Should I invest in global themes like AI, semiconductors, China or defence?

Published 19 September 2026

Arjun from Kochi

Every few years a different global theme seems to outperform. Is it worth adding these themes early, or should they form part of my core international portfolio?

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

The problem is not that these themes are necessarily bad.

Some of them may be excellent long-term opportunities.

The problem is that investors often enter these stories after the visible returns.

Every few years the popular story changes — China, Brazil, Taiwan, Korea, AI, semiconductors, defence, luxury or Nasdaq.

Buying after strong visible returns is not the same as building a portfolio.

For many investors, broad global exposure or the S&P 500 should come before concentrated themes.

Your first international allocation should be a portfolio-allocation decision, not a return-chasing decision.

“The problem is that investors usually enter these stories after the visible returns.”

“That is not a portfolio-construction strategy. It is more like return chasing.”

This answer is derived from Sachin Kabra’s video on international investing.

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.

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