, access to UCITS ETFs that avoid the 40% U.S. estate-tax exposure, and portfolio-level guidance for global wealth management.
In this blog, we explore why Paasa has become the preferred platform for professionals who are serious about diversifying, growing, and protecting their RSU wealth globally.
Table of Content
- Three core risks of holding RSUs
- Why many RSU holders are moving to Paasa
- What Makes Paasa Different
- Managed Strategies
- How to move from Zinc Money to Paasa
Three core risks of holding RSUs
RSUs can create meaningful wealth, but they also come with structural risks that most investors overlook until it’s too late. Understanding these early is what separates a strong wealth plan from an exposed one.
1. Estate tax risk
US listed company shares held by non-residents fall under U.S. estate tax rules. If the total value of those shares exceeds $60,000, the estate could face a tax of up to 40% in the event of the holder’s death. This can significantly reduce what families ultimately inherit, even if the shares are long-term holdings and not actively traded.
2. Concentration risk
For most professionals, both their income and stock come from the same company. When that company’s share price falls, their salary, savings, and net worth are all affected together.
Holding too much in one stock can make your financial life depend on a single employer’s performance. Diversifying across sectors, geographies, and asset types helps reduce this dependency and smooth out your overall returns.
3. Liquidity and compliance risk
RSUs are usually held with international brokers such as Fidelity or Morgan Stanley. Selling the shares may be straightforward, but moving funds between accounts, or reinvesting them across global markets, often triggers FEMA, Form 67, and Schedule FA obligations. Without careful planning, this creates a liquidity trap where wealth looks large on paper but remains difficult to access or redeploy efficiently.
The smartest RSU investors treat equity like any other serious asset- diversified, compliant, and globally positioned.
Why many RSU holders are moving to Paasa
Paasa works with Indian HNIs, family offices, and institutional investors, bringing the same global access and compliance depth to professionals managing RSU wealth. It offers one of the widest UCITS ETF portfolios available to Indian investors, enabling diversification across equities, bonds, and thematic exposures in multiple markets.
UCITS ETFs: Smarter Global Diversification
Many professionals mistakenly assume that investing in US-listed ETFs provides sufficient diversification. While these ETFs do offer global exposure, they remain US-situs assets, which means they can attract up to 40% estate tax for Indian residents.
UCITS ETFs, on the other hand, are domiciled in jurisdictions such as Ireland and Luxembourg, offering similar global exposure without the estate-tax risk.
You can read our detailed guide on why accumulating UCITS are better than the U.S. ETFs to understand the tax and compliance advantages in depth.
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 (~25–30%) | 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 |
What Makes Paasa Different
Paasa | Explanation | |
RSU diversification & management | ✅ | Helps professionals convert concentrated employer stock into globally diversified portfolios. |
UCITS ETF access | ✅ | Provides exposure to global markets without the 40% U.S. estate-tax risk linked to US-situs assets. |
Global market coverage | ✅ | Enables investing across 150+ markets in equities, bonds, and ETFs. |
Multi-asset diversification | ✅ | Combines global equities, ETFs, and fixed-income options for long-term balance. |
FEMA & LRS compliance | ✅ | All remittances and reinvestments are fully aligned with RBI regulations. |
Tax-ready annual reporting | ✅ | Simplifies filing by consolidating INR and USD holdings with gain/loss summaries. |
UCITS look-alike finder for U.S. ETFs | ✅ | Helps identify equivalent UCITS ETFs to replace US-listed versions and avoid estate-tax exposure. |
Dedicated RSU support | ✅ | Personalized guidance for liquidation, reinvestment, and compliance queries. |
Institutional-grade foundation | ✅ | Built for HNIs, family offices, and institutions, offering scale, custody depth, and governance. |
Managed Strategies
Beyond RSU diversification, Paasa offers managed global strategies that help investors compound wealth across markets and asset classes.
For professionals who have already begun diversifying their RSUs, these strategies are a natural next step. They bring structure and consistency to global investing without the need for constant monitoring or complex decision-making.
How to move from Zinc Money to Paasa
If you began your RSU journey through Zinc and would like to continue managing your investments with Paasa, you can reach out to us at support@paasa.com.
Our team will guide you through the next steps and help you transition smoothly.
Disclaimer
This material is provided for general information only and does not constitute investment, tax, or legal advice. Paasa does not guarantee any returns or outcomes from the strategies described. All investments and remittances should be made in accordance with applicable RBI, FEMA, and income-tax regulations. Investors are advised to seek independent professional advice before acting on any information contained herein.
