Why is Global Diversification critical at the current juncture?

In today’s interconnected world, the importance of global diversification cannot be overstated. Investors are navigating a landscape marked by geopolitical tensions, economic volatility, and sector concentration, factors that make a geographically diverse portfolio more essential than ever. Here’s why global diversification matters now:

1. Mitigating Geo-Political Risks

Heightened geopolitical uncertainties, from the U.S.-China trade frictions to conflicts in the Middle East, can have sudden and significant impacts on domestic markets. Investing globally provides an opportunity to reduce reliance on a single country or decade for economic growth.Diversifying globally gives portfolios the ability to weather and capitalize on shocks and opportunities.

2. Navigating Economic Volatility

While U.S. stocks, especially in the tech and AI sectors, have performed exceptionally well over the last few years, valuations are very high from a historical perspective. When investors concentrate too much on one market, it can leave them vulnerable to downturns in that particular sector. By investing in other marketplaces, including some of the emerging markets like India and some developed markets in Europe, investors will benefit from the wider growth trends while minimizing the volatility that each individual marketplace can create.

3.Optimizing Portfolio Performance

Global exposure is a basic aspect of contemporary portfolios; by integrating your domestic strengths with foreign opportunities, you improve your ability to maximize the risk/reward relationship and build greater returns. Exposure to many markets also reduces company-specific and market-specific volatility, creating a more stable portfolio through both bear and bull markets across multiple regions or countries.

4.Introducing the 4 GIFT City Outbound Funds

To help investors tap into the power of global diversification, investors can consider four thoughtfully curated GIFT City Outbound Funds.

These funds provide access to international equities and bonds, covering a wide range of sectors and geographies. Each fund is designed to:

Capture growth opportunities in global markets
Reduce concentration risk from domestic markets
Enhance long-term portfolio stability through strategic geographic allocation

Fund Name	Mirae Asset Global Allocation Fund		DSP Global Equity Fund		BNP Paribas US Small Cap Fund	Ashoka WhiteOak Global Emerging Markets Ex India GIFT Fund
Category	Non-Retail		Retail		Non-Retail	Non-Retail
Open /Close Ended	Close ended (Final Closing Sep’26)		Open ended		Open ended	Open ended
Geography	Developed and Emerging		US, Europe, Japan, China, South Korea, Canada		US	Emerging markets excluding India
Investment into (Asset)/Geographical exposure	Global ETFs and Offshore Funds in various jurisdictions (Developed and Emerging)		Global equity opportunities – US, Europe, Japan, China, South Korea, Canada. Index agnostic.		Smaller MarketCap equities in the United States	Global emerging market like China, Korea, Taiwan, South Asia, Middle East, LATAM, Africa and Eastern Europe companies excluding India
Structure/ Master Fund	Directly into assets – Global ETFs		Directly into assets- Actively managed stocks		Feeder- BNP Paribas US Small Cap (Luxembourg)	Feeder- Ashoka WhiteOak Capital Emerging Markets Ex India Fund
Tenure	3 years from final close		—		—	—
Benchmark	MSCI ACWI		MSCI ACWI		Russell 2000	MSCI EM
Top 5 Sector Holdings	Information technology, Communications, Financials, Industrials, Consumer Discretionary		Internet & Media, Consumer Discretionary, Financials, Consumer Services		Healthcare, Financials, Industrials, Information technology, Consumer	Consumer Discretionary, Technology, Financials, Industrials, Materials
Minimum Investment	USD 151,000		USD 5,000		USD 150,000	USD 150,000
Management fees	1.50% – 0.75%		1.75%		0.75%- 1.65%	0.5% to 1.30%
Taxation	Taxed at Fund level: LTCG (>24 months) – 12.5%, STCG – MMR
TCS	Under LRS, TCS @ 20% for transfer above Rs. 10 Lac
AUM Size	~ $ 12 – 15 mn	~ $ 12 mn		~ $ 1.9 bn		~ $ 15 mn

Performance Of The Strategies:

	USD Performance (Fund v Benchmark)
Scheme name	3m	6m	1y	2y	Benchmark	Performance as on
Mirae Asset Global Allocation Fund	-0.39%	–	–	–	MSCI ACWI Net Total Return	Dec’25
DSP Global Equity Fund	Flat since inception	–	–	–	MSCI ACWI Net Total Return	–
BNP Paribas US Small Cap Fund	5.91% / 5.99%		5.05% / 4.09%	21.26% / 19.20%	Russell 2000 (USD) RI	Nov’25
Ashoka WhiteOak Global Emerging Markets Ex India GIFT Fund	9.6% / 9.57%	20.66 / 23.64	35.79 / 36.92	21.15% / 22.49%	MSCI EM ex India	Nov’25

This communication is for informational purposes only and does not constitute an offer, solicitation, or recommendation to invest.The funds available only to accredited investors under IFSCA regulations. Investments in these Funds are subject to market risks, including currency risk and global market volatility. Investors should consult their financial and tax advisors before making any investment decisions. https://www.miraeassetmf.co.in/mirae-asset-global-allocation-fund, https://giftcity.dspim.com/, bnpparibas-am.lu/private-investor-retail-investor/fundsheet/equity/bnp-paribas-us-small-cap-classic-c-lu0823410997, https://www.whiteoakcapitalpartners.com/emp-ex-india.php

InCred Wealth and Investment Services Private Limited (“InCred Wealth”), is engaged in the business of distribution of third-party financial products and also acts as a referral agent of third-party financial products and services (“Investment Products”). InCred Wealth may earn fees, commissions from the manufacturers of Investment Products, and such manufacturers of Investment Products may also include group/associate companies of InCred Wealth.

InCred Wealth does NOT provide investment advisory services in any manner or form. InCred Wealth is AMFI registered Mutual Fund Distributor. Further, this document is not a research report or a research recommendation and does not constitute a personal recommendation. InCred Wealth may discuss with you (“Client/investor”) about investment products that are in line with your risk profile rating as maintained with us. Investment products are referred/ distributed by InCred Wealth on a non-discretionary and non-participation basis. Such discussion would be a service without any consideration by InCred Wealth to the Investor and the final investment decision shall always exclusively remain with the investor.

The information and opinions are not and should not be construed as an offer or solicitation to buy or sell any securities or make any investments. The Investment products discussed, and opinions expressed herein may not be suitable for all investors, who must make their own investment decisions, based on their own investment objective, financial positions and respective needs. This blog should not be taken as a substitution for the exercise of independent judgement by any recipient. Clients/ Investors should independently evaluate the investment, risks and carry out the required due diligence prior to making any investment decision. Investment Products are subject to market risks, including the possible loss of the principal amount invested. Past performance is not indicative of future results. The risks associated with the Investment products are mentioned in the product documentation supplied by the manufacturer of the Investment Products. Please read the relevant disclosure documents or Term Sheet or investment agreement or offer documents or prospectus or scheme information document as applicable carefully before investing. The views and investment outlook expressed by experts are their own, meant for informational purposes only and should not be construed as an investment advice or as views /opinions of InCred Wealth. This document may have statements / opinions / recommendations, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. Information and opinions contained in this document have been obtained from sources believed to be reliable, but no representation or warranty, expressed or implied, is made that such information is accurate or complete. InCred Wealth makes no representation and shall have no liability in any way arising to them or any other entity for any loss or damage, direct or indirect, arising from the use of this information. All third-party trademarks (including logos and icons) referenced here are for illustration purposes only and remain the property of their respective owners and constitute neither an endorsement nor a recommendation of those organizations/owners and not intended to imply, directly or indirectly, that those organizations endorse or have any affiliation with InCred Wealth.