Investors can look at US equities to diversify portfolio

Though US markets have been volatile, considering strong bull run in tech stocks, US stocks can be a part of investors' portfolio

- ARSHAD KHAN

EVEN as most fund managers are betting big on emerging markets such as the Indian equity market to generate super returns, some market experts believe that one should not ignore the US stock market, also known as the mother market, owing to the quality of the companies listed there and consistent wealth created by them.

"People from India are diversifying in different asset classes such as mutual funds and bonds, but geographically they have been missing out on getting exposure to other markets," said Viram Shah, CEO of Vested Finance, a platform specialising in US investment. Shah added that while portfolio managers look at emerging markets, US markets should be a part of the portfolio.

"It does not need to be 100% of their total allocations but can be a good 30-35%... We have been contributing to the top line and bottom line of the US companies but we have not been able to participate in the value they have created. Why should this be the case when we have the technology to solve this?" said Shah.