Why Are International Stocks Attractive?

Should I be buying US stocks directly? Am I missing out on Meta, Apple, or Tesla?

If you’ve spent five minutes on social media, you’ve probably felt this pressure. Investing directly in foreign stocks sounds sophisticated, globally diversified, and frankly, pretty cool. You see those famous names pop up in your portfolio statement, and it feels like you’ve finally made it.

But the question remains, why even invest in international stocks?

The Truth About Investing Local

Look, we can give you a very technical, suit-boot answer about global diversification. But let’s start with a reality check.

In India alone, there are over 7,500 listed companies. Can you analyse even 10% of them, end-to-end? Chances are, you haven't even heard the names of 90% of them. The Indian market is vast, deep, and still relatively untapped by most investors.

Yet, you have an advantage: you know this country. 

You understand the local circumstances, the political environment, the progress, and the basic needs of the people here. That local knowledge is an immense advantage that puts you in a much better position to make good investment decisions than trying to understand the intricacies of a company based in a country you only visit for holidays.

The Only Good Reason

Some smart people will argue that you should diversify against country risk. They have a point. If there’s political instability or a major economic problem in India, having some money hedged outside ensures your entire portfolio isn't affected.

So, the goal is hedging, right? Then, why make your life complicated by buying direct international stocks?

Trying to buy a Tesla share directly means dealing with regulatory grey areas. Many of the most reputable Indian brokers don't offer direct international buying facilities. Why? Because the tax, fund transfers, and legal compliance are messy. A broker here has to tie up with a virtual account there. It's a whole lot of headache for very little practical gain. They don’t want to take the reputational risk, and neither should you.

The Simple, Boring Solution

If your goal is to hedge against country risk, there are simpler options that won't give you a legal headache:

1. Go Global with Gold: Gold is a commodity whose price is decided globally. It acts as an excellent hedge against political or economic instability in any single country. You can easily access it through Gold ETFs.
2. Use Funds of Funds (FOFs): Several Indian mutual funds offer Funds of Funds that invest in international stocks and ETFs. These funds handle all the hassle-the account opening, the fund transfer, the compliance, and the taxation-on your behalf. You get the international exposure you want without the accompanying stress.

We don't understand the politics, the accounting standards, or the disclosure formats of US companies. While seeing Apple in your portfolio looks cool, it just “looks” cool. It won't necessarily make you richer than applying the same process and discipline to Indian stocks.

Stay Away from the Fancy Stuff

There's a constant cycle of new financial fads. A few years ago, it was fantasy gaming. Then came Cryptos, and now the focus is on US stocks or "Buy Now Pay Later" apps.

You'll see them promoted everywhere-on TV, in IPL ads, and by influencers. Why? Because these are often the products that have received massive VC funding, and those startups are under enormous pressure to grow quickly. They create a strong narrative.

More visibility doesn’t mean it’s more correct. The things that are promoted the most are often the most complicated or the most messed up.

Finance and investment should be boring.

If you want a thrill, go to an amusement park, watch Netflix, or play video games. Entertainment is cheap; you can get a thrill for a couple of thousand rupees. Don't look for that thrill in your finances. You will suffer a loss.

Think of your financial instruments as medicine; they are there to fix a problem or a loophole in your long-term plan. They are not for fun. Keep it simple: you need insurance, NPS/PF for retirement, 2 or 3 solid mutual funds for goal planning, and maybe some direct stocks if you have capital left over. That's it.

The more you stay away from fancy products, the safer and wealthier you will be in the long run.

Final Word,

Don’t look for entertainment in finance. The moment you start enjoying the process too much, that’s your signal that you’re doing something wrong. Your portfolio isn't a video game; it's a long-term plan built on discipline and consistency.

Stick to what you know: your home market. Use the simple, regulated tools (Gold, FOFs, ETFs) for your necessary diversification. Say no to the shiny, complicated products being marketed to you. Your goal is to have the coolest-looking statement, but one that’s safe and reliable.