Why a 70:30 India-Global Portfolio Strategy Makes Sense Today

For years, Indian investors have enjoyed strong returns from their domestic stock markets. However, the global investment landscape is shifting. As major international markets begin to outperform India, financial experts are urging investors to look beyond their borders. Subho Moulik, a noted investment strategist, is decoding a compelling approach: allocating 70% of an equity portfolio to India and 30% to global markets.

This balanced strategy is not about abandoning the growth story of India. Instead, it is a smart move to build a more resilient and opportunity-rich investment plan. The core idea is to harness India’s powerful domestic growth while simultaneously participating in the world’s most innovative sectors.

The Urgent Need for Diversification

Putting all your money in one market, even a fast-growing one like India, carries significant risk. This is known as concentration risk. If the Indian market faces a downturn or a period of slow growth, a portfolio focused only on India would suffer. By diversifying with a 30% allocation to global equities, investors can smooth out their returns over time.

This mix typically improves what experts call “risk-adjusted returns.” This means an investor can potentially achieve similar or better returns while experiencing less volatility and lower overall risk. It is a fundamental principle of prudent, long-term investing that is gaining new urgency as global dynamics change.

Accessing Unmatched Global Growth Themes

One of the most powerful reasons for the 70:30 split is access. While India excels in many areas, some of the most transformative technological revolutions are being led by companies listed on foreign exchanges. A pure India portfolio may miss direct exposure to these mega-trends.

Subho Moulik highlights key long-term themes like artificial intelligence (AI), where global giants are making unprecedented breakthroughs. The defense sector in countries like the United States is another area with massive, sustained investment. Future technologies like quantum computing, which could redefine industries, are also being pioneered by specialized firms abroad.

By allocating a portion to global funds or stocks, Indian investors can buy a stake in these defining trends. This ensures their portfolio grows not just with the Indian economy, but with the global economy’s most cutting-edge advancements.

A Practical Strategy for Changing Times

The 70:30 model is a clear and actionable framework. It acknowledges that India remains the primary growth engine for an Indian investor, hence the larger 70% share. This portion captures the benefits of demographic dividends, infrastructure development, and rising domestic consumption.

The 30% international allocation acts as both a hedge and a growth enhancer. When global markets outperform, this part of the portfolio boosts overall returns. When Indian markets are soaring, the global portion still provides valuable diversification, reducing the portfolio’s vulnerability to local shocks.

For general investors, implementing this strategy has become simpler than ever. They can consider mutual funds that invest in global companies or exchange-traded funds (ETFs) that track international indices. This allows for diversification without the need to analyze individual foreign stocks.

In a world where change is the only constant, a rigid investment approach can be risky. The 70:30 India-global portfolio offers a balanced path. It allows investors to stay committed to India’s promising future while wisely spreading risk and planting seeds in the fertile ground of worldwide innovation. As Subho Moulik suggests, this blend may be the key to building durable wealth in a changing world.