We are living in an increasingly globalised world. As an Indian consumer, we have benefitted from access to a variety of high-quality goods and services that are produced outside India but not produced domestically. However, integration into a global economy also brings in a unique challenge to investments. A negative development in any corner of the world has the potential to impact more than one country or a globally used commodity that brings volatility to our domestic portfolios. Be it a geopolitical risk or a completely unthinkable one like the coronavirus outbreak. One question that I am often asked is how should investors eliminate risk from investments? Fact remains that risk cannot be eliminated but can be reduced by diversification. Diversifying investments across asset classes and also within the asset class is key to manage risk. As an investor you may be thinking your equity investments are well diversified across mutual funds, stocks, and Portfolio Management Services (PMS), but have you considered the fact that market capitalisation of India is $2 trillion while market capitalisation of the rest of the world is $87 trillion. So, if you are not invested in global markets outside India, you are ignoring an opportunity that is roughly 43 times bigger.