“Geographical diversification simply means investing in international markets, and that helps improve the risk as well as the return possibilities of an overall portfolio. In India, we are exposed to one country, one currency opportunities and risks, per se. When we spread our investments across different countries, we tend to benefit from the global investment opportunities, hedge our risk, and move towards achieving better portfolio returns over a period of time. US govt bonds are safer assets, globally, and any investment for a short time – say, up to 1 year – would perfectly fit the bill of an investor who wants a high-quality, low-risk, low-volatility investment.”
In this episode of the Moneywise Podcast, Sirshendu Basu, Product Head, emphasizes the importance of diversifying beyond your geography and creating a USD asset to meet potential USD expenses.