Why Every Portfolio Needs a Mix of NIFTY 50 and International ETFs
Investing in a single market may limit your growth potential. A smart strategy is to diversify between NIFTY 50 ETFs and International ETFs. But why is this mix essential for every investor? Let’s break it down in simple terms!
What Are NIFTY 50 ETFs and International ETFs?
✅ NIFTY 50 ETFs – These funds track India’s top 50 companies and provide stable, long-term growth.
✅ International ETFs – These funds invest in global markets like the U.S., Europe, and emerging economies, reducing country-specific risks.
📌 Example: If you had invested ₹1 lakh in a NIFTY 50 ETF in 2013, it would have grown to around ₹3.5 lakh today (assuming a 12% CAGR). But if you had also invested in an S&P 500 ETF, your portfolio would have been even stronger!
Why Should You Combine NIFTY 50 and International ETFs?
Reduces Risk with Global Diversification
- The Indian market is growing, but global events can impact returns.
- Investing in both domestic (NIFTY 50) and international ETFs ensures that a downturn in one market doesn’t hurt your entire portfolio.
Balances Currency Fluctuations
- If the rupee depreciates against the dollar, investments in U.S. ETFs (like the Nasdaq 100 ETF) benefit.
- This protects your portfolio from currency risk.
Exposure to Global Giants Like Apple, Microsoft & Tesla
- While NIFTY 50 focuses on India’s top firms (Reliance, TCS, Infosys), global ETFs give access to companies like Apple, Google, and Amazon.
- This ensures diversified sector exposure across technology, healthcare, and finance.
Boosts Long-Term Growth Potential
- The NIFTY 50 has delivered 12-15% CAGR, while global markets (like S&P 500) have seen 10-12% CAGR.
- A mix of both enhances long-term wealth creation.
How to Invest in NIFTY 50 and International ETFs?
📌 Index Long Term Strategy (ILTS) by Finideas is an excellent approach for long-term ETF investments.
Benefits of ILTS:
✅ Low-cost, tax-efficient strategy
✅ Invests in top-performing NIFTY 50 and global ETFs
✅ Eliminates emotional decision-making
✅ Ideal for wealth creation over 10+ years
📌 Example: A ₹10 lakh investment in a 50-50 mix of NIFTY 50 and S&P 500 ETFs 10 years ago would be worth ₹35-40 lakh today, showing the power of global diversification!
What’s Your Take?
Would you prefer only Indian ETFs, or do you see value in adding global exposure? Comment below! 🚀
Happy Investing!
This article is for education purpose only. Kindly consult with your financial advisor before doing any kind of investment.