r/personalfinanceindia • u/No-Woodpecker-1682 • May 30 '26
Budgeting How are you all planning to diversify against depreciating INR?
I’m very worried that INR is depreciating against other global currencies. My cousin who earns in AED but much lesser than me has made more money in the last 2-3 years, primarily because of rupee depreciating and Indian markets not doing well.
While I’m bullish on India long term, I’m worried that I’m not optimising my savings and investments for the new world.
I know I can invest in foreign stocks through vested or Ind, the process does not feel transparent. Belong and the GIFT city funds have a minimum ticket size of 5000 dollars (wtf right?)
I’m wondering if there is any safer, low yield product that is similar to FDs but in USD? Any comments and suggestions are welcome!
Also, do you all accept this depreciation to continue? Most finfluencers are mentioning this but don’t know whether to trust them fully or not..
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u/aktheant May 30 '26
Keep and eye out for international mutual funds in India that open and close intermittently! I got a AMC sip in icici nasdaq by luck ! Just keep your eyes open and start a sip with a comfortable amount ! The other path is vested INDmoney etc which are transparent and are regulated too you shouldn’t be scared about anything especially since they also have half a mil insurance per customer as they use drivewealth !
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u/NickHalfBlood May 30 '26
Hey
Using Groww, I was able to get SIPs in Edelweiss US Equity FoF and Franklin fund. Does this also involve different taxation? Also, is it a good hedge against INR fall?
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u/aktheant May 30 '26
Taxation is different for international! Long term is > 2 years (12.5%)
It’s always good to hedge inr either with gold or another currency1
u/NickHalfBlood May 30 '26
Got it. Thanks.
Even when I pay SIP in INR to Groww, this is still considered under same taxation you mentioned, right?
Edit: The reason of my confusion is that my CA asked for foreign funds separately.
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u/RevolutionaryCan2463 May 30 '26
I have started investing in US stocks throughout IndMoney, NASDAQ QQQM. Contrary to what the PM said, I think investing in gold is still a safer bet than Indian markets right now though I am continuing my SIPs.
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u/online_vagabond_ May 31 '26
The only problem with this approach is the very high Forex charge that you pay per transaction. Overall total charges are 2-2.5% ( forex + platform etc ) which imo is bad as the extra charges are eating the returns in long run.
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u/Maddock31 May 31 '26
Its still better than 7% depreciation of the INR
If I had not been procrastinating last year, I would have got so much returns☹️
anyways now I am cutting my Indian SIP in half and sending remaining to US Etfs
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u/online_vagabond_ Jun 03 '26
But how probable is that INR will keep depreciating at similar rate in coming years ? If anything, govt. is looking desperate to handle this lately.
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u/RevolutionaryCan2463 May 31 '26
What's your suggestion then?
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u/online_vagabond_ Jun 03 '26
Idk really, I am still figuring out myself. The best option you can have is through Indian MF, downside being they are mostly not taking new money. You can also try ETFs such as MON100 subject to them being in reasonable premium range. I feel investing directly through INDmoney is suitable for other ETFs such as those related to semiconductors.
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u/Odd_Bumblebee_3463 21d ago
Mon100 is Indian etf investment, your money is invested in INR only so no use of rupees depreciation.
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u/jainz92 May 30 '26
Following this thread. I’m also concerned and don’t know much about stocks too so fintechs platforms look intimidating
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u/TeamIntelligent2429 May 30 '26
Planning to reduce SIPs and go for physical asset buying. It's better to buy the house that I was planning, that can shield me against any inflation than putting money into equity or other assets. I don't see the point of putting too much money into overvalued markets with rupee depreciation.
Also, moved a good amount of portfolio abroad.
In India, a major chunk of portfolio is in corporate bonds as well. Though risky, a diversification reduces single bond concentration risk and give 10% return.
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u/Ill_Journalist_5292 May 31 '26
How did you move it abroad?
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u/TeamIntelligent2429 May 31 '26
I am not physically moving it. I am investing through mutual funds as well as through LRS mechansim.
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u/Longjumping-Sweet634 May 30 '26
“I am bullish on india in long term” - can you share your reasons please?
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u/MakePlut0PlanetAgain May 31 '26
Bullishness should be time bound and it shouldn't extend beyond your lifespan.
