The Market Podcast | Kunj Bansal demystifies global investing; allocate 10% of funds

Do you also fancy investing in global funds? Well, the good news is that many brokerage houses have opened their services for global investing, but investors at the same time should remain cautious because it is only NASDAQ which has performed, explains Kunj Bansal, CIO, Karvy Capital in ‘The Market Podcast’ with Moneycontrol.

“If we look at the YTD numbers for global markets – within US Dow Jones gave a flattish return, DAX is also marginally negative, Nikkei fell more than 1%, FTSE is down more than 22 percent and so is the Hong Kong’s HSI is down 16%, Brazil’s Bovespa down 18% and what is up is only NASDAQ, up 24%,” explains Bansal.

“The point I am making is that when investors are investing in global funds it is only the NASDAQ which has done well. When investors think of putting money in global funds they should be very clear what they are targeting,” says Bansal.

Looking forward, considering the facility is available for Indians, investors should take some exposure towards global funds as part of the asset allocation strategy, recommends Bansal.

When asked what should be the percentage of the portfolio, Bansal is of the view that these funds will still come under the risky assets, I recommend portfolio allocation of not more than 10%.

(Tune in to the podcast for more)