Dear Manhar,
I could not quite follow your reasoning for explaining away rupee depreciation. One point is that if you hold Indian companies which are mostly export oriented, then you are also hedging against rupee depreciation to some extent. But, this still leaves your PF exposed to india-specific geographic risks.
While the overall market in developed countries does not grow quite as fast, individual stocks definitely do. Of course, it is incredibly hard to be able to pick out such star performers. Furthermore, some cutting edge developments like genetics, semicon, 5G/IoT, electric mobility etc. does not have a good enough breadth in indian companies. The individual stocks portion tries to get exposure to this aspect.
Thus, the component invested in index ETFs like nasdaq 100 will likely not grow as fast. The long term growth is only about 7 to 10% in dollar terms for nasdaq 100 (last decade is an exception). Here the motivation is diversification from India-specific concentration risks and depreciation hedge.
Both of these components will each be around 10% of my net worth. So 80% of my networth will still be indian assets (MFs and individual stocks).
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