Why global diversification is more than a buzzword for Indian investors

Mint

25-04-2025

As the world economy enters a phase of volatility, Indian investors are increasingly questioning the wisdom of keeping their portfolios confined to domestic markets. The Mumbai edition of Mint Horizons, hosted on April 11 at the MCA, Bandra Kurla Complex, brought together some of the most prominent voices in finance and investing to explore why diversification across geographies and currencies is no longer optional — it's essential.
Neil Borate, Deputy Editor at Mint, opened the event by highlighting the limited discourse in India around global investing. 'This is not about abandoning India,' he said, 'but about recognising that even a strong domestic story benefits from international diversification. It's about preparing, not predicting.'
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Kalpen Parekh, CEO of DSP Mutual Fund, traced the evolution of DSP's global fund strategy and spoke candidly about investor reluctance.
'For years, no one cared about global funds,' he said. 'But post-COVID, we realised that the companies we spend time and money on — Netflix, Amazon, Apple — are global. If your lifestyle is global, shouldn't your investments be too?'
Parekh emphasised that diversification isn't about chasing higher returns but managing concentrated risk. He shared data showing how multi-asset portfolios, particularly in volatile economies, often deliver better inflation-adjusted outcomes.
Saurabh Mukherjea, Founder & CIO,Marcellus Investment Managers, shared a powerful insight: most Indians unknowingly spend in dollars — from airline tickets to tech subscriptions — while saving in rupees.
'That's a recipe for disaster,' he said. 'When your liabilities are in one currency and your assets in another, you're exposed. A portion of your portfolio must be aligned with the currencies you spend in.'
Watch excerpts from the event below,
Prashant Tandon, Executive Director at Waterfield Advisors, offered a high-net-worth perspective on global portfolio construction.
'We advise clients to allocate 5–10% of their portfolios to global assets,' he said. 'But equally important is the structure — we've focused on short-term US treasuries recently given inflation risks and rate cycle volatility.'
Tandon noted how unusual it was for both equities and treasuries to fall simultaneously, reinforcing the case for truly uncorrelated diversification.
Viram Shah, Co-founder & CEO of Vested Finance, outlined the two main routes for Indian retail investors — international mutual funds and direct investing via the RBI's Liberalised Remittance Scheme (LRS).
'Mutual funds are easier, but direct investing gives more control and options — over 10,000 global stocks, 2,000 ETFs,' he said. 'There's a learning curve, yes — KYC, remittance, tax — but once you're in, it becomes second nature.' Viram Shah, Co Founder & CEO, Vested Finance at Mint Horizons Mumbai
Viram also spoke about how today's investors want tools, control, and simplicity — something Vested has prioritised with instant account setups, thematic portfolios, and educational content.
Siddhartha Bhaiya, MD & CIO of Aequitas Investment Consultancy, offered a macro view rooted in contrarian investing.
'Gold has outperformed Indian and US equities over 25 years — in both INR and USD terms,' he said. 'When rules of trade break down, gold holds value. It's not a trend — it's insurance.'
He added that understanding global market valuations is crucial, even if one doesn't invest abroad. 'Whether it's Germany, China or the US — know what you're buying, and what it's truly worth.'
Arindam Sengupta, Founder ofEdufund, closed the panel by shifting the focus from asset performance to life goals.
'You've built wealth — now secure your family's future,' he said. 'With products like the EB-5 visa, you diversify in dollar terms and open residency pathways. Think of it as investing in options — not just markets.'
He stressed the need to evaluate such choices like any other investment — with a focus on credibility, track record, and alignment with long-term goals.
The Mumbai edition of Mint Horizons made one thing clear:diversification is no longer about just returns — it's about resilience. Whether through US treasuries, global ETFs, gold, or second-country residencies, Indian investors are being called to think beyond their borders.
As one speaker summed up: 'The world won't always move how we expect. Diversification is how we prepare for the stories we haven't written yet.'
First Published: 25 Apr 2025, 02:39 PM IST