Two years of no returns from Indian equities are pushing investors to chase opportunities overseas, but Radhika Gupta says recent performance shouldn’t be allowed to overturn the basic order of portfolio construction.
The Edelweiss Mutual Fund chief has 17% of her own portfolio invested abroad and would prefer to raise it to 20%. For most Indians, however, she recommends a 10-15% global allocation but only after building the portfolio’s basic “dal-chawal” of domestic equity and debt. Global diversification, in her framework, is necessary, but it should be the fourth component of the investment thaali, not the first.
