Should I buy individual US stocks like Apple, Nvidia and Microsoft instead of an index?

Published 19 September 2026

Sunil Kr from Bangalore

The big US companies are easy to understand and have done very well. Why not just buy a few famous names instead of holding a broad index or global fund?

Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

If you are just starting your international allocation, the approach discussed in the video is to keep it simple and start with broad exposure.

Building a portfolio with a handful of famous US stocks can leave you concentrated in a few companies and often in similar sectors.

The first international allocation should not be built around whichever companies or themes have produced the most visible recent returns.

For many investors, broad exposure such as the S&P 500 or a broader global portfolio should come before a concentrated Nasdaq, AI or semiconductor allocation.

Core first, satellite later.

“Avoid building your portfolio with those five famous US stocks.”

“Your first international allocation should not be a theme call. It should not even be a country call. It should be portfolio allocation — core first, satellite later.”

This is not personalized investment advice. Your goals, tax situation, portfolio size and risk tolerance may be different, so assess your own situation and discuss it with your financial and tax advisor.

Ask Sachin

Get your question answered by our advisor.

More from Sachin Kabra

Kashi from Chennai

Are GIFT City global funds better than buying foreign ETFs directly?

GIFT City funds look easier because I don’t have to manage a foreign brokerage account. But they are often more expensive than ETFs. Is the extra cost justified?

Bharat from Surat

Should Indians buy US-listed ETFs or Ireland-domiciled UCITS ETFs?

US ETFs are often extremely cheap, while Ireland-domiciled UCITS ETFs can cost a little more. For an Indian investor, when does the structure matter more than the expense ratio?

Ridhi from Kolkata

Should my international portfolio be S&P 500 or Nasdaq 100?

I want to start investing in the US, but I’m confused between the S&P 500 and Nasdaq 100. Are they interchangeable, or do they play very different roles?

Ratheeh from Mumabi

As an Indian investor, do I really need international exposure if I’m already bullish on India?

If I believe India will continue to grow strongly over the next 10–20 years, is there still a reason to invest globally, or am I just diluting a good India portfolio?

Chirag from Hyderabad

Which type of SIF should I choose: hybrid, equity long-short or Ex-Top 100?

Different SIF categories seem to have completely different risk and return profiles. How should I think about which category fits my portfolio?