Internationalising Portfolios: Moving Beyond India-Focused Investments

Global Markets Convergence Drives Shift in Investment Strategies

As the global economy becomes increasingly interconnected and unpredictable, investors and market leaders are reevaluating their investment approaches. At the Moneycontrol Global Wealth Summit 2026, a consensus emerged that diversification is no longer a tactical choice, but a core investment strategy.

For much of the last decade, Indian investors have benefited from staying close to home, with strong growth, rising retail participation, and consistent equity returns making India the centrepiece of portfolios. However, recent market phases have exposed the limitations of this approach, with periods of muted returns and global shocks reinforcing the need to look beyond a single market.

Allocating Across Geographies Helps Manage Risk

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Diversification is not about diluting conviction, but managing risk more intelligently, as explained by Saurabh Mukherjea, Founder & CIO, Marcellus Investment Managers. By allocating across geographies, investors can stabilise their returns and avoid the boom-bust cycle of every country. Markets like India and the US may both deliver long-term returns, but they rarely move in sync.

The case for global exposure is also being shaped by where innovation is happening. As Abhishek Tiwari, CEO, PGIM India Mutual Fund, pointed out, India offers relatively stable growth, but the real edge globally comes from innovation-led sectors. To participate in that upside, investors will need to go beyond traditional markets and explore specialised global markets.

Shift from Geography-Led to Theme-Led Investing

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This is driving a shift from geography-led to theme-led investing, with opportunities increasingly borderless. Investors are now asking not just where to invest, but what to invest in, to get better returns without much risk. From AI and semiconductors to energy transition and healthcare, the focus is on identifying opportunities that can deliver returns regardless of geography.

At the same time, conversations reflected a broader rethinking of asset allocation. The surge in interest in gold and other alternatives is part of that shift, but not without caution. As Kalpen Parekh, MD & CEO, DSP Mutual Fund, noted, gold deserves an insurance weight, not an investment weight.

Caution in a Market Driven by Behaviour

The market is driven by behaviour rather than fundamentals, with investors often reacting to price movement rather than the underlying fundamentals. As Vaibhav Porwal, Co-founder, Dezerv, observed, this reinforces the need for disciplined allocation and a more balanced approach.

What is emerging is a more balanced approach, one that combines India's growth with global opportunity, and blends returns with risk management. Diversification is no longer just about spreading bets; it is about building portfolios that can endure.