Want to invest in foreign financial markets? Here's a quick guide

1. One way to diversify a portfolio is to put some money in overseas investments as foreign markets may respond differently to economic conditions than domestic markets.

2. International investing opens doors to promising industries and companies that are not present in the local markets.

3. Currency fluctuations can improve or cap the investment returns as a rise in value of the investment can be offset by a decline in the value of the foreign currency.


4. As per the RBI notification on the Liberalised Remittance Scheme (LRS), an Indian resident individual can invest up to $250,000 overseas per year.

5. One can invest through domestic brokers who have tie-ups with international brokers or directly through international brokers or through rupee denominated mutual funds that invest in international markets.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)