Why we dont take domestic equity and global equity as asser class what is problem
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what is your question, I think you missed some part.
What I got from the wording is that you might be asking why we don’t consider them similar.
presuming that my understanding is correct, both classes have different risk factors lets say you reside in india and you are exposed to certain emerging markets risk like we have higher soverign risk as compared to other developed nations. So it won’t be fair for us to assume that risk of investing in india’s benchmark vs Global benchmark lets say MSCI (which has weightings from different countries ) is same. Both have different risk factors . particular country index is also subject to the idosyncratic risk whereas global index that risk is also mitigated because you have exposure to different countries.