If you are looking to diversify towards international markets or different geographies then consider Global ETFs than global stocks which is a better play for Indian investors, Vikaas M Sachdeva, CEO at Emkay Investment Managers Ltd said in ‘The Market Podcast’ with Moneycontrol.
Exchange-Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. They enable investors to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease.
Sachdeva is of the view that the key point to remember is the asset allocation. Mutual Funds have been investing in overseas markets for some time now, but not retail investors have not got direct access to stocks.
“Now that retail investors have got direct access to stocks, it makes sense for investors to diversify across geographies. Having said that, there might be the impulse to buy which is rising and then rue it later,” he added.
Sachdeva recommends that even though all stocks look very good for diversification purpose, but it makes more sense to look at Global ETFs because that is something which is much more comfortable for Indian investors who does not know what is happening across the board.
(Tune in to the podcast for more)Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.