In conversation with Vinay Bharathwaj, Co-Founder and Co-CEO, Stockal

Elaborating on the reason why investing globally makes more sense now, Vinay Bharathwaj, Co-Founder and Co-CEO, Stockal, also highlights the emerging themes attracting investors

What are the top three reasons as to why an individual must consider investing beyond Indian shores?

Investing beyond Indian shores can help diversify one’s portfolios, hedge against risk and tap into growth in economies beyond borders. Investing in international markets also:

• Enables geographical diversification which is exposure to global companies in the portfolio.
• Gives investors exposure to trending themes like cloud, AI, blockchain and cryptos, Metaverse, renewables and EV space, to name a few.
• Helps investors to maximise their portfolio returns. The US markets, in particular, have consistently outperformed the rest of the world in the last two decades.
• Investors can gain from the USD currency appreciation returns by investing in the US’ markets.

Can you shed some light on your partnerships with leading brokerages across the world and cross-border operation strategies?

Domestically, we have partnerships with all the big Indian brokers like HDFC Securities, IIFL, Motilal, Scripbox and Geojit, amongst others. Speaking of cross-border operations, Stockal is establishing a presence in MENA and is also in talks with partners in Southeast Asian countries like Indonesia and Malaysia.

What trend are you witnessing with respect to the interest of Indian investors in climate technology and renewable energy companies in the US’ markets?

Climate change and renewables have always remained favourable themes for investors. In 2021, the renewable energy industry remained remarkably resilient. Stockal also had Renew Power, the first Indian renewable energy entity to be listed on NASDAQ as a part of our stacks. The renewable energy growth is poised to accelerate in 2022 as concern for climate change and support for environmental, social and governance (ESG) considerations grow and demand for cleaner energy sources from most market segments accelerates. The year ahead promises new growth paths for the renewable energy industry, potentially aided by the greater emphasis laid by the US administration, increasing investment in these segments and the goal to move towards a carbon-neutral economy.

What are ‘stacks’? Can you shed some light on your partnership with institutions such as Global X owned by the international Mirae Asset Group to offer stacks?

Stacks are curated and managed portfolios that have been built by experienced global hedge funds and portfolio managers on specific themes or a sector such as technology stack, AI stack, etc. We have partnerships with prominent players like Alphaniti, Global X by Mirae, Glovista, and Omniscience who come with the experience and expertise in handling global portfolios across asset classes to offer these stacks on our platform for global investors. We have the disruptors’ portfolio stack investing in trending themes like cloud, e-commerce, cyber security and fintech, to name a few. Stacks have a minimum investment of USD 1,000 and have consistently given good returns with a CAGR anywhere between 25-45 per cent.

According to you, what are the key risks involved in investing internationally?

Volatile markets and rising global inflation would be key risks in 2022 for new investors looking at investing in international markets. While 2021 was all about recovery from corona virus and its repercussions, 2022 is expected to be the start of metamorphosis, demanding close attention from investors keen to make the most of tomorrow. The investment opportunities for investors will continue to emerge. However, cues from the fast-changing environment need to be watched closely.

Can you explain which category of investors should preferably invest in international stocks?

Stockal has witnessed investors of all categories on the platform – be it novice retail investors who have benefited tremendously from our fractional investing option or large brokers and experienced high-net-worth individuals who are well-versed and experienced in the global markets. More than 70 per cent of our investors belong to the metro cities, mostly in their 30s, and consist of a mix of millennials, HNIs, etc. What is important is that investors need to understand their financial goals and risk appetites for investing in international markets.