Curated portfolios provide an attractive investment route as they are designed to simplify investment decisions, and avoid the research required when self-directing their investments
NEW DELHI: Indian investors looking at international diversification and better returns but are less familiar with investing in US securities are seeking curated portfolios of stocks and ETFs that help simplify global investment decisions.
Over the past year, there has been more attention on international investing as people have seen the US markets withstand covid-19 with more stability. As an evolved step to do-it-yourself global investing, these ready-made portfolios enable investors to build a diversified exposure in securities across sectors, geographies and asset classes.
Global investing platform, Stockal, which had launched its curated portfolio service called Stacks five months back is witnessing inflows of around ₹10 crore every month into the platform.
“There is a natural tendency to want advice. People are also looking for advice on where to put their money after they have invested in known names such as Tesla and others. It’s been five months since we launched Stacks, and the demand is pretty strong. Overall, we have around ₹35 crore invested via Stacks," said Sitashwa Srivastava, CEO, Stockal, a fintech that enables global investing for Indians.
The investing platform has partnered with wealth management firms to create, maintain and manage portfolios.
Moreover, Globalise, which is India’s first platform for guided global investing recently launched its curated portfolio service called Globes. “Curated portfolios provide an attractive investment route as they are designed to simplify investment decisions, and avoid the research required when self-directing their investments," said Viraj Nanda, CEO, Globalise.
Apart from theme-based portfolios next-Gen tech, small-caps and mid-caps, Globes also offers goal-based investing such as overseas education, vacation and retirement.
According to Srivastava theme-based portfolios that are more in demand among Indian investors are electric vehicles, US tech bluechip and ETF disruptor.
The benefits of investing via curated portfolios offered by global investing platforms is that they offer access to a bigger number of stocks and exchange-traded funds (ETFs).
“By investing directly on a global investment platform, an investor’s assets are held in dollars. This means that even when they sell their investment, the cash remains in dollars. This allows investors to build a dollar corpus when saving for overseas expenses such as education," said Nanda.
However, investing in curated portfolios come at a cost. At Globes, there is a purchase fee of $2.99, and a monthly platform charge of 0.1% of the asset under management, while for Stacks, it is usually 1-2% of the AUM is charged quarterly.
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