Global Diversification

Geopolitical tensions are making pure India-only portfolios riskier than ever. Spreading your investments across global markets can reduce shocks and help your money grow even when Indian markets dip.

Here's what happened: Geopolitical conflicts and trade disruptions are making domestic stock markets more volatile, hurting India-only portfolios.. Global economies are increasingly using trade, tariffs, and sanctions as weapons — affecting Indian exports, the rupee, and corporate earnings.. International mutual funds and ETFs now give Indian retail investors easy, regulated access to US, Europe, and emerging market stocks..

What you should do: Allocate 10–20% of your equity portfolio to international mutual funds or global ETFs available through any Indian AMC.. Check if your current SIPs are 100% India-focused — if yes, add a US index fund or a global diversified fund to balance risk.. Compare expense ratios before picking a global fund — some international FOFs charge up to 1.5% extra versus direct ETF routes..

Under the RBI's Liberalised Remittance Scheme (LRS), you can invest up to $250,000 per year abroad — but domestic international mutual funds offer the same global exposure with zero forex paperwork.