Archive · 31 Jan 2026
Global Investing: Why It Matters for Indians
At a recent event in Kolkata, financial experts talked about why investing in foreign markets is important for Indians.
They explained that Indians have been doing this for a long time, like buying gold, which is a way to protect money from the rupee's value going down.
The experts shared that different countries' stock markets do well at different times, so spreading investments across countries can help manage risk.
They also discussed practical ways for Indians to invest globally, such as through special funds and direct investments in US stocks.
The key message was that global investing helps reduce risk and build a stronger investment portfolio over time.
Indians have a long history of global investing, primarily through gold, to hedge against currency risk.
Different countries' stock markets perform well at different times, making geographic diversification important.
Practical routes for Indian investors to access global markets include domestic feeder funds, multi-asset funds, direct US stock investments, GIFT City retail funds, and AIFs.
GIFT City offers structural advantages like no US estate tax and easier tax compliance for global investments.
Experts recommend allocating 20-25% of an equity portfolio to global investments to reduce risk and manage currency exposure.
- Who
- Indian investors and financial experts discussing global investing strategies.
- What
- A discussion on the importance and methods of global investing for Indian investors.
- When
- The discussion took place at Mint Horizon Kolkata.
- Where
- The event was held in Kolkata, India.
- Why
- To educate Indian investors on the benefits of global investing, including risk diversification and currency hedging.
- Gold
- Traditionally used by Indians as a store of value and hedge against currency risk.
- Currency Depreciation
- Rupee has depreciated from ₹3 to nearly ₹90 against the dollar since independence.
- Global Equity Market Shifts
- Countries' shares of global equity markets have changed significantly over the past century.
- Routes to Global Exposure
- Domestic feeder funds, multi-asset funds, direct US stock investments, GIFT City retail funds, and AIFs.
- GIFT City Advantages
- No US estate tax, easier tax compliance, and regulated by IFSC Authority.
- Home Bias
- Tendency to prefer domestic investments, similar to preferring comfort food while traveling.
- Tax Efficiency
- GIFT City funds face high tax rates on transactions, encouraging investments in Ireland or Luxembourg-domiciled funds.
- Uncertainty in Investing
- Uncertainty is permanent and should be managed through risk diversification.
- Gold Allocation
- Should not exceed 10% of a portfolio and cannot be fundamentally valued.
- Global Investing Benefits
- Reduces risk, diversifies currency exposure, and provides access to global market opportunities.