India’s economic growth story is a stunning one — but the question of where investors should park their money is not always straightforward, with one Blackstone executive highlighting a common mistake. India is set to become the world’s third-largest economy by 2027, according to its finance ministry . The country’s stock market has also been in the spotlight this year, overtaking Hong Kong to become the fourth-largest globally in terms of the total value of listed companies. India’s benchmark indexes have notched successive record highs throughout the year — the Nifty 50 and BSE Sensex indexes are almost 20% and 17.5% higher year-to-date. However, focusing too much on the macro story can be dangerous for investors, according to Blackstone Private Equity’s head of Asia, Amit Dixit. “The rising tide does not lift all boats. I think you go to India for the macro, everybody knows,” Dixit said at the Milken Institute’s recent Asia Summit in Singapore. “But if you just invest on that thesis, you get your head handed to you. The way you make money is on the micros. You have to own certain micros.” Speaking to CNBC on the sidelines of the conference, Dixit said he sees potential in the technology, consumer, healthcare and unregulated financial services sectors. While the list of companies Blackstone invests in India are extensive, he spotlighted the likes of information technology service firm Mphasis , IT service management company R Systems and automotive components manufacturer Sona Comstar . ‘Not an easy place to do business’ Blackstone started investing in Indian companies and assets 19 years ago, but Dixit said its first five years were a “tough start.” “Even now, it’s not an easy place to do business for foreigners,” he said. Foreign investors are not permitted to directly purchase stocks through online trading platforms , although they can invest in the Indian market through mutual funds and exchange-traded funds (ETFs). Additionally, American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) enable international investors to access foreign stocks through their home stock exchanges. Dixit recommended a barbell strategy , particularly for chief investment officers looking to invest in the country. This involves being overweight on two distinctly different assets — usually high risk and low risk — to hedge against uncertainty. “I think, either end of the spectrum, you can make a lot of money as an investor,” he said. Manraj Sekhon, chief investment officer of Templeton Global Investments, shares Dixit’s optimism on India’s growth given a range of factors: the country’s pivot to manufacturing, a digitalization push facilitating easier trade and business transactions, and a rising middle class. Sekhon also touched on the country’s secular growth story — and the fact that investors are willing to pay a premium for the lack of correlation to global variables which affect most markets. He highlighted that as growth rates decelerate around the world, India’s case is opposite. “In terms of valuation, I think it will continue to trade at a premium. And if you look at what’s happening on the ground and what’s happening elsewhere, we probably deserve that treatment,” the chief investment officer said during a panel session at the Milken Asia Summit. “If you look at the last 10 years, if you had stayed invested in India [stocks], you would have made about 150% … [But] if you had missed the best 10 days in those 10 years, your return will down to 50%,” said Sekhon. He also urged caution that India’s stratospheric growth might not continue; it was the result of a confluence of factors which have already been “playing out over a couple of decades.” “As market participants, we have to be cautious with that as well, because it is probably the most universally favored asset class in equity markets today, alongside perhaps some U.S. tech companies, but it’s happened over a period of time,” he added.