Diversification in investing means spreading your risk across different assets. If you are an equity investor, don’t stop at just Indian equities. There are stocks listed in other countries too which merit some attention. But before adding assets in another currency to your portfolio, think through the pros and cons.
Benefits of investing in international assets
Adding international assets can be done in the form of stocks or you could buy bonds of overseas companies, currencies or even property. While liquidity surplus globally has insured some linkages between financial markets in different economies, the return trend in assets from different countries is still varied.
