3 Top Reasons To Give Your Portfolio a Global Edge

Did you know India accounts for only ~3%i of the global market capitalization. This means that as an investor, if you are only investing in domestic markets, you are missing out on investing in a majority of businesses and growth themes in the global markets.

Also, when it comes to diversification, restricting yourself to only Indian markets increases your portfolio’s concentration risk. In contrast, adding global exposure to your portfolio can help you achieve true diversification.

Here are 3 key reasons why you should invest globally:

1. Markets have varying risk levels:

Different markets have different risk levels in that developed markets have a lower risk compared to emerging markets. Further, when we seek to lower our risk, we aim to achieve a low correlation among our investments. Correlation is a measure that indicates whether and how strongly pairs of variables are related. In simple words, a high correlation between two markets indicates that they tend to move in the same direction, and vice versa. Thus, with India markets having low correlation with developed markets, it results in reduced risk.

2. Scope for better risk-adjusted returns:

A good investment portfolio aims to achieve maximum returns for minimum risk. There will always be some trade-off between risk and reward. Therefore, we must seek to enhance our risk-adjusted returns. Risk-adjusted returns refer to how much return your investment makes relative to the amount of risk you take. The more globally diversified your portfolio is, the higher the scope for better risk-adjusted returns.

3. Access to global themes and sunrise sectors:

While sectors such as electric vehicles and renewables are still in nascent stages in India, world markets are home to innovative and fast-growing companies and sectors like these. Most of these themes are either limited or not available in India to invest in. Through global investing, you can get access to these global giants and future leaders that are leading the new economy.

Convinced about giving your portfolio the global edge? Investing globally is not as complicated as it seems. A convenient way to do so is through the Axis Global Innovation Fund of Fund, which invests in Schroder Internation Selection Fund Global Disruption, an international fund. This fund invests in global innovative companies with the aim of creating long-term wealth for investors.

Invest in Axis Global Innovation Fund of Fund to give your portfolio the shine of innovation and global exposure.

The NFO is open May 10th to 21st, 2021.

To know more, visit / or contact your Mutual Fund Distributor.

Past performance may or may not be sustained in the future.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to ` 1 Lakh).
Trustee: Axis Mutual Fund Trustee Ltd.
Investment Manager: Axis Asset Management Co. Ltd. (the AMC).
Investors will be bearing the recurring expenses of the scheme in addition to the expenses of other schemes in which Fund of Funds scheme makes investment.
The Scheme shall invest in Schroder International Selection Fund Global Disruption (‘Underlying Fund’) and shall not hold stocks directly in its portfolio. The Underlying fund consist of diversified portfolio of foreign securities and may or may not choose to hold stocks mentioned above.
Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.
This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

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