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Investors should rebalance exposure to US-focused funds; don't exit

Profits booked in these funds should be deployed in a diversified EM fund

Investors should rebalance exposure to US-focused funds; don’t exit
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Investing in the US market also provides Indian investors a hedge against the rupee’s long-term tendency to depreciate against the dollar

Sanjay Kumar Singh New Delhi
US-focused funds have rewarded investors well with an average return of 31.2 per cent over the past year and 15 per cent (compound annualised) over seven years. Such a stellar performance has given rise to many questions in the minds of new and existing investors. 

Why invest in the US market?

Investing in US equities provides geographical diversification. The correlation between Indian indices like the Nifty50 total returns index (TRI) and Nifty 500 TRI with the Nasdaq 100 TRI is just about 0.2.    

The US is the most developed market in the world with very high-quality companies. Many of