Mumbai: Financial experts are advising Indian investors to diversify their portfolios globally, saying a balanced mix of domestic and international investments can generate stronger long-term returns while reducing overall investment risk.
The recommendation comes as changing global economic conditions, currency depreciation and the strong performance of US markets continue to reshape investment strategies.
Global diversification boosts long-term returns
According to Subho Moulik, Founder and CEO of Appreciate Wealth, research by the firm found that a portfolio split equally between Indian and US equities delivered returns of around 1,080 per cent between the 2008 market bottom and March 2026.
In comparison, a portfolio invested solely in Indian equities generated approximately 750 per cent returns during the same period.
Experts say international exposure allows investors to benefit from growth opportunities across different economies while reducing dependence on a single market.
Weakening rupee adds to gains
Analysts also point to the gradual depreciation of the Indian rupee as another reason to invest overseas.
The rupee has historically weakened by around 3.4 to 5 per cent annually against the US dollar, meaning Indian investors can potentially benefit from currency appreciation in addition to gains from overseas stocks.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that most emerging market currencies tend to depreciate over time, making global diversification an important part of long-term wealth creation.
US markets continue to outperform
Over the past year, the S&P 500 has gained around 21 per cent, while the technology-focused Nasdaq Composite has returned approximately 27 per cent. During the same period, India’s benchmark Nifty 50 has declined by nearly 4 per cent.
Experts believe sectors such as healthcare, financial services and industrials in the US continue to offer attractive opportunities beyond the much-discussed artificial intelligence boom.
They also stressed that international investing is no longer limited to wealthy individuals. Retail investors can now access global markets through exchange-traded funds (ETFs) and international stocks, making portfolio diversification easier than ever.
Financial planners emphasise that diversification should complement, rather than replace, Indian investments, helping investors build resilient portfolios capable of navigating changing market cycles.