Maintain 15-20% allocation to international funds despite ongoing downturn

Remember that you need to diversify away from your home country, and hedge against the rupee's depreciation

Many retail investors have diversified their portfolios internationally over the past few years. Several international funds are witnessing a downturn. Motilal Oswal NASDAQ-100 Exchange Traded Fund (ETF), for instance, is down 24.6 per cent while its S&P 500 Index Fund is down 14.5 per cent year-to-date (YTD). Emerging market funds have been hit particularly hard: the PGIM India Emerging Markets Equity is down 33.7 per cent YTD.

Changing rate, liquidity environment

High inflation worldwide is the key concern. At 8.3 per cent in April, consumer inflation in the United States (US) was close to its 40-year high. The Russia-Ukraine war and China’s