Investors should diversify portfolio across countries
- Ideally, your global portfolio should also have investments in top EMs, Europe, Japan
- A good way to reduce risk can be investing globally from the point of view of the size of gross domestic product
The US stock markets today are the mainstay in most of the global portfolios of Indian investors. The key reason is the stellar performance of some of the US-listed stocks such as FAANG (Facebook, Amazon, Apple, Netflix and Google) over the past 10 years. This prompted some of the evolved Indian investors to look at opportunities outside of the country with an aim to diversify their portfolios.