I’m trying to find out more about investing in Nasdaq 100 FoF.
I will likely use the Coin portal and invest around 10K each in 5 funds (one time investment around April.)
I would like to know what effect Rupee depreciation will have on the outcome.
Say in 3 years the Nasdaq 100 goes up by 30 % & the ₹ INR depreciates by 15 % then does my NAV become Up 45% or Up 15% or Up 30% ?
I can’t figure it out. Help if you have an idea. Thanks.
For sake of easy understanding, look at it this way:
You can only buy and sell us stocks with us dollar.
Answer to your question: 45%
Yes your understanding is correct. Apart from the Nasdaq 100 giving you returns, the rupee depreciation is an added advantage as you are buying it in INR.
Today I was watching a video 'Will India continue to out perform peers" by Business Today.
In one of the interview, the question of investing in US funds were talked about. An interesting point the fund manager was saying -
The purpose of investing overseas apart from creating the alpha (which everyone wants) is to ensure that there is proper diversification. Meaning - When Indian Market goes down, US Market may go up or be neutral. This will ensure that the overall portfolio remains balanced. So it is not always the alpha or returns.
One of the interviewer was Mr.Udayan Mukerjee - Just enjoy watching him, very candid and honest.
There are various topics in this video.