Why Mature Markets Still Matter in a Concentrated Portfolio

Who this is for

This article is intended only for Certified High Net Worth Individuals and Self-Certified Sophisticated Investors, as defined under the Financial Promotion Order 2005. It is general information, not advice, and not an offer or inducement to invest. The private syndicate arrangements referred to are not regulated by the Financial Conduct Authority, sit outside the collective investment scheme regime, and carry no Financial Services Compensation Scheme protection. Capital is at risk and returns are not guaranteed. If you do not fall within those investor categories, please treat this as background reading only.

Concentrated portfolios are built with conviction. But what happens when the conditions that justified that conviction begin to shift? As the environment surrounding Indian markets evolves rapidly, it is worth examining whether the allocations that made sense a decade ago still hold up under scrutiny.

“I have never led with the currency argument. The case we make to investors starts with the income yield and what the asset produces in absolute terms. Currency is a diversification argument, not an appreciation play. India competes on exports against other developing nations and needs to keep the rupee competitive to hold that position. But what I have noticed is that investors who have already realised a property with us and had to remit back, those investors bring up the GBP/INR movement themselves. They did not need persuading on the currency point by the end.”

Prashanth Prabhu, Founder · 29k Asset Management

A portfolio that looks diversified The concentration problem

Most HNI investments look diversified on paper. Domestic real estate across a few cities. Indian equities weighted toward IT and banking. Fixed deposits. Gold. Increasingly, some US tech stocks accessed through LRS-funded brokerage accounts. In Indian real estate specifically, local knowledge, a familiar domestic regulatory environment, and appreciable capital appreciation meant there was rarely a reason to look further.

But the underlying exposures often run together. Indian IT revenue is denominated offshore but the risk lands domestically. On 7 April 2025, the Nifty IT index fell more than 7% in a single session as tariff announcements hit US-exposed technology stocks. The Nasdaq fell more than 10% over two weeks. Indian equities followed. The INR came under simultaneous pressure.

The domestic real estate position does not fall in nominal terms, but it offers no protection either. It simply sits there, in the same currency, in the same economic cycle, while everything else moves together.

Why investors ruled it out, and what has changed The objections, addressed

Most HNIs have thought about international property but have ruled it out for specific reasons. The objections usually run along these lines: it is property you cannot easily inspect, it means navigating legal structures you do not know, and a regulatory framework covering FEMA compliance, LRS limits, and double taxation that seems like more trouble than it is worth. There is also the trust gap.

Here is what has materially changed for investors today.

Tax considerations, stated plainly Structuring · what applies · what can be managed

It is a reason to move beyond a concentrated domestic portfolio.

Important notice

Capital is at risk. The value of property and the income it produces can fall as well as rise, and an investor may get back less than they put in. Past performance and the market data referenced here are not a reliable indicator of future results, and nothing in this article is a forecast.

This article is for informational purposes only. It is not investment advice, tax advice, legal advice, or financial advice of any kind. Nothing in this article constitutes a recommendation, solicitation, or offer to buy, sell, or hold any asset or investment product.

Yield figures, capital growth estimates, market comparisons, and scoring frameworks presented in this article are indicative only. They do not represent guaranteed, assured, or projected returns. One size does not fit all: what is appropriate for one investor may not be appropriate for another, depending on domicile, tax residence, family structure, asset profile, risk appetite, and investment objectives.

International property investment involves complex legal, tax, and regulatory considerations that differ significantly by jurisdiction. Before making any investment decision, seek independent advice from qualified legal, tax, financial, and investment professionals in your own jurisdiction and in the jurisdiction of the target asset. Nothing in this article should be relied upon as a substitute for advice from your own professional advisers.