First gold, now global stocks: have Indian investors forgotten the risks?

Indian investors are increasingly allocating to global equities, with AUM in India-domiciled global equity-only funds surging over six-fold from about 16,000 crore in December 2020 to roughly 98,000 crore by May 2026. The trend is fuelled by US tech and AI rally, rupee depreciation, and rising interest in geographical diversification, with Nifty 50 falling 4% over the past year against a 26% gain in NASDAQ. Wealth managers including Nilesh Shah and Shankar Sharma caution that FOMO-driven flows risk detaching from fundamentals and warn of bubble parallels with the 1999-2000 internet boom, advising HNIs to increase domestic exposure instead.