ETMarkets Smart Talk | Direct stocks are not the answer for global investing; fund of funds makes more sense: Rahul Jain
Rahul Jain, the President & Head – Wealth Management at Nuvama, suggests that for most investors, buying individual stocks directly is not the best way to gain exposure to global markets. He argues that managing a portfolio of international companies requires significant research and carries high risk. Instead, he advocates for a simpler approach using passive strategies and fund of funds. These investment vehicles pool money from many investors to buy a basket of assets, which helps spread out risk and reduces the burden of making individual stock or country calls.
This approach matters to investors because it offers a more efficient way to diversify. By investing in a fund of funds, you gain access to a wide range of markets without needing deep expertise in each one. It is designed to lower volatility and provide steady returns over the long term. For retail investors, this method removes the complexity of navigating foreign markets, allowing them to participate in global growth with a lower level of effort and risk.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
