Go global to limit India-specific shocks, hedge currency risk

Vested Finance hasenabled Indian retail investors to invest in global mutual funds. A few other platforms, such as iFAST and Crystal, also facilitate investment in offshore mutual funds. These transactions are routed through the Reserve Bank of India’s Liberal-ised Remittance Scheme (LRS), which permits remittances ofup to $250,000 per financial year.

- HIMALI PATEL

Access 96% of global market cap

Investors gain access to a wider pool of opportunities. “India is only about 4 per cent of the global equity market cap, which means over95 per cent of opportunities lie outside India,” says Viram Shah, founder & chief executive officer (CEO), Vested Finance. Investing abroad provides exposure to sectorsnotas developed in India, including global tech, luxury brands, big pharma, and green energy.

Investors get access toa range of countries and funds. Vested, for instance, provides access to more than 50 funds across the US, Europe, Japan and emerging markets.

Diversification protects investors during shocks that hit the Indian market. “A globally diversified portfolio reduces the portfolio impact caused by India-specific shocks, like the US tariffs,” says Vishal Dhawan, founder & CEO, Plan Ahead Wealth Advisors.