Why Indians need to invest in the world
In the last 9 months, the Indian equity market has been underperforming global assets. Therein lies an opportunity
Investors can diversify out of Indian equities into debt and global assets via RBI’s Liberalised Remittance Scheme or even with exchange-traded funds in India, against rupee payment
In May 2019, the Narendra Modi-led government was re-elected with a powerful mandate. Hopes for a strong economic recovery rode high, and in the second half of the month, Indian equities bounced almost 10%. Earlier that month, I had taken a contrarian position, and tweeted that gold would outperform the National Stock Exchange’s benchmark Nifty 50 index. Well, it happened more quickly than I anticipated. Between 2 May 2019 and 20 February 2020, gold appreciated 23% more than the Nifty.