New investors should enter systematically with a minimum seven-year horizon

New investors should enter US-focused funds systematically with at least a seven-year horizon, while existing ones rebalance portfolios and moderate tech exposure amid high valuations

Investing in US equities has proved rewarding for Indian investors during a period of muted performance by domestic equities. While Indian flexicap funds returned 3.6 per cent over the past year, schemes investing in US markets delivered far higher gains. The S&P 500 index and the Nasdaq-100 have returned 18.5 per cent and 27.4 per cent, respectively. 

The US remains a robust and well-regulated market. “US equity markets have delivered strong returns over the past year, led by resilient earnings, AI (artificial intelligence)-driven productivity optimism, and a robust economy. While valuations are elevated in some segments, particularly largecap