As a financial strategy, diversification is frequently recommended. While diversifying one's portfolio by investing in a range of asset classes is beneficial, geographical diversity can also be considered. International mutual funds marketed by Asset Management Companies offer straightforward investing options, including via SIPs (systematic investment plans) across geographies and asset categories, for Indian investors wishing to wager on markets outside of their own country.
The equity markets in the United States are among the most developed in the world. These funds enable Indian investors to purchase equities in companies that would otherwise be unavailable in the country. Foreign stock allocations provide geographical diversification as well as a hedge against the US dollar. The top ten stocks held by these US-focused ETFs are listed below.
India's retail investors can now purchase US equities directly. Both the BSE and the NSE have announced the launch of a platform enabling Indian investors to trade in chosen US stocks. Through tie-ups with US brokers, a few brokers currently assist Indian investors in purchasing and selling US equities. There are now 12 funds that invest primarily in US stocks, either directly or through a fund of funds.
|US Stocks||No of Schemes held by MF|