Global diversification matters more than ever, says Marcellus’ Saurabh Mukherjea
What’s the one actionable takeaway for investors?
There are really three. Diversify globally, question the old wisdom of investing purely in large government PSUs, local real estate developers, metals and mining, or telecom, simply because you happen to live in India. This is a form of home-country bias that no longer makes sense. In India, a tilt towards essential public services now delivered by the private sector, like hospitals, healthcare, diagnostics, and education, as these are the areas that will increasingly substitute for what the state used to provide. Prepare for a weaker rupee, and benefit from it by investing in manufacturing exporters. The old assumption that India can’t compete in manufacturing exports is being questioned. We believe India has become genuinely competitive, and the old rulebook no longer applies. As a rule of thumb, allocate at least a third of your equity portfolio to global investments.
