Balancing Local and Global: How Diverse Should Your Profile Be?
At the end of May this year, India’s market capitalisation stood at $3.3 trillion (₹272 trillion. This has led to a reclamation of India's status as the world’s fifth largest stock market after having lost this spot to France in January. It’s not surprising that foreign investors have since added $5.7 billion (₹469 billion) worth of Indian stocks after the country showed one of the highest GDP growth rates among the world’s largest economies . With a stable earnings outlook from the local market, Indian stock market investors must carefully consider where to invest. That’s because the Indian stock market offers significant opportunities, but diversifying into foreign markets can nonetheless provide added advantages. This article aims to help Indian investors understand the benefits of both local and global investing and how to strike the right balance. Advantages of investing in local Indian stocks Investing in local Indian...