New Delhi, May 31 -- It is becoming increasingly common to hear investment advisors and wealth managers recommend investing beyond domestic markets. The argument is not against India's long-term growth story, but against concentration and currency risks.

The rupee crossed 95.78 against the dollar on 28 May 2026, marking a roughly 12% decline in a year. For an Indian investor earning 12% in equities over the same period, the dollar-adjusted return was close to zero. That is the risk of investing entirely in one currency.

India's mutual fund industry managed assets worth over Rs.81 lakh crore in April 2026. Yet international funds accounted for only around Rs.85,000 crore, or barely 1% of industry assets, despite India representing only 3...