Why to go for international exposure. My thoughts

General
1

Would love to know your thoughts

From my mini blog… https://bit.ly/WhyGoInt

  1. The only reason we invest in Indian equity is because we were born here. Let that sink in. We never made a conscious choice. And it has never been easy or cheap to invest outside India. Indian equity was the only convenient option for us.

  2. India is just 3% of world’s GDP. Investing in India is very much like being a frog inside a well. India’s largest company by market cap, Reliance Industries, would be #74 in a list of US companies. It would be in the US equivalent of the Nifty Next 50. :smiley: Consider this… Vanguard’s second-biggest mutual fund is equal to the AUM of the entire Indian mutual fund industry. It’s biggest fund is almost twice the size. That’s how tiny we are.

  3. Correlation between Nifty 50 and S&P 500 is closer to 30%. Hence investing in S&P 500 gives you good diversification. You also get extra benefit from USD INR currency movement.

  4. Look at the S&P 500 list of companies and then look at Nifty 50 list of companies. Which companies will you choose? Which companies do you use on a regular basis? Which companies do you want to bet your money on?

1 Like
2

Appreciate the blog!!
Can u please suggest the way to invest and what all segments are open for investment

3

Moreover the points you mentioned compares the whole Indian market with that of US.
But can you please suggest some really beneficial points to a retail investor to opt for foreign markets.

4

Nowadays many options are there. You can open account with brokers like upstox, hdfc securities, vested etc for direct equity. Or you can go with active managed feeder funds or index funds too… I prefer Motilal Oswal S&P 500 fund

5

Hmm. I will need help in understanding your ask. This is my perspective only… As a retail investor…