Why Global Investing Is No Longer Optional for Indian Investors
Samsung, Reliance, TATA – What Do They Have in Common? A Lesson for Your Portfolio!
Ever heard of a small grocery trading company that sold noodles to China?
That was Samsung in 1938. Fast forward a few decades, and they’re a global tech powerhouse – leading the world in smartphones, TVs, and semiconductors.
The same story plays out closer to home. Reliance Industries began with textiles, TATA started with trading. Today, they dominate multiple industries—energy, telecom, retail, and automobiles.
📌 What’s the lesson? Diversification isn’t just a business strategy—it’s a thrive strategy. And guess what? The same principle applies to investing!
So how do YOU diversify?
Most of us start investing with equity mutual funds via SIPs—a no-brainer!(Sensex has delivered an 800x return since 1980 ~16% CAGR)
But what next?
🌎 International diversification, via international Mutual Funds! Here’s why investing beyond India makes sense:
✅ Hedge against a weakening rupee, weak domestic currency will provide additional delta!
✅ Participate in global tech innovation (Think: Apple, Google, Tesla!)
✅ Shield your portfolio from domestic market fluctuations
✅ Taxation is similar to domestic mutual funds (check graphics,)
Since RBI caps industry wide exposure to international assets at $7 billion and $1 billion at fund level most funds do not accept lumpsum payments. Refer SIP returns of few well performing funds in graphics! (source, moneycontrol.com)
Originally published on LinkedIn
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