Indian investors are turning to overseas markets due to the lack of AI themes and low returns in the domestic market.

       For a long time, Indian investors have almost completely focused on the domestic market, but now they are increasingly turning their attention overseas.

　　More and more investors are transferring their funds overseas in search of diversified investments. Previously, the relative returns continued to weaken, and foreign funds continuously flowed out of the local stock market, causing the exchange rate of the Indian rupee to fall to a record low.

　　According to data from the Reserve Bank of India, in the 11 months ending in February this year, Indian investors invested more than $2.2 billion in overseas stocks and bonds, a 60% increase compared with the same period last year. Meanwhile, data from the Association of Mutual Funds in India shows that the assets of global-linked funds managed by local fund managers reached a record $4 billion.

　　Local investors' views on their investment portfolios are changing. The Indian stock market accounts for only about 3% of the global stock market, and its stock price movements are not always in sync with the rest of the world. Therefore, overseas investment has become a simple way to diversify risks. The depreciation of the rupee makes overseas assets more attractive because overseas returns will increase due to exchange rate fluctuations, and more convenient investment channels have also attracted more investors.

　　This shift is also affected by the performance of local stocks. In the past year, the performance of the MSCI India Index has lagged behind the MSCI Emerging Markets Index by nearly 50%, even though the index has rebounded from its low point in March. This is mainly due to the slowdown in earnings growth and limited exposure to themes such as semiconductors. Meanwhile, the markets in Taiwan and South Korea have reached new highs.

　　Abhishek Dadhich, 38, said, "I want to be where the real innovation is happening." He is a technology practitioner from Pune, India, and has been investing in US stocks since 2023. He said that his understanding of technology has helped his investment more than triple to over $300,000, exceeding his expectations.

　　The overseas appeal stems from the deficiencies in the domestic market. In India's $5 trillion stock market, themes such as artificial intelligence (AI), memory chips, and data center infrastructure are still limited, and these are the main drivers of the market upswings in markets such as South Korea and Taiwan.

　　"The benefits of diversified investment are real," because it allows investors to access a wide range of technology stocks. Sandipan Roy, the chief investment officer of Motilal Oswal Private Wealth, which manages $21 billion in assets, said, "Investors have become vigilant about the adverse factors that have been hitting the Indian market continuously." (Source: Sina Finance)