Is Global Investing A Luxury Or Necessity?

Global investing is not about replacing your domestic investments. It is about complementing your portfolio with global exposure to build a diversified and resilient portfolio

- Kundan Kishore

Choosing between domestic and international investments is often compared to choosing between a fancy car brand like Ferrari and the trusted homegrown Maruti. Both can serve the purpose and deliver value, but the decision appears to be about preference, for those who can afford both.

Investing, however, is not about brand appeal or preference. It is about risk management, diversification, and long-term wealth creation. So, when it comes to global and domestic investments, it's not an either-or situation. Global investing is not about replacing your domestic investments. It is about complementing your portfolio with global exposure to different sectors, currencies, and economic cycles. Says Swarup Anand Mohanty, vice chairman and chief executive officer (CEO), Mirae Asset Investment Managers (India): "For Indian investors today, some international exposure is no longer just tactical, it is sensible diversification."

We earn our income in India either through our jobs or businesses. We, typically, own our house or other properties in our home country. Most of our investments are also tied to Indian markets. Most individuals hardly have any global exposure, and with growing confidence in the Indian markets, many don't even see the need for it.

But the real question is not whether Indian markets are good enough. "Adding global assets is not about doubting India's growth story; it's about reducing concentration risk," says Mohanty. The real question is: in an interconnected world, does it make sense to limit yourself to one geography?

Why You Should Go Global