T1 - @HarmoniusNota, As per your goal, risk & time horizon #International #mutualfunds are very good vehicles for economic & cross currency (mainly U$D) DIVESIFICATION especially in this global turmoil caused by #COVID__19. https://twitter.com/HarmoniusNota/status/1248843517004308482
T2- Economic Diversification - India’s share of world GDP is around ~3%. For a domestic investor it means that ~97% of world GDP remains untapped. No one country can top the charts consistently at a macroeconomic level. Every country has their own economic cycle.
T3- #Currency Diversification - The USD/INR exchange rate has moved from ~44.32 in April 2010 to ~76.3 in April 2020 that is 72% of absolute depreciation and annual depreciation of 5.6%.
T4 - International funds may not suit everyone. Choose the right economy and fund. Invest only for diversification unless you have any other specific goals/reasons. Indian Residents are allowed to invest U$D 250,000/- abroad, under Liberalized Remittance Scheme limit of RBI.
T5 - It is very important to understand that India is one of the fastest growing economy in the world and the 5th largest overall as of 2019, overtaking the UK and France. One should not eat too much abroad when the food at home is so good, healthy & delicious.
T6 - Investing in the US economy will be more fruitful at this time mainly due to its economic and currency strength in the world. Don't invest more than 10-15% of your portfolio unless if you have any specific goal/reason.
T7 - Due to the global turmoil because of COVID19 staggering your lumpsums or investing via SIP's is the wise thing to do. Mutual Funds have corrected sharply and this is a very good opportunity to diversify internationally from a 5 - 7 Yr perspective.