A diversified index may be the ideal way to enter US markets: Experts

Only later should you venture into narrower, more focused strategies, provided your risk appetite permits

Financial planners suggest investing in the United States (US) market first to retail investors who wish to diversify internationally. The US is the world’s largest equity market, accounting for about 59 per cent of global market capitalisation.

It is also home to the world’s top companies that are custodians of some of the most well-recognised brands. Indian investors taking the passive route have the option to invest in four US indices now: S&P 500, S&P 500 Top 50, NASDAQ-100, and NYSE Fang+.

Passive, the preferred route

Most experts advise investors to use passive funds for their US exposure. With this market becoming very