If you work in US tech, a big chunk of your net worth probably vests every quarter as RSUs — and another chunk sits back home in SIPs, EPF, and maybe property. Most NRIs treat these as two unrelated worlds. They're not. They're one portfolio, and looking at them together changes the decisions you make.
The hidden risk: single-stock concentration
RSUs feel like savings, but they're one company's stock. It's common for NRIs to have 40–70% of their net worth in their employer's shares — a risk they'd never take deliberately. Your job income and your investment are both tied to the same company; if it stumbles, both hurt at once.
A simple rule many planners use: no single stock above ~10–15% of your portfolio. Above that, have a plan to trim.
Sell-to-diversify — and the tax to plan around
- At vesting: RSUs are taxed as ordinary income in the US on the value that vests — whether or not you sell. Your employer usually withholds some shares for tax.
- After vesting: further gains are capital gains. Holding >1 year gets the lower long-term rate.
- Because you're already taxed at vesting, selling right away to diversify usually has little extra tax cost — the myth that "selling triggers a huge tax" often doesn't apply to just-vested shares.
Currency: which bucket funds which goal
Your RSUs are USD assets; your SIPs and EPF are INR. Match them to where the goal will be spent:
| Goal | Best-funded from |
|---|---|
| Kids' US college | USD assets (RSUs, US brokerage) |
| Retire in India | Mostly INR bucket + repatriated USD over time |
| India property / family | INR (NRE-funded) + planned remittances |
A simple operating plan
- See total net worth in one currency (dual-currency view) — RSUs + US cash + India SIPs + EPF + property.
- Check employer-stock concentration; set a trim rule.
- Redirect trimmed proceeds into diversified funds (mind the PFIC rules on Indian MFs — see our tax guide).
- Keep an INR bucket growing for the move-back goal.
This article is educational and not tax, legal, or investment advice. Cross-border rules change and depend on your specific residency and country. Confirm your situation with a qualified cross-border CA/CPA before acting.
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Frequently asked
Should I sell my RSUs as they vest? Often yes, to diversify — since they're already taxed as income at vesting, selling immediately usually adds little tax. Keep only what fits your concentration limit.
Where should I reinvest the proceeds? Usually diversified US-domiciled funds/ETFs while US-resident (to avoid the PFIC trap on Indian mutual funds), plus your ongoing India bucket.