Nifty or Dow? Or Nasdaq? Should Investors First Pick Indian or International Funds?

This question has been rising above the ground in the current market situation – Which fund should investors bet first on Indian or foreign markets? Many of the point of view that markets worldwide are so much turmoil should not be it a good opportunity to go for international funds?

Many brokers advised investors to start putting funds in international markets, especially when investing in foreign markets like the USA has recently become quite popular.

Experts advise investors, especially those who do not have any children and no dependents, they are first advised to build a strong, diversified portfolio in India. After that, it is advisable to explore foreign options. If it were suitable, your financial agents would have told you when planning your portfolio.

What’s Investors Actions Suggesting?

Most investors’ actions suggest that they can take risks and diversify their portfolio with other markets because of no dependency. The answer to this psychology is first to build a strong portfolio in India then diversify. Risk-taking capacity is good, but it needs to be calculated.

Portfolio diversification with multiple economies or geographical diversification is beneficial, especially with the ongoing India-China dispute, but it makes sense in investing in international markets only if investors plan on travelling to foreign lands or plans to send their pupil for studies abroad or to start a new company – then investment makes sense as it would help in mitigating the currency fluctuation risk.

Things to Consider Before Opting in International Markets?

Before going for international funds, investors also need to think if they can track possible political or economic disturbance in another country. Problems can happen anywhere, and you may not have enough time to record different markets of different countries.

Diversified Investment Portfolio: Is it Good or Bad?

A diversified portfolio idea is good, but one should first be certain of the right asset allocation in the Indian market. For example, you are in the financial planning business, and there is a crash in the financial market, so you cannot just start selling clothes to minimize your risk. People puzzle diversification to limit risk, but this is more gambling than diversification. The same theory applies to investment.

If the idea is to get exposure, investors can invest in foreign markets through mutual funds that involve international market allocation or choose ETFs on an exchange as a safer option. Moreover, whether it’s India or anywhere else, Mutual funds are the safest option. But before all of that, you need to focus on asset allocation and financial planning first.

Last but not least would be the natural option of considering stocks, but it would be only advisable to those who have enough time, money, and expertise in the stock market.