Indian investors missing 96% global stocks. Here is how and where to invest

Indian investors are slowly discovering that the world is much bigger than the domestic key indices. With the country accounting for just about 4% of global market capitalisation, a growing number of retail investors are looking overseas to capture opportunities in technology, healthcare, clean energy and other megatrends. Data shows that some global names, such as NVIDIA Corporation, Vertiv Holdings, and Sterling Infrastructure Inc., have delivered returns of up to 2,000% to investors over the past five years, and the list is not limited to these. Therefore, platforms that simplify global investing are seeing rapid adoption. In an interaction with Vested Finance, founder and CEO Viram Shah explains why going global is no longer optional for a well-balanced portfolio. Edited excerpts:

BT: For retail investors, will investing in markets beyond India bring any advantage, given there are enough diversification options in India?

Shah: Absolutely. India offers a lot of good investment opportunities, no doubt. But global investing adds a whole new dimension to diversification that just isn’t possible if you stay within one market.

For example, India makes up only about 4% of global market capitalisation. That means if you are only investing in India, you’re missing out on 96% of the world’s listed companies including global leaders in technology, healthcare, clean energy, and consumer brands that don’t exist in the Indian market.

Investing globally gives you access to different economies, currencies, and industries that behave differently from India. This helps reduce country-specific risk and smooths out the volatility in your portfolio. You’re not tied to just one economic or policy cycle.

There’s also the currency aspect. Over the long term, the rupee has tended to depreciate against the US dollar. So, by holding part of your portfolio in dollar-denominated assets, you naturally hedge against that currency risk. And beyond all that, global investing lets you participate in megatrends like AI, semiconductors, biotech which are often being led by companies outside India.

So, it’s not about replacing Indian investments rather more about complementing them. A well-balanced portfolio today needs to be both local and global.

BT: If large players like Zerodha enter the overseas investing space, how do you see it impacting your business?

Shah: Honestly, I see it as a positive. When a large player shows interest in global investing, it’s a strong validation of the space we’ve been building in for years. It means that more and more investors are waking up to the importance of global diversification, and that’s great for the entire ecosystem.

The way we look at it, competition helps expand the market. Today, only a small percentage of domestic investors actually allocate money overseas. So if bigger platforms enter and educate more users, the pie grows. It doesn’t shrink.

That said, we’ve been focused on global investing since day one. It’s not a side offering for us but the core of what we do. We have spent years building the infrastructure, compliance, and investor experience specifically around overseas investing for Indians. That includes everything from smooth LRS transfers, curated portfolios, tax-ready reports, and now Global Funds, which is something no one else in India is offering right now.

So yes, more players will enter, and that’s natural as the space matures. But we’ll continue to differentiate with our range of offerings, product innovation, and focus on making global investing effortless for Indian investors.

BT: How has been the growth in direct foreign investments from India? What is the outlook for the next couple of years?

Shah: Between FY22 and FY23, growth in new users was relatively flat at around 8%. The following year, between FY23 and FY24, new user growth accelerated to nearly 50%. In the current year, FY24 to FY25, that momentum has continued, with new users up about 49% so far and are expected to close the year with 60–65% growth.

Deposits have shown an even stronger trend. Between FY22 and FY23, growth was in single digits, but it picked up sharply to about 68% in FY23-24. For FY24-25, deposits are up nearly 160%, reflecting strong investor confidence and growing ticket size.

Trading volumes have also maintained a steady upward trajectory. They grew about 65% between FY22 and FY23, doubled (close to 105%) between FY23 and FY24, and are on track for another 100% increase this year.

BT: AI is the buzzword right now on Wall Street. Apart from that, what are the other sectors that can be good investments for Indian investors?

Shah: Yes, AI has been at the centre of the global investment story, and for good reasons. But there are other really interesting sectors that Indian investors should keep an eye on.

One big one is semiconductors. AI can’t function without chips, and the demand for advanced semiconductors is booming. Companies across the US, Taiwan, South Korea, and even parts of Europe are leading the charge here. That sector has long-term tailwinds behind it.

Clean energy is another powerful theme. There’s a global push toward decarbonisation, and that’s driving growth in solar, wind, EVs, and battery storage. It’s not just about being sustainable – it’s also a massive economic opportunity as countries invest heavily in energy transitions.

Healthcare and biotech are also very promising. Innovation in gene therapy, diagnostics, and personalised medicine is accelerating. Many of the world’s top healthcare companies are based in the US and Europe, and they offer access to long-term, stable growth.

And finally, we’re seeing strong potential in emerging market consumer stories—especially in regions like Southeast Asia and Latin America. Rising middle classes, digitisation, and infrastructure development make these economies very interesting over the next 5-10 years.

So while AI gets the headlines, there are multiple global themes that Indian investors can tap into especially through thematic funds or ETFs that simplify access to these sectors.

BT: Beyond US markets, what are some of the key markets where Indians can invest? What are the ways one can invest there?

Shah: While the US is the most popular market because it’s home to companies like Apple, Amazon, Nvidia there’s a lot more to global investing. Regions like Europe, Japan, and even parts of Southeast Asia offer great opportunities.

Europe has strong players in sectors like luxury, automotive, and healthcare. Japan is home to some of the world’s leaders in robotics and manufacturing. Even emerging markets like Brazil, Indonesia, or Vietnam have their own growth stories driven by rising consumption and digital adoption.

Now, in terms of how to invest, that’s where we’ve made it simple. With our Global Funds offering, you can access a wide range of mutual funds that target these specific regions whether it’s a Europe equity fund, a Japan strategy, or an emerging market mix. And you can start with just $10, fully online, without needing to open separate international brokerage accounts.

Apart from that, we also offer US-listed ETFs that give exposure to global themes and markets. For example, you could invest in an ETF that tracks Chinese tech, European clean energy, or global healthcare.

So yes, there’s a world beyond the US literally and we’re focused on making it easy for Indian investors to explore it.