True Diversification:

 "Don't put all eggs in one basket" is an age old adage emphasising diversification." Usually risk reduces when you diversify. Instead of investing in one stock - spread it across many and instead of investing in one asset invest across many. And instead of investing in one country it  becomes truly diversified if you invest across many countries.

Indian mutual funds have been adding value to investors for investing international markets. While this has been around for long, the taxation became favourable in current years budget. If you hold on to your international investments for more than 2 years, they qualify to be long term investments and the capital gains is taxed at 12.50% - the same as indian equities lint term capital gains.

From now on indian investors can explore international waters at their convenience.

The only limitation is - sometimes RBI limits international investing to manage its forex reserves. But that is ok. Whenever they allow, we can invest.

Here is an article on this topic published in our recent newsletter.