NRIs, Don't Let Emotion Trump Your Portfolio Decisions

For many Non-Resident Indians (NRIs) living in the US, investing back home is often driven by emotion as much as economics. Viram Shah, Founder & CEO of Vested Finance, notes that investors assume India's faster economic growth automatically translates into higher investment returns, but that isn't necessarily true for someone whose wealth and expenses are measured in US dollars.

According to long-term data from the NSE, over the 30 years ended March 2026, the Nifty 500 delivered a compounded annual return of about 8.26% in US dollar terms, while the S&P 500 returned about 8.33% annually. India's economy may have grown faster, but a significant part of that advantage was offset by the depreciation of the rupee against the US dollar over time.

Shah emphasizes that 'India isn't necessarily a higher-return market for someone earning and spending in dollars.' He suggests that the case for investing in India should be based less on trying to outperform the US and more on reducing dependence on a single economy and market cycle. This is where its diversification value lies.

Gupta, Founder of SIPYatrra, recommends considering where future expenses are likely to arise when making investment decisions. 'Your portfolio should primarily reflect where your future financial responsibilities lie,' he says.