In this interaction with ETMarkets’ Kshitij Anand, Inderbir Singh Jolly, CEO of PL Wealth Management, explains why allocating 10-20% of a portfolio to global assets is becoming a sensible strategy for most Indian investors.He outlines how global exposure can boost resilience through access to international themes, currency diversification and broader market opportunities, making global investing a core, rather than optional, element of modern portfolios. Edited excerpts –
Q) Global investing has become popular in recent years, especially in India. What does data suggest?
A) The trends are unmistakable. India accounts for just 4-4.5% of global equity market capitalization, meaning more than 95% of investable global opportunities lie outside domestic markets.
This alone makes a compelling case for international diversification. RBI data shows a second, equally powerful trend: Indian residents’ overseas financial assets have grown sharply to around $1 trillion in the 2024-2025 financial year, reflecting a structural shift towards global asset ownership.
This is no longer a niche allocation; global investing is now a mainstream decision for Indian households and asset portfolios.
Q) As we move into 2026, are you seeing a noticeable increase in outbound investment inquiries from your clients, despite domestic markets reaching record highs?
A) Yes – in fact, strong domestic markets have reinforced the desire for global balance. Investors are increasingly recognizing that India’s growth story and global innovation cycles complement each other, rather than compete.
Outward remittances under the Liberalized Remittance Scheme (LRS) remain significant. According to the RBI’s DBIE dataset, LRS outflows in the financial year 2024-25 were around $29.6 billion, with an increasing share going into investments such as equities, ETFs and global funds.
Interest for 2026 continues to grow, especially in the US, Japan and global thematic solutions, indicating greater portfolio sophistication.
Q) What key global themes are attracting Indian investors today: AI, technology, clean energy, healthcare, commodities?
A) Technology and AI-centric innovation continues to lead the way. The largest US technology companies represent nearly 30% of the S&P 500’s market capitalization, illustrating the concentration of global innovation and scale.
In addition to technology and AI, investors are paying attention to:
- Clean energy, a sector that will receive almost $2 trillion in global investment by 2024 (IEA World Energy Investment report).
- Healthcare and life sciences, a category with an estimated global market size of between $8 and $11 trillion.
These long-term structural themes have limited pure representation in India, making global exposure essential to capture them.
Q) What key changes under the Liberalized Remittance Scheme (LRS) or other regulations should investors be aware of in 2026?
A) The $250,000 LRS limit remains unchanged, but the regulatory environment is shifting toward improved compliance, transparency and reporting discipline.
Authorities emphasize:
- Accurate TCS compliance
- Correct reporting of foreign assets (Schedule FA)
- Traceability of investment flows through authorized channels
The message from regulators is clear: India encourages foreign investment – provided it is transparent, well-documented and compliant.
Q) How should investors handle compliance, taxes and reporting when investing money in foreign assets?
A) Global investing is operationally simple when done right. Investors must:
- Submit accurate LRS returns to authorized dealers
- Understand capital gains taxes on foreign assets
- Ensure proper reporting in Schedule FA of the income tax return
As Indian residents’ overseas wealth grows, compliance is a critical responsibility of the portfolio. Using regulated platforms or licensed advisors significantly reduces execution, tax and reporting risks.
Q) How much of an average Indian investor’s portfolio should ideally be allocated to global assets by 2026?
A) A diversified allocation of 10-20% to global assets is generally suitable for most investors, balancing India’s high return potential with access to global innovation and currency diversification.
Among high-net-worth investors, global exposure of 25 to 40% is common, especially for those looking for structural themes such as AI, clean energy, biotechnology or advanced manufacturing.
Q) Do global ETFs, mutual funds or direct equity investments provide the most efficient exposure?
A) The most practical and cost-efficient channels remain:
- Global ETFs (direct or India-listed feeder routes)
- International investment funds run by experienced asset managers
These provide diversification, transparent pricing, professional supervision and simplified tax handling. More sophisticated investors can opt for direct global equity investing through LRS, but this requires comfort with currency volatility, foreign brokerage activities and additional reporting requirements.
Q) Which international markets look most attractive to Indian investors in 2026: US, Japan, Europe, China or emerging markets?
A) The United States continues to anchor global allocations. With approximately 45% of the global stock market capitalization, the US is a decisive leader in technology, AI, semiconductors and healthcare innovation.
Japan has emerged as an attractive secondary allocation, supported by corporate governance reforms, attractive valuations and strengthening earnings cycles. Emerging markets offer selective opportunities, Europe remains a tactical allocation and China requires calibrated, risk-aware positioning.
India’s economic trajectory remains strong, but global markets offer depth, innovation and diversification that cannot be replicated domestically.
With outbound flows increasing, overseas asset ownership increasing and global themes evolving rapidly, investors who adopt a structured global allocation are better positioned for resilience and long-term wealth creation. Global investing is no longer optional; it is an integral part of a modern Indian portfolio.
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(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of the Economic Times.)
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