An overseas PF is a good diversifier as many themes like semiconductors, electric mobility, AI and robotics, cloud, genetics and such are not fully represented yet in India. I am overwhelmed by the amount of wisdom on this forum and it would be a privilege to share and learn from you. These are highly tilted towards revenue growth, early stage with some earnings componder market leaders sprinkled in.
PLEASE DO NOT CONSIDER THIS AS ADVICE, DO YOUR DD, I am NOT A PRO
PF OBJECTIVES
- To add geographical and sectoral diversity to PF.
- To maximize returns by hopefully hitting on transformative companies.
- To hedge against rupee value erosion.
- Being an electronics, communications engineer, leverage my circle of competence.
PF CONSTRAINTS
- Funding typically limited to 7 L per year. Excess outgo taxed at 5%.
- Debt fund taxation of gains on Indian side, complicated dividend taxation.
- Death tax on US situs assets limits US domicile stock value to 60,000 usd, anything above taxed at
40% + US estate estate tax (indian citizen, Indian wife, kids, Indian domicile). - US markets are quite efficient, very difficult to beat market returns.
As a fraction of net worth, I plan to invest only 10% in overseas stocks, another 10% in india domicile ETFs. Plan to rotate stocks around into non US stocks periodically to take care of the 60k usd limit. I will not Rebalance otherwise.
Composition
Ticker. Sector. PF weight age. Domicile
ASML. Semicon. 18%. Netherlands
ISRG. med equipment. 10%. USA
TEAM. Cloud. 12%. UK/Aust
SITM. Semicon. 8.5%. USA
SKWS. 5G. 8%. USA
OLED. Semicon, 7.5%. USA
ILMN. Genetics. 6.25%. USA
AMBA. AI, robotics. 6.5%. Taiwan
BLNK. EV. 4.5%. USA
XPEV. EV. 4.5%. China
ERIC. 5G. 4%. Sweden
LIT. EV. 3%. USA
ASX. Semicon. 3%. Taiwan
BE. renewables. 2%. USA
CPNG. ECOMMERCE. 2%. Korea
Questions
- Does it make sense to have such a PF in the first place?
- What is the ideal split between ETF and individual Stocks?
- are there alternate Tickers I should be considering?
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