Indian investors are increasingly seeking opportunities in foreign markets, with investments in overseas equities and debt exceeding $2.2 billion in the 11 months through February, representing a 60% increase from the previous year, according to the Reserve Bank of India. This shift is largely driven by the underperformance of local stocks, as the MSCI India Index has lagged behind its emerging market peers by nearly 50% over the past year. Investors are motivated by the potential for diversification and the appeal of sectors such as artificial intelligence and semiconductors, which are less represented in India's $5 trillion equity market.

Platforms facilitating foreign investments are experiencing rapid growth. Vested Finance Inc. reported that its assets reached $1 billion in April, doubling from a year ago, as more investors seek to capitalize on global opportunities. Local asset managers are responding to this trend by launching outbound funds, such as DSP's Global Equity Fund, which focuses on US stocks and also includes investments in Taiwan, China, and Europe.

Despite the growing interest, global investments still represent a small portion of overall flows, with local stocks and bonds remaining dominant. However, overseas-focused funds have shown strong performance, with some, like the HSBC Brazil Fund, gaining nearly 70% in the past year. As the investment landscape evolves, more platforms are emerging to facilitate access to global markets for Indian investors.