Stock Portfolio: Build a stock portfolio out of indexes overseas


MUMBAI: Diversify – whether at home or statesside: This is the way to make money in US stocks where valuations have reached stratospheric highs – as they have Mumbai,

The Nasdaq 100 Fund has given a return of 52% in the last one year. It was one of the most popular funds among Indian investors, many of whom had recently started investing abroad.

“While there is a bubble in stocks like Tesla and Netflix, there are many individual stock opportunities available and investors can build a portfolio of companies with sound fundamentals and fair valuations,” said Vikas Gupta, Chief Investment Strategist, Omniscience Capital.

Vikas believes that investors can build a portfolio of 8-10 stocks and have few stocks which include the likes of Qualcomm, IBM, Micron Technologies and Cirrus Logic. Among non-technology stocks, he likes Gamestop, Bed Bath & Beyond, Gap and Skechers.

Financial planners point out that there are growth opportunities in niche areas that can be tapped by investors.

“There are innovative companies in disciplines such as biotech, clean energy, artificial intelligence and technology that Indian investors should have access to,” says Vikas Nanda, chairman of Globalize, a digital wealth management platform to build a global portfolio. Growth recommended ETFs such as the Invesco Wilderhill Clean Energy ETF, First Trust Nasdaq Clean Edge Green Energy ETF, ARK Genomic Revolution ETF, GlobalX Robotics and Artificial Intelligence ETF.

Investors continue to pour money into the earning global giants not only in the US but around the world.

“We have seen Indian investors pour money into stocks like Apple, Amazon, Facebook and ETFs like Vanguard Total Stock Market Index Fund,” said Swastik Nigam, CEO, Winvesta, a platform that allows Indian investors to trade overseas .

Investors who do not understand individual stocks can still continue to invest in the Nasdaq 100 for the long term.

Prateek Oswal, Head, Passive Funds, Motilal Oswal AMC, says, “Though earnings are strong, valuations are high, so investors should go for a surprise approach.

Indian investors can invest up to $250,000 per year under the Liberalized Remittance Scheme (LRS). Many bank brokers, such as HDFC Bank, Kotak Mahindra, ICICI Bank and many others, allow Indians to invest in foreign stocks or ETFs. Apart from this, there are platforms like Stockl, Globalize, Winvesta and Vested through which investors can buy stocks or take advice and build a portfolio of companies.



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