A big trigger for global diversification is the performance. In the last 10 years, we have seen a very strong performance. I do think that majority of the investors are doing it for diversification as opposed to just looking at return, says Oswal.
Global diversification trend has just started in FY21 but the momentum is likely to continue in coming years and the allocation of Indian investors outside the country could well match the global trend of 20-40%, Pratik Oswal, Head Passive Fund at Motilal Oswal AMC, and CEO at Glide Invest in the Market Podcast with Moneycontrol.
“Global diversification will not be limited to just FY21 or FY22, I feel that the trend is likely to play out in the next 5-10 years. I have managed the money of investors across the UK, US, and Hong Kong and I have seen that almost all of them have 20-40% allocation outside their home country,” he said.
Referring to the allocation, Oswal added that in the next few years Indian investors’ allocation outside of their home country could go up towards the 20-40% levels.
“A big trigger for global diversification is the performance. In the last 10 years, we have seen a very strong performance. I do think that majority of the investors are doing it for diversification as opposed to just looking at return,” he said.
Oswal concludes by saying that India portfolios are going to look very similar to global portfolios in the next 5-10 years.
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Kshitij Anand is the Editor Markets at Moneycontrol.
