Mumbai: diversify – at home or in the United States: that’s the recipe for monetizing US stocks whose valuations have reached stratospheric heights – like in Mumbai.

The Nasdaq 100 fund returned 52% last year. It has been one of the most popular funds among Indian investors, many of whom have only recently started investing abroad.

“While there is a bubble in stocks like Tesla and Netflix, there are many individual equity opportunities available and investors can build a portfolio of companies with good fundamentals and fair valuations,” said Vikas Gupta, Chief Investment Strategist, Omniscience Capital.

Vikas believes that investors can build a portfolio of 8-10 stocks and some of the stocks with value are Qualcomm, IBM, Micron Technologies and Cirrus Logic. Of the non-tech stocks, he prefers Gamestop, Bed Bath and Beyond, Gap and Skechers.


Financial planners point out that there are growth opportunities in niche areas that are open to investors.

“There are innovative companies in themes such as biotech, clean energy, artificial intelligence and technology that Indian investors should have access to,” said Vikas Nanda, president of Globalise, a digital asset management platform to build global portfolios. Vikas recommends ETFs such as Invesco Wilderhill Clean Energy ETF, First Trust Nasdaq Clean Edge Green Energy ETF, ARK Genomic Revolution ETF, GlobalX Robotics, and Artificial Intelligence ETF.

Investors also continue to pour money into global giants that have profits not only in the US but around the world.

“We’ve seen Indian investors put money into stocks like Apple, Amazon, Facebook and ETFs like Vanguard Total Stock Market Index Fund,” said Swastik Nigam, CEO of Winvesta, a platform that allows Indian investors to trade abroad.

Investors who cannot understand individual stocks can still invest in the Nasdaq 100 for the long term.

“While earnings are strong, valuations are high, which is why investors need to take a diversified approach,” said Pratik Oswal, Head (Passive Funds), Motilal Oswal AMC.

Indian investors can invest up to $250,000 each year under the Liberalized Money Transfer Scheme (LRS). Several banking brokers such as HDFC Bank, Kotak Mahindra, ICICI Bank and several others allow Indians to invest in foreign stocks or ETFs. In addition, there are platforms such as Stockal, Globalise, Winvesta and Vested that allow investors to buy shares or seek advice and build a portfolio of companies.


This post equity portfolios: build equity portfolios outside the index abroad was original published at “https://economictimes.indiatimes.com/markets/stocks/news/build-stock-portfolios-outside-the-index-overseas/articleshow/80050627.cms”

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