How can Indians invest in international markets?
What's the story
Global investing is often considered the "only free lunch" in finance, a term coined by Nobel laureate Harry Markowitz. It refers to diversifying portfolios across geographies to reduce risk without sacrificing returns. While investing domestically may seem safer, it can actually be one of the riskiest moves an investor can make due to overexposure to a single economy.
Market analysis
Risks of local investing
The Indian stock market is heavily tilted toward banking and traditional IT services. The Indian rupee also has a depreciating bias, falling 3-4% annually against the US dollar. By investing only in India, investors miss out on sectors where other countries excel. For instance, the US leads in technology and artificial intelligence while East Asia (Taiwan, South Korea, Japan) is known as the world's factory for tech supply chains.
Investment strategy
Benefits of global investing
The All-Country World Index (ACWI) is a great way to access global growth. With 65% weightage to the US and 35% to other countries, it invests in US mega-cap tech, semiconductor infrastructure, European value stocks, Japan's earnings revival, and Asia's manufacturing engine. The ACWI provides a balanced approach by automatically rebalancing investments based on global economic winners. It delivered a dollar return of 22% in 2025 and an annualized return of almost 12% over the last decade.
Fund access
How to invest globally?
The LGT India Global Equity Feeder (IFSC) Fund from GIFT City provides Indian investors with access to the ACWI. A balanced 60/40 portfolio of equities and bonds has been a durable allocation framework in global investing. With the US Federal Reserve currently easing interest rates, analysts at Alliance Bernstein expect over $7 trillion in US money-market funds could move into bonds as rates drop, further boosting bond prices.
Bond fund
Global bonds for Indian investors
The LGT Wealth Global Bond Fund from GIFT City targets a US dollar return of over 8% per annum, maturing in August 2028. The fund aims to outperform traditional USD fixed deposits while eliminating long-term duration risk. "Striking a balance is at the core of LGT's investment philosophy," said Nikhil Advani, Managing Director - International Business at LGT Wealth India.