Zerodha Educate The need for global diversification with Pratik Oswal
One of the most prevalent yet ignored biases among investors is called the home country bias - the tendency of investors to invest all or most of their money in the country they live in. To give you some context, India is just 2% of the world marketcap - meaning a vast majority of the investment opportunities lie outside India. And old economy stocks dominate the Indian indices. We don't have the Indian listed equivalent of Apple, Google, Netflix, Amazon, Facebook etc, the biggest and most innovative tech companies in the world.
We've all been taught that we should diversify our portfolios across asset classes such as stocks, bonds, gold, real estate, etc. But In this wide-ranging conversation, Pratik Oswal, Head of Passive Funds at Motilal Oswal AMC talks to Prateek Singh (Founder of LearnApp) about:
- What is global diversification and why it is needed
- The opportunities and risks of global diversification
- What does depreciation of rupee means and how it adds to returns
- How to allocate to global funds in a portfolio
- Comparing the S&P 500 and the Nasdaq 100 index funds
And a whole lot more...
Note: We had recorded this podcast with Pratik before Motilal Had received the approval for launching the Motilal Oswal S&P500 Index fund. We recorded an extended conversation specifically about the new fund from the 41: 50 mark.
Please enjoy this conversation with Pratik Oswal of Motilal AMC.
We've also launched a Zerodha Paathshala, a Hindi Podcast. You can check out the latest conversations here.