Diversifying global investments beyond the US can reduce portfolio risk

A diversified fund that captures growth in other developed markets should be your next stop

Indian retail investors are increasingly accepting the need to diversify internationally to protect their portfolios from the risk of a downturn in the Indian equity market. Most have begun their international foray by investing in the US market, the world’s largest equity market, which accounts for around 56 per cent of global market cap. However, after a multi-year bull run in the US market, investors are looking to diversify into other markets. Mutual fund houses, too, have responded by coming out with non-US market offerings.

Recent non-US offerings

One such offering is the Motilal Oswal MSCI EAFE Top 100 Index