Invest in Indian Stock Market (SENSEX or NIFTY)

With US stock market underperforming the global markets over the last few years, it is a good idea to diversify your investment internationally. Emerging markets have been turning in impressive returns over the recent past, especially the BRIC countries (Brazil, Russia, Indian and China). While they are not immune to US economic woes, their fundamentals remain strong into the foreseeable future. Indian economy is booming and here is how you can easily take advantage.

Buy Indian stock market tracking ETFs.
For instance, PowerShares India Portfolio ETF (PIN) or iPath MSCI India Index ETN offers an easy way to participate. You can buy and sell them just like you would any other stock.

Buy mutual funds focused on Indian companies.
For instance Matthews India Fund (MINDX), Eaton Vance Greater India (ETGIX), JP Morgan India (JIDAX) and the EM Capital India Gateway (EMINX). Note: the latter three funds charge front-end loads ranging from 5% to 5.75%. There are also closed-end funds like the India Fund (IFN).

Buy Indian stocks.
If you are able to research companies listed in other markets, you have couple of ways to buy their stocks. You can either open trading account in the market of your choice (your broker might support this already (Tip: pay attention to transaction fees) or you can look for ADRs of foreign companies which are listed in NYSE (such as INFY).

Buy US stocks that are diversified internationally.
There is nothing wrong with sticking with the US companies that you know and trust but keep in mind that companies that have business abroad would likely give you better return on investment due to better growth prospects and favorable currency exchange rates. Think of Coke, Pepsi, Procter & Gamble, Phillip Morris etc.