Historically, Indian Rupee has exhibited weakness against the US dollar. In 2017 you had to shell out Rs 64 to buy a dollar but now you need Rs 80, thus reflecting a weaker INR. One of the many ways to negate or offset the impact of a stronger dollar is by owning assets denominated in dollar. Investors can diversify their portfolios by investing in US stocks and ETFs with a long-term objective. “The depreciation of the rupee against the dollar effectively adds to the returns on US equity investments,” says Viram Shah, Co-founder and CEO, Vested Finance.
Any fall or rise in the value of INR against the dollar will have direct implications on the portfolio returns. “The rupee depreciation adds to the returns but should not be the sole reason for investing in the US markets. It’s difficult to predict currency movements in the short to medium term. Over the last decade, the returns in the US stock markets and Indian stock…
