When will indian investors in global funds make money in the indian debt markets?

when will indian investors make money in the indian debt markets?

Level - INTERMEDIATE

The returns from international funds are significantly altered by exchange rate risk. A rupee appreciation or depreciation will impact the net return from an international fund. Watch this investor education video by Moneykraft.

AUTHOR(S): Deepa Vasudevan

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When will Indian investors in global funds make money in the Indian debt markets?

 The returns from international funds are significantly altered by exchange rate risk. A rupee appreciation or depreciation will impact the net return from an international fund.

1 2 3

    1.The total return from a international fund does NOT depend on



  • The portfolio return of the global fund in the base currency
  • Domestic Stock market perfomance
  • The exchange rate
  • 2.If a Global Fund portfolio is up by 10% in dollar terms and the rupee has depreciated by 10% against the dollar,what is the return to the investor in rupee terms?



  • More than portfolio returns in dollar terms
  • Same as the portfolio returns in dollar terms
  • Lesser than portfolio returns in dollar terms
  • 3.Why do certain Mutual funds have only upto 35% exposure in International securities?



  • For tax benefit
  • They want to maintain asset allocation between Indian and International Equities
  • They have limited expertise in the International securities
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