Is your portfolio future-ready? #goglobal

February 14, 2022

Although there are many investment opportunities in India, it is important that you as an investor must seek to invest in stocks, bonds, and real estate abroad to diversify your portfolio. Just as we have the BSE, NSE, and other Stock Exchanges, there are stock and bond markets that trade daily throughout the world.

With increasing globalization, there are many opportunities to invest outside India,and investors can take advantage of these markets and see their capital grow around the world, all thanks to India INX.

Diversification

One of the biggest advantages of international investing is diversification. By putting your money in Indian stocks, bonds, and real estate, you are essentially investing only in India.

While many Indian companies sell products and services to companies in other countries, you still keep your investment in rupees. By investing directly in foreign stocks, bonds, and real estate, you are diversifying your risk.For example, let us assume that India’s economy is slow for a few years while other parts of the world are experiencing higher growth rates. In such a situation, you can increase the return on your investments by allocating more capital to international markets.

On the contrary, if that scenario changes, you can stabilize your international returns by investing in the local economy. In this way, diversification spreads risk.

If you want to increase the yields of your portfolio and at the same time diversify it, you can invest in international stocks from the India International Exchange (IFSC) Limited (“India INX”). INX Global Access is a platform that provides Indian investors the opportunity to trade or invest in different financial products present in the international financial markets.

If you are looking to invest in international markets, come to RKFS, which will show you how you can do it in an easy and safe way to increase your wealth. Extending your investments outside the country where you live has many advantages for your portfolio, including diversifying to mitigate risk.

Traveling to other countries opens up your panorama and allows you to add experiences that enrich your life; the same goes for investments. When you invest in global markets -for example, in shares of Google (United States), BMW (Germany), or Sony (Japan), you enrich your portfolio with new opportunities to obtain juicy profits.

For many years, investors focused on investing in national companies, but now there are tools with which you can operate in international companies.

Benefits you get when investing in international companies

Diversifying your investments in more than one country or region allows you to:

1. Mitigate risk. The different Stock Exchanges handle different economic cycles that are not related to each other, which potentially promises higher returns and lower risks. This means that if you invest in a country that is booming economically, you offset the risk with a country that is safer but will not boom much anymore.

2. Defend yourself against market fluctuations. If you look at the historical performance (in dollars) of each country, you will notice that no country has given constant returns over the years. Diversifying resources in other parts of the world enriches your portfolio and allows you to deal with losses that come from other countries or regions.

Here are few of the benefits for the investors: