Global funds, same tech bet? The diversification trap Indian investors may miss

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Synopsis Many Indian investors mistakenly believe they diversify their portfolios by adding foreign countries. However, numerous global indices often revolve around similar technology narratives, particularly in semiconductors. To achieve real diversification, investors must grasp the fundamental earnings drivers. Exploring Europe and Japan can unveil distinct economic pathways, offering a refreshing contrast. A thorough assessment of concentration risks and market dynamics is vital when engaging in international investments. Global diversification is not simply about adding more countries to a portfolio. Most Indian investors already have their core equity exposure at home, through something like the Nifty 500 index, and are now…

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