Asset allocation: Should you make US and other global equities a part of your investment portfolio?

Investing in international companies listed on the US stock markets provides diversification, investment opportunities unavailable in India, good returns, and benefits from rupee depreciation.

Imagine this scenario. You are on vacation in an unfamiliar city. You search for the nearest restaurant using Google. You book an Uber using your iPhone and reach the nearest McDonald’s. You place your order for your favourite burger and coke and pay for the meal using your Visa credit card.  Now, Google, Uber, Apple, McDonald’s, Coke, and Visa are all MNCs listed on the US stock exchanges. We use so many products from foreign companies every day. What if we can invest in these foreign companies? In this article, we will discuss the latest trends in foreign investment and why people are investing more in US markets. Latest trends in foreign investment Till a few years back, asset allocation for Indian investors mostly included domestic equity, fixed income, and gold. However,...


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