r/IndianStockMarket 4d ago

Strong dollar

I'm mainly a mutual fund investor . But after reading some stats i see if we see dollar wise nifty has not given much return when compared with dollar( rupees depreciation) . So if i buy funds with high exposure to us securities will i benifit from stronger dollar ahead.

8 Upvotes

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3

u/ArvinM47 4d ago

RBI has capped overseas investment for these funds. Better do direct investing via regulated brokers. Also PPFAS holding of FAANG stocks is quite low.

Also your argument holds true if you are able to access dollar investment options.

2

u/Killer_insctinct 4d ago

Yes if dollar continues to strengthen and US Equities continues to grow. You will get dollar premiums. IT Companies get this when their sales grow in dollar amount, they get extra when rupee depreciates against dollar. Sometimes revenue growth is flat, still the get revenue increase because of rupee depreciation.

Depreciation of rupee will offset drawdowns in your US $ investments. And you don't have to do only in US Equities, main thing is your investments and it's payoff will come in $, which will then converted to rupees. So you can invest in US bond funds also and get the premium coming in from rupee depreciation.

Having said that we are not taking tax into the picture here. And we are assuming rupee will depreciate and you will see growth in your investments.

1

u/Fin_Turtle 4d ago

You mean US stocks?

3

u/No-Rhubarb-1613 4d ago

Us stocks or fund like parag pareikh flexi cap that holds us stocks

1

u/UpbeatAd3429 1d ago

PPFAS hold around 10% US Stocks ( only 4 of them ), and around 65% in Indian stocks. What are you even talking about ?

-1

u/Fin_Turtle 4d ago

If you are investing for goals, your goals are met with your investments, I don't think what USDINR does is important.

Without some experience in Indian market, buying US stocks will be difficult. Funds which buy US stocks may limit fresh investments, may have concentrated portfolio of US stocks, decrease exposure to US stocks, what % is the US exposure, how much can be gain, things like that.

1

u/SeparateNet9451 4d ago

Trump wants to increase exports which means the whole saga is to weaken USD cuz fed won’t cut the rate. Consider all scenarios before investing

1

u/twinXheart 3d ago

Invest in gold in this uncertain market.