Shield Your Portfolio From Rupee Slide
Portfolio is a combination of investments. You can shield your portfolio from rupee slide considering following points:
1. International Funds: The mutual funds that invest in international equities are a good way to hedge your portfolio against rupee depreciation.This is so because you invest in these schemes in rupees but money invested abroad in dollars.So, if the dollar appreciates against the rupee, you can expect a jump in returns from the global fund.
2. Export-Oriented Companies: One way is to invest in those companies who have major chunk of their income from exports. They will get income in dollars and their margins will become stronger as dollar appreciates.
3. Gold: You can also invest in Gold. India is a large importer of Gold and their price is paid in dollars. After import their price is calculated after conversion of dollar into rupee. This way you can get better returns if you invest in gold. You must have noticed that gold prices have appreciated in last few months.
These are the few ways of providing shield to your portfolio from rupee slide.