Global diversification through US equities isn’t a new idea for Indian investors, but for a long time it was operationally difficult enough that most people simply didn’t bother. RBI’s Liberalised Remittance Scheme, which currently permits resident individuals to remit up to USD 250,000 per financial year for permitted purposes including overseas investment, combined with the growth of platforms offering direct access to US markets, has changed that considerably over the past several years.
The case for US exposure isn’t about betting against India; it’s about owning a basket of global businesses that Indian markets simply don’t offer much exposure to. Large parts of global technology, consumer platforms, and healthcare innovation are concentrated in US-listed companies, and an India-only portfolio has essentially no exposure to that segment of the world economy. There’s also a currency dimension: US dollar-denominated assets have historically provided a partial hedge against rupee depreciation over long periods, since a weaker rupee mechanically increases the rupee value of dollar holdings.
As for timing, the honest answer is that there’s rarely a “best” time in the sense of a clean entry point, and trying to identify one is usually a losing game, since US markets, like Indian ones, are prone to sharp short-term moves that are nearly impossible to call in advance. What matters more is the decision to build the allocation gradually, over time, rather than waiting for a dip that may or may not arrive on schedule, and sizing the allocation appropriately within an overall portfolio rather than treating it as a separate speculative bet.
The practical considerations, tax treatment of foreign capital gains, LRS compliance, and currency conversion costs, matter as much as the investment thesis itself.
Ashutosh Financial Services helps investors think through both the strategic case and the mechanics of building international exposure. Ashutosh Financial Services’ investor education initiatives regularly cover how to approach global diversification sensibly.
