“Don’t put all the fruits in one basket”. We believe that every Indian Investor should take advantage of available avenue to invest abroad to improve portfolio diversification and reduce risk related to currency and single country emerging market economy. Offshore investing unlocks global diversification, provides exposure to some of the world’s leading companies and economies as well as exposure to industry sectors not available in Indian Market.
Diversification of investments is the primary benefit of Investing offshore. Spreading out investments across countries outside India should reduce overall portfolio risk and allows an investor to benefit from appreciation of the US dollar against Rupee (Table 1)
Table 1 : Performance of S&P 500 and Nifty Total Return Index (TRI)
for the period ended 31st July 20191
|Nifty TRI – USD||S&P 500 TRI – USD|
|Average of Rolling five year return over the last 10 years||8.16%||9.18%|
- Investment Opportunities:
Total market capitalization of Indian stocks is Approx $2 Trillion compared to $30 Trillion2 for the US stock market. By investing offshore, one can get exposure to some attractive growing sectors that are absent or very under-represented in India and companies that have global leadership in their respective Industry. The range of investment choices available across all major asset classes are far greater and superior to choices available in the domestic market. with global leadership position Investing offshore enables to get access to a much wider range of investment opportunities across different industries and global leaders not available in India
- Meet Financial Goals:
Investing offshore helps in financial planning and meeting international goals such as funding children’s education, retirement planning, as well as medical treatment.
How could one invest offshore?
Under the Liberalised Remittance Scheme (LRS) by RBI, an individual can remit upto $250,000 ( a family of four could remit upto $ 1 million) abroad without seeking approval from RBI in a financial year.
How could Sameeksha help?
Making the decision to invest outside India could be daunting due to complexities involved and sheer volume of International Investment available, therefore, to address the needs of the Indian investor we have launched Offshore Investment Advisory services for Indian Investors who wish to invest into the offshore market.
Our Fund manager, Mr. Bhavin Shah has more than 20 years of investment expertise in Global Equities. An MBA (majors in economics and finance) with Beta Gamma Sigma honors from the top ranked University of Chicago, he played leadership roles in building from scratch three top ranked Institutional Equity franchises: Global – J.P. Morgan, Asian – Credit Suisse, and Indian – Equirus.
We have put in place research practices and follow process driven investing approach to identify the most cost effective investment opportunities for our clients . With our strong client centric approach we intend to provide our clients investments that best suit their needs.
1. Returns and Standard deviation calculated based on total returns using monthly values. 2. Source : World Bank