stock portfolios: Build stock portfolios outside the index overseas – Blue Barrows

Mumbai: Diversify – whether at home or Stateside: That’s the prescription to make money in US stocks where valuations have reached stratospheric heights – as they have in Mumbai.

The Nasdaq 100 fund yielded 52% over the last one year. It was one of the most popular funds amongst Indian investors many of whom started investing overseas only recently.

“While there is a bubble in stocks like Tesla and Netflix there are a lot of individual stock opportunities available and investors can build a portfolio of companies with good fundamentals and fair valuations,” says Vikas Gupta, Chief Investment Strategist, Omniscience Capital.

Vikas believes investors could build a portfolio of 8-10 stocks and some of the stocks where there is value are the likes of Qualcomm, IBM, Micron Technologies, and Cirrus Logic. Among the non-technology stocks, he prefers Gamestop, Bed Bath and Beyond, Gap and Skechers.

Financial planners point out that there are growth opportunities in niche areas that can be accessed by investors.

“There are innovative companies in themes like biotech, clean energy, artificial intelligence and technology which Indian investors should access,” says Vikas Nanda, Chairman, Globalise, a digital wealth management platform to build global portfolios. Vikas recommends ETFs like Invesco Wilderhill Clean Energy ETF, First Trust Nasdaq Clean Edge Green Energy ETF, ARK Genomic Revolution ETF, GlobalX Robotics and Artificial Intelligence ETF.

Investors also continue to pour money in global giants that have earnings not just in the US but across the globe.

“We have seen Indian investors put money in stocks like Apple, Amazon, Facebook and ETFs such as Vanguard Total Stock Market Index Fund,” says Swastik Nigam, CEO, Winvesta, a platform that allows Indian investors to trade overseas.

Investors who cannot understand individual stocks can still continue to invest for the long term in the Nasdaq 100.

“Even though earnings are strong, valuations are high, and hence investors should use a staggered approach,” says Pratik Oswal, Head (Passive Funds), Motilal Oswal AMC.

Indian investors can invest up to $250,000 under the liberalised remittance scheme (LRS) every year. Several bank brokers, such as HDFC Bank, Kotak Mahindra, ICICI Bank and several others, allow Indians to invest in overseas stocks or ETFs. In addition there are platforms such as Stockal, Globalise, Winvesta and Vested through which investors can buy stocks or seek advisory and build a portfolio of companies.