Why International?
I have tried to structure my thoughts in the following 4 points. Let me know your thoughts. 1. The only reason we invest in Indian equity is because we were born here. Let that sink in. We never made a conscious choice. And it has never been easy or cheap to invest outside India. Indian equity was the only convenient option for us. But now it is neither hard nor costly. You have Motilal Oswal S&P fund which allow you to own S&P 500 without any money lost in forex markup or 'transaction fees' 2. India is just 3% of world's GDP. Investing in India is very much like being a frog inside a well. India’s largest company by market cap, Reliance Industries, would be #74 in a list of US companies. 3. Correlation between Nifty 50 and S&P 500 long term returns is actually negative. Hence investing in S&P 500 gives you good diversification. You also get extra benefit from USD INR currency movement. 4. Look at the S&P 500 list of companies and then look at Nifty 50