This article first appeared on Valuewalk. Introduction “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable […]
Over the last three decades, Indian equity markets generated strong investment returns with local currency returns of nearly 15%. In this article, we show that adding a global equity allocation resulted in lower portfolio risk. Additionally, against the commonly held perception, the improvement in risk did not come at the expense of investment returns.
In this article, I provide evidence that GDP growth rates do not correlated well with investment returns while refuting the claim of a prominent investment manager from India that GDP growth rates are somehow directly linked with investment returns.