How India invests globally

As the rupee falls furiously against the dollar, Indian investors are seeking their fortunes elsewhere. Global investing has acquired a geographic expanse, enticing young investors even in the smaller cities, with a focus on global tech stocks, and a desire to stay invested for a longer period. A recent report, ‘How India Invests Globally,’ captures this change, as global exposures shift from being a niche strategy to mainstream aspiration among growing segments of Indians. “Global investing… has moved from curiosity to conviction,” says Viram Shah, Founder & CEO, Vested Finance. “What we are seeing… is not just higher participation, but greater intent. Investors are thinking in terms of asset allocation, diversification, and long-term global exposure rather than one-off bets.”

One of the key drivers is the exchange rate. The rupee has been on a downward trajectory against the dollar for over a decade, and has weakened by an average of three per cent annually. While this erosion appears modest, its cumulative impact over time is significant, and often overlooked in headline return comparisons. In recent times, the fall is steeper, and obvious. Hence, Indians have realised that a portfolio invested entirely in rupee assets grows within the constraints of a currency, and steadily loses both the earning and purchasing power on the global stage.

Many of the financial goals that Indian households save for, such as foreign education, healthcare, overseas travel, and even retirement, are ultimately tied to dollar-linked expenses. This, according to the savvy investors, makes a strong case for including assets that provide a currency hedge within long-term portfolios. This explains why Indians are not looking only inwards any longer. As domestic markets mature, and financial awareness deepens, global investing has surely become a part of households’ portfolios. Indians are interested in movements of foreign stocks, and global indices.

One of the most striking findings of the report is the geographic spread of global-inclined Indian investors. Participation is no longer limited to the largest metros. Investors from over 145 cities across the country are invested in global markets, with nearly half from Tier II and Tier III cities. This signals a deepening of financial access, and awareness beyond the traditional urban centres. Digital platforms have obviously played a critical role in enabling this shift, as they reduce entry barriers, and make global markets accessible regardless of location. As a result, global investing has emerged as a genuinely nationwide trend rather than a metro-led phenomenon.

Age is another defining feature of the global investor’s profile. According to the report, nearly half of them are under the age of 35, and the first-time youngsters begin small, slowly, and cautiously. Nearly 38 per cent begin the global investing journey with less than $500, and follow an incremental approach rather than large one-time bets. “Global investing is being adopted early in the investing lifecycle,” the report observes, which suggests that the younger investors are comfortable to allocate money globally, alongside, rather than before or after, domestic investments.

Equities dominate the global portfolios. The report shows that more than two-thirds of the investments are in stocks, and just less than a quarter are in exchange-traded funds (ETFs), which replicate the patterns in specific global indices. The remaining percentage is invested in cash, with a one per cent allocation in global funds. This highlights a preference for direct participation in global firms, which is complemented by passive exposures through ETFs. Investors, on an average, hold eight stocks in overseas portfolios, which points to a measured diversification rather than concentrated bets.

Among the individual stocks, it is not surprising that the favourites include the popular and familiar global tech leaders such as NVIDIA, Tesla, Apple, Meta, Alphabet, and Microsoft. It suggests a safety-first approach, and buys stocks of known and established firms, rather than chase higher returns in start-ups, and new firms. “Familiarity and long-term conviction play a significant role in stock selection,” the report notes. The behaviour is akin to that of investors who opt for the established long caps, rather than take risks with emerging midcaps, or volatile, but seemingly-lucrative small caps.

While stocks form the core, ETFs are important as stabilisers. The report finds that more than 60 per cent of the global investors include both stocks and ETFs to combine growth-oriented bets with diversified exposure. Within ETFs, passive strategies are preferred, as 27 per cent of ETF allocations are directed towards index ETFs, which indicates an appreciation for low-cost, broad-based market exposure rather than thematic or actively managed strategies. This suggests that the Indians use ETFs not for tactical trades, but as long-term building blocks within global allocations.

Retail investors start small, and add to portfolios through steady, and disciplined contributions. The average global deposit of $1,634 reflects a cautious and deliberate entry rather than a speculative move. High net-worth individuals (HNIs) commit larger sums, with an average deposit of $23,807. This points to deliberate, and long-term global allocations rather than tactical exposure. Crucially, retail investors make up more than 80 per cent of the global participants, and HNIs account for less than 20 per cent. Thus, global investing seems broad-based rather than confined to a narrow elite. In addition, 68 per cent transfer funds more than once. Overseas investing is a repeat habit, and not a one-off experiment.

Contrary to the idea that global investing is driven by short-term performances, the report highlights a long-term orientation. Many investors treat overseas exposure as strategic portfolio components rather than opportunistic add-ons. Notably, 38 per cent increase global allocations within the first year, which signals that their confidence levels go up after the initial barriers are crossed. “Repeat investment behaviour indicates growing conviction,” the report states, and suggests that the first-time, and young investors return to build larger positions as familiarity improves. Thus, global investing is part of a process, which grows over time.

Despite the strong momentum, the report acknowledges that there are challenges. Regulatory complexity, taxation clarity, and awareness gaps slow down wider adoption, especially among the first-timers. “For many potential investors, complexity remains a bigger hurdle than intent,” the report cautions. Simplified platforms, improved education, and transparent processes reduce these frictions. The ability to start with small-ticket sizes encourages global investing, and confidence-building. “India’s global investing journey is still at an early stage,” the report concludes, “but the direction is unmistakable. Global assets are becoming an integral part of how Indian investors think about portfolio construction.”