How can I invest internationally if mutual funds are restricted?

You can explore foreign broker platforms for US equities and ETFs, or consider retail outbound funds launched in Gift City.

What are the risks of investing through foreign broker platforms like Vested?

While investments are insured up to $500,000 by SIPC in the US, underlying investments are not held in your demat account but with the platform's foreign broker partners.

What is the tax implication for Gift City retail outbound funds?

For Gift City funds, tax is applied at the fund level, with rates like 35.88% for dividends and varying rates for short-term and long-term capital gains.

Home / Business and Economy / Rupee Crash: New Ways to Protect Your Investments

Rupee Crash: New Ways to Protect Your Investments

7 Dec

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Summary

Rupee hits record low of ₹90 against the dollar.
Global diversification offers benefits during rupee depreciation.
New investment routes include foreign broker platforms and Gift City funds.

Rupee Crash: New Ways to Protect Your Investments

The Indian rupee has fallen to a historic low of ₹90 against the dollar, renewing focus on hedging investment portfolios against currency depreciation. As Indians increasingly spend in foreign currencies for overseas education and travel, diversifying investments internationally becomes more important. A weakening rupee can actually enhance the value of returns earned abroad, making global exposure a strategic move for investors.

Traditional routes for global diversification, such as mutual funds and international ETFs, currently face limitations due to overseas investing caps and domestic trading premiums. However, new options are emerging. Foreign broker platforms provide access to US equities and ETFs, allowing investors to buy fractional shares. Additionally, Gift City is emerging as an investment hub, with funds like DSP's retail outbound fund offering a different tax structure for global investments.