The Indian rupee plunged to a record low for a second time this week at 77.63 against the dollar amid a broader decline in Asian currencies. the USD is up 4.3% against the domestic currency so far this year, according to Bloomberg data.<\/p>\n\n\n\n
International investing acts as a hedge against rupee depreciation. With the recent rupee fall<\/a>, Indian investors in US markets will stand to benefit, say experts.<\/p>\n\n\n\n If an investor had invested \u20b93000 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, Maxiom Wealth, SEBI Registered Investment Advisor while sharing the example.<\/p>\n\n\n\n When the investor<\/a> redeems, if the USD\/INR exchange rate is say, \u20b970 to a dollar as compared to \u20b960 when he invested, then the investor will get redemption proceeds of \u20b93,500, clocking gains of \u20b9500 on an investment of \u20b93,000. Thus, a depreciation of rupee results in gains for owners of assets and receivers of income in USD.<\/p>\n\n\n\n \u201cThis 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.<\/p>\n\n\n\n Ram Kalyan Medury, Founder & CEO Maxiom Wealth <\/a>shared his views on Rupee Depreciation here. And also Published in livemint<\/a>)<\/p>\n\n\n\n\n Maxiom Wealth \u2014 Free Tool<\/p>\n A 7% FD rate drops to ~4.9% after 30% tax for high earners \u2014 barely above inflation. See how FD compares to goal-based investments over your horizon.<\/p>\n FD Returns Calculator \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" The Indian rupee plunged to a record low for a second time this week at 77.63 against the dollar amid a broader decline in Asian currencies. the USD is up 4.3% against the domestic currency so far this year, according to Bloomberg data. International investing acts as a hedge against rupee depreciation. With the recent rupee… Read More »What Rupee Depreciation Means For Indian Investors Investing Abroad<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5562,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[198,383,555,650,651],"class_list":["post-1549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-creation-portfolio-management-pms-investment-advisory","tag-equity-investment-advisor","tag-invest-abroad","tag-nri-investors","tag-rupee-against-dollar","tag-rupee-depreciation"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/1549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/comments?post=1549"}],"version-history":[{"count":4,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/1549\/revisions"}],"predecessor-version":[{"id":6600,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/1549\/revisions\/6600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media\/5562"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media?parent=1549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/categories?post=1549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/tags?post=1549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Are FD Returns Beating Inflation After Tax?<\/h3>\n