Global Diversification: Why Indian investors are looking beyond home markets to the US

Core Insights - Global diversification is increasingly important for Indian investors as market cycles do not align across geographies, allowing for risk balancing and reduced portfolio volatility [1][16] - Investment flows into overseas equities have significantly increased, with a rise from USD 152 million in August to USD 279 million in September, and FY25 recording the highest annual overseas investment figure at USD 1.7 billion [2][4] Investment Trends - Indian investors are motivated to invest in US equities to access global themes, particularly in technology and artificial intelligence, which are not easily available in domestic markets [6][19] - The US stock market has shown resilience and growth, with US equities rising nearly 15% in 2025, outperforming the Nifty 50, which is up around 10% [18] Investment Mechanisms - Indian investors can gain exposure to US equities through direct investment in US stocks or indirect investment via mutual funds or ETFs [7][19] - The Reserve Bank of India's Liberalised Remittance Scheme (LRS) allows residents to invest up to $250,000 per financial year in foreign assets, enhancing accessibility to global investing [8][19] Platforms and Accessibility - Platforms like Appreciate simplify the process of investing in US stocks, making it more intuitive for Indian investors [12][19] - The Appreciate App enables investors to start their global investing journey with minimal steps, promoting ease of access to US markets [12][19] Long-Term Performance - US-listed companies are at the forefront of innovation in sectors such as AI, biotechnology, and renewable energy, providing opportunities for Indian investors to participate in global growth [13][19] - Historical performance of indices like the S&P 500 and NASDAQ has shown consistent outperformance, adding to the appeal of US equities for long-term investors [14]