A 50:50 India-US allocation strategy delivered approximately 1,080% returns from the 2008 market bottom through March 2026, according to research from Appreciate Wealth. This performance significantly outpaced an India-only portfolio, which generated roughly 750% returns during the same period. As reported by NDTV Profit, CEO Subho Moulik emphasized that this data demonstrates the value of geographic diversification in long-term investment strategies, noting that "the portfolio evidence, from our own research: a 50:50 India-US allocation returned roughly 1,080% from the 2008 market bottom through March 2026."
The Indian rupee has depreciated approximately 3.4 to 5% annually on a structural basis, depending on the measurement period, according to Appreciate Wealth research. This consistent currency weakness compounds dollar returns for Indian investors regardless of which US sector delivers those returns. The depreciation pattern has been consistent across emerging market currencies, making diversification a necessary strategy for investors in these regions. As Moulik explained, "That compounds dollar returns for an Indian investor regardless of which US sector delivers them."
The research supports the investment principle that diversification represents the 'only free lunch left' for investors, as noted by Nobel laureate Harry Markowitz. According to WealthMills Securities director Kranthi Bathini, the currency depreciation patterns across emerging markets make diversification essential for investors in these regions. The data suggests that re-engineering portfolios with an overseas outlook has consistently rewarded long-term investors through various market cycles. Moulik noted that "the decision to diversify also boils down to the wallet size of the investors," while emphasizing that both ETFs and direct stocks are accessible for systematic portfolio adjustment.
Recent market data highlights the divergence between US and Indian equity performance, with Wall Street significantly outperforming emerging markets. As of July 13, the S&P 500 is up nearly 21% over the past year, while the tech-heavy Nasdaq Composite has logged an even sharper 27% return in the same period. In contrast, India's benchmark index, the Nifty 50, is down by nearly 4% over the past 12 months. Moulik believes that "Wall Street's bull run still has significant steam left, and the likelihood of a correction could be restricted only to the hyper-rallying AI stocks." He emphasized that "global diversification is a portfolio decision, and the case for it runs through every sector, from healthcare to financials to industrials, most of which have nothing to do with this correction."
