{"id":16886,"date":"2025-10-02T00:22:49","date_gmt":"2025-10-02T00:22:49","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/10\/02\/investment-diversification-how-adding-global-exposure-can-strengthen-your-portfolio-markets-news\/"},"modified":"2025-10-02T00:22:49","modified_gmt":"2025-10-02T00:22:49","slug":"investment-diversification-how-adding-global-exposure-can-strengthen-your-portfolio-markets-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/02\/investment-diversification-how-adding-global-exposure-can-strengthen-your-portfolio-markets-news\/","title":{"rendered":"Investment Diversification: How Adding Global Exposure Can Strengthen Your Portfolio | Markets News"},"content":{"rendered":"


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While the domestic story has done well, experts say investors may also consider ‘local plus global’ funds as a diversified approach to investing.<\/h2>\n
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Indian investors can access overseas securities either through mutual funds investing globally or via the Liberalised Remittance Scheme (LRS).<\/p>\n<\/figure>\n

India\u2019s macro indicators have continued to surprise on the upside, with India already becoming the third-largest economy in the world. Meanwhile, global equity markets have reached new highs, with the MSCI All Country World Index hitting a record high recently driven by expectations of a US Federal Reserve rate cut and easing global inflation pressures.<\/p>\n

While the domestic story has done well, experts say investors may also consider \u2018local plus global\u2019 funds since these can give a diversified approach to investing.<\/p>\n

Investing in mutual funds with international exposure provides multiple benefits to investors, the most important one being diversification. When the domestic market faces economic downturns, the overseas market might perform differently, thus balancing the overall portfolio and reducing the volatility.<\/p>\n

Diversification<\/strong><\/p>\n

\u201cDiversification is the only free lunch,” said Jyoti Prakash, managing partner (equity) and PMS at AlphaaMoney, citing Nobel laureate Harry Markowitz. She added that \u201cevery investor should diversify across geographies and asset classes”.<\/p>\n

Across geographies, most investors show a domestic bias, focusing on local equities and bonds. While this worked for India post-COVID, the year 2025 has been a rude awakening. In dollar terms, the MSCI China Index outperformed the MSCI India Index by 36 percentage points in just the first nine months of 2025, Prakash said.<\/p>\n

\u201cIndian investors can access overseas securities either through mutual funds investing globally or via the Liberalised Remittance Scheme (LRS). Seeking advice from Registered Investment Advisors is essential to navigate investing beyond India\u2019s shores,” Prakash said.<\/p>\n

Exposure To AI, Robotics, Semiconductors, Other Innovative Tech<\/strong><\/p>\n

The \u2018local plus global\u2019 approach also allows investors to have an exposure to unique themes such as AI, robotics, semiconductors, and other innovative technology, as these themes are not directly available in the domestic markets.<\/p>\n

\u2018Local Plus Global\u2019 Funds<\/strong><\/p>\n

Investing in mutual funds following the \u2018local plus global\u2019 approach is hassle-free and can provide all these benefits in just one fund.<\/p>\n

Moreover, international investments can benefit from currency diversification. When the value of the local currency declines, foreign investments denominated in stronger currencies can provide a cushion, potentially leading to higher returns when converted back to the local currency.<\/p>\n

Let\u2019s see how some of the funds focusing on both Local Plus Global approach have fared over the years: \u2013<\/p>\n

\n\n\n\n\n\n\n\n
Scheme Name<\/th>\n1 Year Return (%)<\/th>\n3 Year Return (%)<\/th>\n5 Year Return (%)<\/th>\nForeign Exposure (%) (September 2025)<\/th>\n<\/tr>\n<\/thead>\n
Kotak Pioneer Fund<\/td>\n3.07<\/td>\n24.71<\/td>\n24.97<\/td>\n17<\/td>\n<\/tr>\n
SBI Focused Fund<\/td>\n3.51<\/td>\n16.25<\/td>\n20.93<\/td>\n11<\/td>\n<\/tr>\n
Axis Innovation Fund<\/td>\n-2.02<\/td>\n18.03<\/td>\n\u2014<\/td>\n18<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

*Direct Plan \u2013 Growth Option<\/em><\/p>\n

The strategic inclusion of mutual funds with both local and international exposure helps investors not only achieve diversification but also tap into growth opportunities across different markets and sectors. This balanced perspective, coupled with the ease of management, makes such funds an attractive option for those seeking to optimise their portfolios while mitigating risks.<\/p>\n

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Disclaimer:<\/span>Disclaimer: The views and investment tips shared in this article are for general information purposes only. Readers are advised to consult a certified financial advisor before making any investment decisions.<\/p>\n

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A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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First Published:<\/span><\/p>\n
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October 01, 2025, 13:52 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> markets<\/a> Investment Diversification: How Adding Global Exposure Can Strengthen Your Portfolio<\/span><\/div>\n
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Last Updated:October 01, 2025, 13:52 IST While the domestic story has done well, experts say investors may also consider ‘local plus global’ funds as a diversified approach to investing. Indian investors can access overseas securities either through mutual funds investing globally or via the Liberalised Remittance Scheme (LRS). India\u2019s macro indicators have continued to surprise…<\/p>\n","protected":false},"author":1,"featured_media":16887,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-16886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/16886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=16886"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/16886\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/16887"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=16886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=16886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=16886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}