Indian Investors Go Global: A New Era of Diversified Portfolios

Indian investors are diversifying beyond domestic markets, embracing US equities, ETFs, and global funds, according to a Vested Finance report. This trend is driven by broader access to research, digital tools, and the depreciation of the rupee, leading to a four-fold increase in outbound investment by FY25.

In a significant shift, Indian investors are expanding their investment portfolios beyond domestic stocks to include US equities, thematic ETFs, private markets, and global funds. A report by Vested Finance highlights this trend as part of a more strategic approach to portfolio management and a growing engagement with global markets.

The report, titled 'How India Invests Globally 2025', attributes this shift to enhanced access to research, digital tools, and educational resources, particularly in non-metro cities. It also points to the depreciation of the rupee, which has made global investments more attractive by altering long-term financial outcomes.

Data shows a marked increase in outbound investment in overseas equity and debt, surging from USD 422 million in FY19 to approximately USD 1.7 billion by FY25. Vested Finance CEO Viram Shah notes that investors are increasingly focused on asset allocation and diversification, demonstrating a long-term global perspective rather than short-term gains.

(With inputs from agencies.)