More Indians Are Investing Globally, But Many Still Hesitate Due To Complexities: Kotak Securities COO

As Indian investors increasingly look beyond domestic markets, the US has emerged as a favoured destination for global diversification. “With the strong performance of US equities and increasing interest in portfolio diversification, more investors are utilizing the Liberalized Remittance Scheme (LRS) to access international markets,” says Sandeep Chordia, COO, Kotak Securities, in an exclusive interview with Bizz Buzz.

Despite growing interest, adoption remains low due to limited awareness and a lack of accessible research. “Many investors find direct stock investments complex, leading to a preference for diversified options like Nasdaq and Greater China ETFs,” he notes.

Brokerage platforms play a crucial role in bridging this gap by providing seamless execution, research insights, and educational initiatives. Kotak Securities, through its partnership with Interactive Brokers, aims to simplify global investing while also equipping investors with the right tools. “By making international investing more accessible, we empower Indian investors to confidently navigate global markets,” Chordia emphasises

How do you see the trend of Indian investors investing in global markets, especially the US, evolving? What role can brokerage platforms play in this?

The trend of Indian investors exploring global markets, particularly the US, is steadily growing. With the strong performance of US equities and increasing interest in portfolio diversification, more investors are utilizing the Liberalized Remittance Scheme (LRS) to access international markets.

At Kotak Securities, we facilitate this through Interactive Brokers, enabling seamless global investments. However, adoption remains relatively low due to limited awareness and the lack of accessible research on international stocks. Many investors find direct stock investments complex, leading to a preference for diversified options like Nasdaq and Greater China ETFs, which offer simplified exposure to global markets.

Brokerage platforms play a critical role in accelerating this trend by offering educational initiatives, in-depth research, and user-friendly platforms that make global investing more accessible. By bridging the knowledge gap and providing seamless execution, brokerage firms can empower Indian investors to participate confidently in international markets.

What are the main benefits for Indian investors who want to diversify their portfolio?

Diversifying globally provides Indian investors with multiple advantages, primarily currency and geographic diversification, which helps mitigate risks associated with domestic market fluctuations. By investing in international equities, particularly in developed markets like the US, investors can reduce reliance on the Indian economy and gain exposure to sectors that may not be well-represented in domestic markets.

One key benefit is access to globally renowned companies listed on major exchanges such as the NYSE and Nasdaq. Many of the world’s largest and most innovative firms—spanning technology, healthcare, and consumer goods—are based in the US, offering Indian investors the opportunity to participate in their growth.

Additionally, global investments serve as an effective hedge against currency depreciation. If the Indian Rupee weakens against the US Dollar, the value of US investments rises in Indian rupees terms, providing a natural safeguard against currency fluctuations.

Another advantage is portfolio stability and risk reduction. Since global markets do not always move in tandem with Indian equities, international diversification can help offset volatility during domestic downturns. This is particularly beneficial in times of economic uncertainty or geopolitical risks that may disproportionately affect Indian markets.

With brokerage platforms now offering seamless access to global markets and diversified options like ETFs tracking Nasdaq or Greater China indices, investors can conveniently expand their portfolios. By incorporating international assets, Indian investors can enhance long-term wealth creation while reducing the risks of a purely domestic investment strategy.

What challenges do investors face when investing internationally, and how does Kotak Securities help them manage these challenges?

Investing in global markets comes with challenges such as high costs, tax complexities, and regulatory compliance. Many US brokers either charge brokerage fees or adjust bid/ask spreads in zero-brokerage models, making cost a key concern for Indian investors. Additionally, tax-related requirements, including declarations with US tax authorities, can add layers of complexity, discouraging participation. Investors also face difficulties in accessing reliable research and seamless fund transfers, further limiting global investment adoption.

At Kotak Securities, we address these challenges by partnering with Interactive Brokers, a globally recognized platform. This collaboration ensures transparent pricing, efficient execution, and simplified tax processes, making international investing more accessible. We also provide investors with educational resources, research insights, and customer support to help them navigate global markets with confidence. By reducing operational hurdles and offering a structured approach, Kotak Securities enables Indian investors to diversify their portfolios internationally with greater ease and clarity.

What are the differentiated offerings that make Kotak Neo a unique trading platform?

Kotak Neo stands out as a next-generation trading platform that combines simplicity, intelligence, and automation to meet the needs of both beginner and experienced investors. Designed with a customer-first approach, it addresses common trading challenges by offering powerful tools that enhance decision-making and execution efficiency. For equity investors, Kotak Neo provides features like Stock SIPs, enabling systematic investing in stocks at regular intervals, and curated stock baskets, which help investors gain diversified exposure to specific themes or sectors effortlessly. These features allow users to build and manage their portfolios with discipline and long-term focus.

For options traders, the platform offers InstaTrade, which enables real-time execution of trades, and the Strategy Bot, an AI-driven tool that assists traders in crafting and executing options strategies based on market trends. These tools empower traders with speed, precision, and automation, making options trading more accessible and efficient.

Additionally, Kotak Neo is built with a seamless user interface, deep analytical insights, and personalized recommendations, ensuring that investors can navigate the markets with confidence. Whether someone is a long-term investor or an active trader, Kotak Neo’s innovative features make it a comprehensive, intuitive, and performance-driven trading platform.

What are the initiatives taken by Kotak Securities to educate and support first-time investors?

Kotak Securities is committed to educating and supporting first-time investors through comprehensive research, digital tools, and interactive learning initiatives. Our in-house research team conducts webinars, workshops, and training sessions, providing insights into stocks, market trends, and global developments. We also offer detailed research reports, educational articles, and market analysis, helping investors understand investment opportunities and risks, making it easier for them to navigate the markets with confidence.

Our trading app is designed to simplify decision-making by offering intuitive features, personalized recommendations, and tools that guide investors on buy, sell, or hold decisions. Additionally, we leverage social proofing, AI-driven analytics, and deep market insights to provide valuable context, ensuring that first-time investors can make informed choices. We also provide demo trading features that allow beginners to practice investing without real financial risk. By combining expert guidance, technology-driven solutions, and investor-friendly features, Kotak Securities empowers new investors to build their investment journey on a strong foundation, equipping them with the necessary tools and knowledge to make confident and informed financial decisions.

As a leader, what is your vision for the future of the Kotak Neo platform in the changing investing landscape?

My vision for Kotak Neo is to establish it as a one-stop investment platform, catering to both first-time and experienced investors. With dedicated Youth and Pro plans, we have already gained strong traction across diverse investor segments. Our goal is to scale these offerings further, integrating advanced tools and user-friendly features that align with evolving market trends and investor expectations.

As the investing landscape transforms, our focus remains on innovation, accessibility, and personalization. By continuously enhancing the platform with cutting-edge technology, seamless execution, and insightful research, we aim to deliver an intuitive and efficient investment experience for every user. Whether it’s long-term wealth creation or active trading, Kotak Neo will empower investors with the right tools to navigate the markets with confidence.