Indian investors are rewriting the geography of their portfolios as global investing is no longer a fringe activity, but a structural component of household wealth creation.
According to the “How India Invests Globally – 2025” report by Vested Finance, the investment in overseas equity and debt witnessed a multi-fold increase to about $1.6 billion in FY25.
Indian investors have moved away from individual, brand-led stock picking towards ETF-led, portfolio-oriented global exposure.
According to Viram Shah, Founder & CEO, Vested Finance, global exposure helps spread that risk. It is not only about chasing higher returns. It is about building a more balanced portfolio across markets, sectors, and economic cycles.
The investment is a hedge in long run as it helps reduce single-country and currency concentration. In the short run, global markets can also fall together, so it is not a perfect hedge. But structurally, it improves portfolio resilience.
A shift from familiar brands
For most Indian investors, the global investing journey began with familiarity rather than strategy. Apple, Google, Tesla and Amazon were not just companies; they were brands embedded in daily life.
Vested’s report noted that early global portfolios were heavily concentrated in a handful of US technology stocks. This phase was less about diversification and more about participation.
Categories linked to AI, semiconductors, healthcare and consumer spending saw growing interest, the report added.
Rise of ETFs
Exchange Traded Funds are increasingly becoming the preferred instrument for Indian investors seeking global exposure. Broad-market ETFs tracking indices such as the S&P 500 and Nasdaq, along with thematic ETFs focused on technology, healthcare and artificial intelligence, are now central to many global portfolios, the report highlighted.
The transition from Apple stocks to ETF-led portfolios reflects a deeper transformation in Indian household finance.
ETFs appeal because they simplify complexity. The report pointed out that global ETFs are being positioned as international equivalents of mutual funds, an asset class Indian investors already understand well due to decades of domestic mutual fund penetration.
Over 80 per cent of investors have an ETF allotcation in the portfolio, the report read.
Currency dynamics
Another driver of this evolution is a growing awareness of currency dynamics. Indian investors are increasingly conscious that global investing is not just about foreign stocks, but also about exposure to the US dollar. Rupee depreciation has made global assets particularly attractive, as dollar-denominated investments can enhance returns in rupee terms even when underlying markets are relatively stable.
Vested’s report suggested that investors are beginning to see global exposure as a hedge against long-term currency risk, not merely a bet on overseas growth. This reframing has strengthened the case for systematic, long-term global allocations rather than opportunistic trades.
When asked if global exposure should be adjusted during rupee appreciation cycles, Shah stressed that global investing works best when treated as a long-term allocation, not adjusted based on currency moves. “Currency cycles are difficult to predict and often reverse quickly.
“If the rupee strengthens and global assets underperform in INR terms, that can actually be a disciplined opportunity to rebalance, not a reason to exit. The only time adjustment makes sense is when someone has a near-term foreign currency expense,” he said.
Retail & HNIs participation
According to the Vested Finance’s report, global investing is increasingly being adopted by both retail investors and high-net-worth individuals (HNIs), with retail investors comprising 82 per cent of participants and HNIs 18 per cent, creating a broad and diversified investor base.
While retail investors typically begin with smaller, consistent investments (average initial deposit of $1,634), HNIs start with much larger allocations (averaging $23,807), reflecting more intentional portfolio positioning. Despite the difference in scale, both groups show similar long-term behavior.
Portfolio construction is also broadly aligned, with stocks forming the majority of holdings for both segments, underscoring that global investing is becoming a deliberate, ongoing strategy across investor types.
Gender-based investment behaviour
Although the investments tend to come from all parts of the country, with 48 per cent of the investors below the age of 35, men dominate in terms of participation (at 84 per cent) and transaction volumes, driven by higher risk appetite and greater willingness to experiment. Women, fewer at 16 per cent, tend to prefer diversified instruments, trade less frequently and maintain longer holding periods.