1. Investing in US equities for diversification and access to the largest equity market can be a good strategy.
2. ProPicks Strategies on InvestingPro+ offers AI-driven portfolios like Tech Titans and Dominate the Dow.
3. These strategies historically outperform, with Tech Titans returning 1,745% and Dominate the Dow 631% over 11 years.
Geographical diversification which simply means investing in various countries greatly minimizes the risk concentration pertaining to one country. The most common and explored option in today’s time is the US market.
Many investors in India also invest directly in the US equity market via the RBI’s LRS. In case you also hold a portfolio of US equities then you must check out ProPicks, the game-changing feature of InvestingPro+.
ProPicks Strategies utilizes a blend of artificial intelligence (AI) and expert human analysis to spotlight stocks with the potential to outperform market benchmarks. The AI model learns to identify different financial metrics and their correlation to the stock’s overall performance throughout the years and to assign relative weights to the various financial metrics which are then used to rate these stocks. Finally, the highest-rated stocks are picked to create a portfolio that can then be replicated by investors.
There are a total of 6 strategies available currently for the US markets (the Indian market is soon to be followed). Let’s pick one of my favorites - Tech Titans. This strategy picks stocks from the IT sector with a market capitalization of over $1 billion.
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As you can see, the strategy has generated a gigantic return of 1,745% in the last 11 years, beating the benchmark S&P 500 index’s return of 260%. That’s a massive outperformance of 1,485%. The portfolio is rebalanced monthly and all the additions/subtractions can be seen by investors on the day of rebalance.
Likewise, for more conservative investors, there is another strategy called “Dominate the Dow”. Known for their stability, market leadership, and high growth potential, stocks on the Dow Jones are considered some of the most reliable on the market. The strategy picks the 10 standouts from the index that make up the portfolio.
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The strategy has delivered a 631% return in the last 11 years, beating Dow Jones’ return of 198.3%. The strategy has given an annualized return of 19.5% and that too from bluechip companies alone. Because the portfolio consists of large caps, the volatility is quite low, making it a good choice for conservative or low-risk appetite investors.
Be sure to check out InvestingPro+ to stay in sync with the market trend and what it means for your trading. As with any investment, it's crucial to research extensively before making any decisions. InvestingPro+ empowers investors to make informed decisions by providing a comprehensive analysis of undervalued stocks with the potential for significant upside in the market., and not to forget the revolutionary AI-based ProPicks.
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