Don't retreat to home turf due to US market correction, experts advise

Benefits like low correlation, currency hedge, and access to unique businesses remain intact

The Nifty 50 has declined 9.1 per cent year-to-date (YTD). While painful, the hit is much lower than what key indices in the United States (US) have suffered. The S&P 500 is down 21.6 per cent. The NASDAQ-100 has fared even worse, declining 30.8 per cent. The US market’s poorer performance YTD could lead many Indian investors to conclude that it is better to stick to one’s home turf. Experts warn against doing so.

Avoid recency bias

Longer-term portfolio allocation decisions, experts say, should not be arrived at based on short-term data. “Don’t let recency bias creep into your investment