10 hrs ago
AI Volatility Could Push Global Portfolios Toward India, Morningstar Says
Some investment portfolios have put too much money into United States technology and artificial-intelligence companies.
Those stocks have become more volatile, or less steady.
Morningstar’s Wing Chan said investors might spread their money more widely because of this.
Some global funds that own less India could increase their India investments.
They might also look at China and other markets.
Chan said investors should not try to guess every future market event.
Instead, they should build portfolios with different countries, investments and types of assets.
He also said Indian investors may benefit from gradually looking beyond Indian shares.
Morningstar’s Wing Chan said global emerging-market portfolios could raise their India allocations as AI-stock volatility grows.
Investors may redirect some capital toward India and China after portfolios became concentrated in United States equities and technology stocks.
Chan highlighted diversification beyond United States equities, active exchange-traded funds, private-market vehicles and broader asset allocation as key trends.
He said investors should build portfolios able to withstand unexpected events rather than try to predict unpredictable markets.
Chan acknowledged India’s home bias but said Indian investors should gradually increase exposure to global stocks and other asset classes.
- Who
- Wing Chan of Morningstar discussed possible changes in global emerging-market portfolios and advice for Indian investors.
- What
- Global portfolios may increase their India allocations as volatility in artificial-intelligence stocks encourages greater diversification.
- Where
- At the Morningstar Investor Conference India 2026; the specific venue was not stated.
- When
- The comments were made at the Morningstar Investor Conference India 2026; no exact date was stated.
- Why
- Portfolios have become concentrated in United States equities, technology stocks and AI-related investments, increasing event risk and encouraging investors to diversify.
Global diversification
Domestic investment focus
Portfolio exposure
Global diversification
Chan argued that global investors may diversify away from concentrated United States technology holdings by increasing exposure to markets such as India and China.
Domestic investment focus
Indian investors have understandable reasons to maintain a strong home bias, including India’s relatively fast economic growth, long-term equity returns and high-quality companies.
Investment strategy
Global diversification
Chan recommended building portfolios across countries, asset classes and investment vehicles to withstand unexpected events.
Domestic investment focus
Investors may favor equities, small-caps or mid-caps at different points in the market cycle, meaning allocations can reasonably reflect cyclical conditions.
Key facts
- Speaker
- Wing Chan, head of manager research for Europe and Asia Pacific at Morningstar
- Potential shift
- Global emerging-market portfolios could increase allocations to India
- Other potential market
- China was also identified as a possible destination for returning capital
- Main catalyst
- Rising volatility around artificial-intelligence stocks
- Portfolio trends
- More diversification beyond United States equities, greater use of active ETFs and increased private-market allocations
- Advice to investors
- Construct robust, diversified portfolios rather than attempt to predict global market events
- Indian investor behavior
- Chan said strong home bias reflects India’s economic growth, long-term equity returns and high-quality companies
Quotes
Wing Chan
Head of manager research for Europe and Asia Pacific at Morningstar
“What we are trying to do is not try to anticipate what is going to happen, as global markets are very unpredictable currently. We are trying to advocate for investor portfolios to be constructed in a robust way to make sure they are sufficiently diversified”
financialexpress.com
“Markets have become very concentrated, which is also reflecting in portfolios as they are showing bias towards specific areas of the market like AI or tech or particular markets, which adds to the event risk”
financialexpress.com
Sources
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