100s of titles, one news app for just $10 a month.
Dive Deeper:
What plunged the rupee to its lifetime low against the dollar
Strong spending by the government to boost investment and growth is more important for reinforcing investor confidence in the Indian…
Nifty ends near day's low after last hour selling pressure. Key levels to watch tomorrow
The short-term trend of Nifty continues to be negative, say analysts
Data | Hitting record lows: What is driving the rupee’s fall?
Foreign outflows and elevated oil prices are the two factors that have accelerated the rupee’s fall
Consumer durable products to get costlier ahead as rupee plays spoilsport
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) believes that the fall of the Indian rupee against the dollar is…
One subscription that gives you access to news from hundreds of sites
Soaring inflation gives investors the jitters, stocks continue dive
Fears of aggressive interest rate hikes by the US Federal Reserve following unexpectedly high inflation in the world’s largest economy…
Which international funds are still open for investments?
Feeder funds or the fund of funds investing in the exchange-traded funds abroad are still open for investments
Get all your news in one place
Latest Business news:
Asian stocks up after Wall Street dip on China's Covid-bruised data
Hong Kong (AFP) - Asian stocks rose Tuesday despite a lukewarm lead from Wall Street after weak Chinese economic data…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Musk: Twitter deal at lower price "not out of the question"
Musk has continued to express skepticism about the company's estimate of spam and fake accounts.
Netflix toys with live TV as sales slump
Would pouring more money into original content do anything to help Netflix's profits?
Michael 'Big Short' Burry Shorts Apple
Hedge fund investor Michael Burry bets against Apple.
Once a powerful symbol in Russia, McDonald's withdraws
Two months after the Berlin Wall fell, another powerful symbol opened its doors in the middle of Moscow: a gleaming…
From analysis to good news, read the world’s best news in one place
U.S. backs U.N. push to get Ukraine grain back to global market
The United States supports efforts by U.N. Secretary-General Antonio Guterres to get Ukrainian grain back into the international marketplace amid…
ASX rises despite economic worries, Wall Street struggles on recession risk
Mining and energy companies propped up the Australian share market on Tuesday, though worries about a global economic slowdown and…

What rupee depreciation means for Indian investors investing abroad

By Livemint
Indian rupee

International investing acts as a hedge against rupee depreciation. With the recent rupee fall, Indian investors in US markets will stand to benefit, say experts.

“Your investments in the Indian stock market are in rupees. However, when you invest overseas (in the US stock markets) it is in dollars. You first convert your money into USD to invest and then back to INR when you redeem it. When the rupee depreciates against the dollar, it effectively means an additional return on your US investments," said Viram Shah, Co-founder & CEO, Vested Finance.

If an investor had invested 3000 in a fund at the time when USD INR was Rs. 60 rupees per USD. This implies that the investment in Dollar terms is USD 50. If the fund earns 0% net returns then the investment value in USD terms is $50, explained Ram Kalyan Medury, Founder & CEO, Jama Wealth, SEBI Registered Investment Advisor while sharing the example.

When the investor redeems, if the USD/INR exchange rate is say, 70 to a dollar as compared to 60 when he invested, then the investor will get redemption proceeds of 3,500, clocking gains of 500 on an investment of 3,000. Thus, a depreciation of rupee results in gains for owners of assets and receivers of income in USD.

“This is supposed to result in significant gains for Indian investors who have already invested outside India. However, the math is not that simple, once we factor the market returns. Indian markets have given a much higher relative return when compared to the US markets. We suggest that investors not go overboard in foreign exposure; while some exposure is good, the allocations must be moderate," said Medury.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
What plunged the rupee to its lifetime low against the dollar
Strong spending by the government to boost investment and growth is more important for reinforcing investor confidence in the Indian…
Nifty ends near day's low after last hour selling pressure. Key levels to watch tomorrow
The short-term trend of Nifty continues to be negative, say analysts
Data | Hitting record lows: What is driving the rupee’s fall?
Foreign outflows and elevated oil prices are the two factors that have accelerated the rupee’s fall
Consumer durable products to get costlier ahead as rupee plays spoilsport
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) believes that the fall of the Indian rupee against the dollar is…
One subscription that gives you access to news from hundreds of sites
Soaring inflation gives investors the jitters, stocks continue dive
Fears of aggressive interest rate hikes by the US Federal Reserve following unexpectedly high inflation in the world’s largest economy…
Which international funds are still open for investments?
Feeder funds or the fund of funds investing in the exchange-traded funds abroad are still open for investments
Get all your news in one place