Saurabh Mukherjea Has Moved Half His Personal Portfolio Out of India; Here's Why

Why It Matters

The reallocation signals waning confidence in India’s consumption‑driven growth and highlights a growing demand for offshore exposure, which could reshape capital flows and pressure domestic‑focused equities.

Key Takeaways

• Mukherjea’s personal assets now 50‑50 India vs global.
• Marcellus’s GIFT City fund holds ~₹600 cr (~$73 m) assets.
• Consistent Compounder portfolio trimmed consumption, added export manufacturers.
• Firm building a position on rising Indian bank NPAs.
• Outflows from domestic funds stabilise; investors favor global diversification.

Pulse Analysis

Saurabh Mukherjea, founder of Marcellus Investment Managers, has cut his personal exposure to Indian equities from 70 % to an even 50 % split with global assets. The move mirrors a growing appetite among high‑net‑worth Indians for tax‑efficient overseas exposure, a trend accelerated by the GIFT City platform that now houses roughly ₹600 crore (about $73 million) of assets. By allocating half his wealth abroad, Mukherjea signals that even seasoned market insiders see diversification as a hedge against domestic macro‑headwinds such as stagnant wages and tightening fiscal policy.

Marcellus’s flagship Consistent Compounder Portfolio (CCP) has been quietly re‑balanced. The fund has reduced weightings in consumption‑driven and lending stocks, sectors that are vulnerable to a projected slowdown in household spending, and increased exposure to export‑oriented companies like Divi’s Laboratories and its supply‑chain peers. In a more contrarian play, the firm is also accumulating positions in firms that stand to benefit from a rise in non‑performing assets (NPAs) within Indian banks, betting on a potential deterioration of asset quality that many investors are overlooking.

The strategic pivot has broader market implications. Continued outflows from domestic‑focused funds, now stabilising, suggest investors are reallocating capital toward global markets and export‑linked equities, which could pressure PSU, power, and road‑builder stocks. At the same time, a weaker rupee and expanding free‑trade agreements make Indian manufacturers attractive to foreign buyers, especially as supply chains shift away from China. Asset managers and retail investors should monitor NPA trends, rupee movements, and the pace of capital flowing into GIFT City, as these variables will likely shape equity performance through FY 27.