While diversification has it merits, between asset classes, or between geographies, there are other factors too, some mathematical, some personal.
Will you be taking the MF route by investing in international funds, or invest directly in stocks, say in US, via the platforms available? If by MF route, which geographies the funds are investing, across global markets where they are allowing funds from India, or again is this just US? What has been the performance of such funds over the course of a few years, not 1 or 2 years? What are the funds’ strategies in times of higher valuations, or are they invested in all times finding value picks?
If you want to take the direct route, you can search for the relevant threads here in VP, from opening an account to analyzing a foreign business.
What % of your PF you want to diversify, and what return are you expecting from such a PF, will that return be meaningful to you, or do you think you can very well get that return by yourself or through MF route by participating in Indian market alone?
Countries of bigger names, large economies, with democracy, institutions etc don’t go bust in generally, but there may exist times, where something happens and investors’ funds may get stuck and may take some time to retrieve. Not that this will happen here, but we will have more idea about what to do, relatively.
Just some thoughts. I have no investments in foreign geographies, although I did look at investing in US stocks, but after gathering some initial information, I felt like the whole thing is cumbersome, and is not worth the effort, for now, so dropped the idea.
