New Delhi, May 4 -- Indian equities merit higher foreign allocation due to strong structural fundamentals, said Ramneek Kundra, chief investment officer at DSP Pension Fund Managers. However, elevated valuations remain a concern, he told Mint in an interview.

If India remains expensive, should investors consider global opportunities? Kundra said home-country bias is common, but concentrating on a single market does increase risk.

Kundra said even though National Pension System (NPS) is a great product, its low fund management fee also limits pension funds' ability to invest in marketing and attract distributors.

The business and the stock have to be separated. India as a business looks great. But the stock itself, the valuation of our ...