According to Niteen Dongare, Director & CEO of Anand Rathi International Ventures, artificial intelligence and semiconductors continue to offer the strongest long-term investment case for Indian investors looking to diversify globally. As reported by The Economic Times, while emerging opportunities such as space technology and defence are gaining attention, these two sectors remain the most compelling themes. The recent SpaceX IPO of $75 billion has generated tremendous interest among Indian investors, highlighting the potential of space technology as a future wealth creation theme. However, Dongare believes AI and semiconductors will continue to dominate for the next three to four years, with AI already proving its value across multiple sectors and governments now ready to invest in space technology for defence and national security considerations.
Dongare recommends that Indian investors allocate 20-30% of their portfolios to global markets through ETFs, direct stocks, and GIFT City funds to enhance diversification and returns. According to The Economic Times, this allocation provides access to unique themes not present in India while helping diversify risk by avoiding dependence on just one market. The Liberalised Remittance Scheme (LRS) allows Indian investors to invest up to $250,000 outside India, with three clear benefits: diversification, USD asset base creation, and USD appreciation benefits. Platforms through GIFT City are now available along with digital platforms for Indian residents, all of which are safe, digital, and regulated.
Recent performance data demonstrates the strong returns available in global markets, with Micron Technology growing from around ₹84 levels to ₹1,100 levels over the past year. As reported by The Economic Times, other AI and semiconductor-related companies including Nvidia, TSMC, and Hynix have delivered strong returns to investors. The dollar has appreciated 3-3.5% annually against the INR, with current levels around ₹94-95, creating additional benefits for Indian investors. Dongare's personal example shows how combining AI and semiconductor themes with USD appreciation can generate positive returns, having invested in Nvidia shares when the dollar was around ₹86 levels and exiting when it reached ₹91 levels.
For building global exposure, Dongare suggests a combination approach of global ETFs, select US stocks, and GIFT City funds. According to The Economic Times, global ETFs provide diversified exposure while allowing portfolio rebalancing, direct stock investments require substantial research, and GIFT City funds offer fund-of-funds investing in global ETFs. However, investors should be aware of regulatory implications including LRS limits, 180-day usage requirements, and US taxation on direct investments. The expert notes that while concentration risk exists in the AI sector with top companies delivering strong returns, investors should evaluate other companies in the AI ecosystem before investing.
Looking ahead, Dongare believes a well-diversified global portfolio makes the most sense for long-term investors seeking dollar-denominated assets. As reported by The Economic Times, while Indian equities remain attractive, combining Indian exposure with global diversification through US ETFs, US stocks, and international investments creates a balanced approach. The expert notes that Taiwan and South Korea should be on investors' radar for semiconductor and AI-related opportunities at lower costs, with companies like TSMC in Taiwan and Hynix in South Korea leading in chip manufacturing and advanced technologies. Despite current geopolitical uncertainties, the investment channels are now available through safe and regulated platforms, making global diversification accessible to Indian investors.
