Why Parag Parikh Global Investing Is a Smart Global Wealth Strategy for Indian Investors
Parag Parikh Global Investing Explained Clearly
Parag Parikh Global Investing is a Portfolio Management Services (PMS) strategy designed for Resident Indian investors who want direct exposure to global equities. The strategy is managed by PPFAS Alternate Asset Managers IFSC Private Limited, a wholly owned subsidiary of Parag Parikh Financial Advisory Services Limited, operating from GIFT City under IFSC regulations.
Unlike international mutual funds or feeder funds, this strategy enables investors to own global stocks directly in their own name, primarily across developed markets such as the United States, Europe, and Japan. The base currency of the portfolio is USD, making it a natural hedge against rupee depreciation.
At its core, Parag Parikh Global Investing follows a conservative value-investing philosophy, inspired by long-term principles rather than short-term market trends.
Why Global Investing Matters for Indian Investors
India represents less than 5% of global market capitalization, while the US alone accounts for nearly half of the world’s equity markets. Relying only on domestic equities means missing out on global innovation, consumption trends, and resilient business models.
Parag Parikh Global Investing addresses this gap by offering:
- Exposure to transformative global themes such as AI, cloud computing, semiconductors, EVs, and genomics
- Access to global consumer brands like luxury, technology, aviation, and healthcare leaders
- Geographical diversification, reducing dependency on a single economy
- Currency diversification, helping preserve long-term purchasing power
- Lower overall portfolio volatility when combined with Indian equities
Historically, global markets have often outperformed Indian indices during domestic drawdowns, improving risk-adjusted returns over full market cycles.
Investment Philosophy Behind Parag Parikh Global Investing
The strategy follows a bottom-up, long-term value investing approach, deeply rooted in the principles of Benjamin Graham and Warren Buffett.
Key pillars of the philosophy include:
- Partnering with minority-shareholder-friendly managements
- Investing in cash-generating, low-debt businesses
- Avoiding overpayment and buying with a margin of safety
- Focusing on companies with strong economic moats
- Treating stocks as ownership in businesses, not trading instruments
This discipline ensures that portfolio decisions are rational, valuation-driven, and patient, rather than reactive to market noise.
How the Parag Parikh Global Investing Strategy Is Built
The investment process is structured and repeatable:
| Step | What Happens |
|---|---|
| Screening | Identifying high-quality global businesses |
| Research | Studying sectors, competitors, and business history |
| Valuation | Comparing current prices with intrinsic value |
| Portfolio Construction | Ensuring sectoral and geographical diversification |
| Monitoring | Opportunistic buying and selling based on valuation |
The portfolio typically holds 15–25 carefully selected global stocks, ensuring focus without concentration risk.
Asset Allocation and Risk Profile
According to disclosures, the asset allocation framework is:
| Asset Class | Allocation Range | Risk Level |
|---|---|---|
| Equity & Equity-related Instruments | 70% – 100% | Medium to High |
| Debt & Money Market Instruments | 0% – 30% | Low to Medium |
This makes Parag Parikh Global Investing suitable for investors with moderate to high risk appetite, who understand market volatility and are investing for the long term.
Minimum Investment, Fees, and Operating Costs
One of the most searched aspects of Parag Parikh Global Investing is cost structure. Here is a clear breakdown:
Minimum Investment
- USD 75,000 (approximately ₹60–65 lakhs depending on exchange rates)
- Applicable to Resident Individual investors
Management Fees
- 2% per annum + 18% GST
- Charged monthly based on average daily AUM
Other Costs
- Operating expenses charged at actuals
- ETF expense ratios (if applicable) are additional
- Brokerage and custody handled by Interactive Brokers LLC
There is no exit load and no lock-in period, offering liquidity flexibility uncommon in global investing structures .
Taxation of Parag Parikh Global Investing
Taxation is an important consideration when investing globally:
Capital Gains
- Long-term (holding > 2 years): Taxed at 12.5%
- Short-term (holding < 2 years): Taxed as per individual slab rates
Dividend Tax
- US dividends are subject to 25% withholding tax
- Other countries apply withholding based on local jurisdiction
Inheritance Tax
- Depends on country-specific laws and portfolio size
- Investors should consult tax advisors for estate planning
Tax rules can evolve, so professional advice is strongly recommended.
Ideal Time Horizon for Parag Parikh Global Investing
This strategy is not meant for short-term returns.
Recommended minimum investment horizon:
👉 5–7 years or more
Why?
- Value investing requires time for intrinsic value to be realized
- Currency cycles play out over long periods
- Global businesses compound steadily rather than explosively
Investors who stay patient through market cycles are more likely to benefit from the strategy’s full potential.
Who Should Consider Parag Parikh Global Investing?
This PMS is best suited for:
- High-net-worth individuals seeking global diversification
- Investors already heavily exposed to Indian equities
- Long-term investors comfortable with interim volatility
- Those looking for USD-denominated wealth creation
- Investors who value process-driven, conservative investing
It may not be suitable for short-term traders or investors needing immediate liquidity for planned expenses.
Key Advantages and Limitations at a Glance
| Advantages | Limitations |
|---|---|
| True global diversification | High minimum investment |
| Direct stock ownership | Not suitable for short-term goals |
| Strong value discipline | Currency fluctuations in short run |
| No exit load or lock-in | Equity market risk |
Frequently Asked Questions
Is Parag Parikh Global Investing safe?
It carries equity market risk but follows a conservative, valuation-driven approach focused on quality businesses.
Is this better than international mutual funds?
It offers direct stock ownership, customization, and transparency, unlike pooled fund structures.
Can NRIs invest?
Currently, it is structured primarily for Resident Indians.
Does currency risk work against investors?
Short-term fluctuations exist, but over long periods USD exposure often acts as a hedge.
Are returns guaranteed?
No. Returns depend on market performance and investment horizon.
How is this different from Parag Parikh Flexi Cap Fund?
Flexi Cap is a mutual fund with partial global exposure, while this is a dedicated global PMS.
Final Thoughts: Is Parag Parikh Global Investing Worth Considering?
Parag Parikh Global Investing stands out as a disciplined, transparent, and long-term global investing solution for Indian investors who want more than domestic exposure. With a strong investment philosophy, experienced fund managers, and direct access to world-class businesses, it fills a critical gap in Indian portfolios.
For investors who understand global markets, respect patience, and seek resilient wealth creation beyond borders, this strategy can play a meaningful role in long-term financial planning.
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