Beyond Borders: Building a Truly Global Portfolio as an Indian Investor
Souvik Dey, Sid Roy & Sanjib Saha
19 August 2025
For Indian investors, retirement planning starts at home — but it shouldn’t stop there.
Government-backed retirement schemes and domestic equity SIPs can build a solid foundation, yet limiting yourself to the Indian market leaves your wealth exposed to concentrated risks and missing out on global growth opportunities.
This article draws on a recent Dollar Mentor Ask, Learn, Share session, distilling the core advice:
Make use of the conventional, domestic investment and retirement-saving tools in India, but expand your horizon with strategic investments in global markets — via the US financial system as a gateway to stocks from both US and other countries.
1. The Basics: Set Your Foundation with Domestic Schemes
Before looking overseas, every investor should secure their retirement basics. In India, that often means:
- Government-backed retirement schemes like Employee Provident Fund (EPF), Voluntary Provident Fund (VPF), and Public Provident Fund (PPF) — providing safe, fixed-income growth and tax benefits. You don’t need to master every detail; simply participate where eligible and contribute regularly.
- National Pension System (NPS) — low-cost, long-term investment with equity exposure for growth, fixed income for stability, and tax deductions on contributions.
- Systematic Investment Plans (SIPs) in domestic equity mutual funds — the easiest way to build exposure to India’s own growth while averaging your entry cost over time.
These vehicles create security and discipline — the “base layer” of your financial plan.
2. Why You Shouldn’t Stop at the Indian Stock Market
While India’s growth story is compelling, keeping 100% of equity exposure within one country concentrates your risks:
- Economic and political risk — A downturn in India’s economy, changes in policy, or prolonged underperformance could hit your portfolio hard.
- Sector concentration — The Indian market is relatively shallow in certain high-growth global sectors (e.g., enterprise tech, advanced biotech, large-scale industrial automation).
- Currency risk — All-rupee investments limit your protection if the rupee depreciates.
Global diversification is the antidote: spreading investments across countries and sectors to reduce volatility and tap into opportunities India alone cannot provide.
3. The Power of Global Diversification
Adding global equities — especially broad-based developed markets — can:
- Smooth out returns by drawing from multiple economic cycles.
- Capture growth from leading companies and industries headquartered outside India.
- Hedge against local currency depreciation with assets denominated in stronger currencies like the US dollar or euro.
- Access sectors underrepresented in the Indian markets.
This isn’t about replacing Indian equities — it’s about complementing them so your wealth isn’t tied to one flag.
4. Why the US Is Often the Gateway
When we talk about investing internationally, the US market comes up frequently. This isn’t just because US stocks have historically performed well — it’s also because:
- The US hosts the largest, deepest capital market and mature financial institutions in the world.
- US financial platforms offer products that provide exposure to both US and non-US markets — for example, a US-listed global ETF could give you a single investment holding companies from the Americas, Europe, Asia Pacific and emerging markets.
- Regulations and investor protections are stronger and more transparent.
In short, the US financial system is often the most practical gateway for Indian investors to gain access not just to US equities but to the rest of the world.
5. How an Indian Investor Can Access the Global Market
Under the RBI’s Liberalized Remittance Scheme (LRS), Indian residents can remit up to USD 250,000 per financial year (April – March) for overseas investments. Using this framework, here are two primary pathways:
Through Indian brokers partnered with US brokers: Many Indian brokerage houses have tie-ups with US firms, letting you buy US-listed ETFs and stocks directly from your domestic account (with required LRS compliance).
OR,
Direct account with a US-based broker: Firms like Charles Schwab, TD Ameritrade, or Interactive Brokers allow eligible Indian investors to open accounts remotely under certain conditions. These platforms offer access to US markets and a wide selection of international ETFs and funds.
For both options, one can choose from various global ETFs and funds listed in the US. Some examples are below:
- US Market Exposure: Vanguard S&P 500 ETF (VOO), Vanguard Total Stock Market ETF (VTI)
- Non-US Market Exposure: Vanguard All-World ex-US ETFs (VXUS, VEU, etc.), Vanguard FTSE Emerging Markets ETF (VWO)
- Global equity exposure: Vanguard Total World Stock Index Fund ETF (VT).
These funds allow you to own a slice of companies from multiple regions, all through a single holding.
THESE FUNDS ARE FOR ILLUSTRATION PURPOSE ONLY AND DO NOT REFLECT RECOMMENDARION OR ENDORSEMENT OF THE AUTHORS OR DOLLAR MENTOR
Alternatively, there are a few other options for international exposure:
- Invest via Indian Mutual Funds or ETFs with Global Exposure: Some Indian AMCs offer feeder funds into international markets, but these often come with higher fees and less flexibility compared to direct US-listed ETFs.
- Fintech investment apps: Useful for small-scale, fractional investing, though watch out for high spreads, limited product choice, and over-promotion of individual stock picking.
6. Practical Considerations
Taxes: Foreign investments are subject to Indian capital gains tax rules and may also have withholding tax on dividends from the host country.
Foreign Exchange Transaction Costs: Expect 1–2% in currency conversion spreads when remitting funds.
Compliance: Ensure all remittances and account openings follow RBI’s LRS norms and any reporting requirements.
Strategy: For most long-term investors, passive global ETFs beat frequent trading or concentrated stock bets.
7. The Takeaway
If you’re an Indian investor, your retirement planning should follow this sequence:
Secure the basics with EPF/VPF/PPF, NPS, and domestic equity SIPs.
Expand globally to reduce geographic and sector concentration risk and capture worldwide growth.
Use the US market as a platform — not just to buy US stocks, but to invest in the world via globally diversified ETFs and funds.
Your wealth should not be a prisoner of one market.
By blending India’s growth with the resilience of a globally diversified portfolio, you position yourself for stability, opportunity, and long-term prosperity.