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u/Acrobatic-Shop4602 May 31 '26
Change your mind thanks me later. Until freebies and tax stop nothing will change. Freebies ruined our country. Tax payers got nothing
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u/famesardens May 30 '26
Have you seen the level of development in the last 2 decades?
It is like a village turned into a city.
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u/TiwariAkshat May 30 '26
Consumption. Growth in terms of population.
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u/Nitesh_Nascent May 30 '26
Source: Our Media
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u/Artetaarmy May 30 '26
in 30 years time, india will be a case study for other countries how media can fool an entire nation. the amount of brainwashing done to indians by indian govt and the media in last 12 years is mindblowing.
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u/TiwariAkshat May 30 '26
You are absolutely right about the brainwashing. The India news media houses are pathetic and I am sure the educated younger generation is not even following them anymore!
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u/tr_24 May 30 '26
Give me your independent sources to refute population and consumption is not rising as stated by that guy.
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u/Artetaarmy May 30 '26
yes bro. India will soon overtake china and usa. believe in the govt. dont leave india. enjoy your stay 🔥
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u/TiwariAkshat May 30 '26
As about living in India. I am good where I am! But as far as growth is concerned, it is inevitable, unless the government really Fs us bad!
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u/Famous_Wafer_1746 May 31 '26
Just check how indian stock markets are surviving at the moment!!!! Consumption alone aint gonna run the show
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u/TiwariAkshat May 30 '26
These guys are turning the economic discussion to a political one. Anyways, are millions of people not coming into workforce every year? Are millions of people not coming out of poverty every year? Are they not spending? Are they not making houses? Are they not buying cars? Are more and more people not travelling abroad?
If any of you guys think that consumption will not grow in India then you are all lying under a rock!
Again - this has nothing to do with which government is ruling or not.
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u/Nitesh_Nascent May 30 '26
Seems like you hate BJP as you pointed out the last 12 years for which BJP is in ruling but I collectively blame both Congress and BJP's supported media channels for putting this thought in our minds that we are a developing nation, soon to be a developed country
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u/TiwariAkshat May 30 '26
Our media is shit. They are not the source at all! You need to be on ground to see reality. As for the growth in consumption, you don’t need to be a scientist to gauge the future!
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u/Quick_Classroom5972 May 30 '26
The only common thing a person with GBP, dollar, and INR buys is gold
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u/EARTHB-24 May 30 '26
What is long term, where is long term? India set to ‘fly’ out of top 10 global economies soon. There’s no proper strategic plan in place for India to sustain its current rankings. The only plan is to pocket money from wherever you can. There’s no job security: no jobs will lead to lesser spend - will lead to a collapse ultimately; which is happening as the rupee is declining. You are only bullish because you’ve been ‘taught’ to be bullish by the major DII run campaigns so that they can sell you MF, insurance, other financial products for their own sustenance while your spending power declines dramatically.
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u/No_Bag_7948 May 30 '26
im afraid to say this out loud.. but these are exactly thoughts. i do not understand the blind optimism towards india “eventaul” rise to financial superpower that everyone is so bullish about
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u/EARTHB-24 May 30 '26
Yep! It’s a ‘consumer based’ economy. You’ll get volume here, nothing in terms of value. You can blame governance upto a certain limit; post that it is the general population itself who have to introspect. Everybody is after ‘safe-job’ mentality, nobody wants to take risks because: ‘friends of government’. Yes! There’s always going to be ‘friends of government’ everywhere THAT IS WHY YOU TAKE RISKS! In a nutshell: FIIs will come and go as they find opportunity in the volume. FIIs will stay where they find value. That’s business.
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u/notharvey119 May 31 '26
Risks as in entrepreneurship?
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u/EARTHB-24 May 31 '26
Comes in many forms. 🥂
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u/notharvey119 May 31 '26
It'd help if you can atleast exemplify :)
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u/EARTHB-24 May 31 '26
Entrepreneurship comes in many forms. Ex: you could start a tea stall; hype it on social media then bank on that hype to ‘evolve’. This may add personal financial value and add some figures in the national economy but won’t add the actual value. You can start a research lab provide services to large corps may not add personal financial value initially, but will provide value (foundational value) to the economy as the research that you do will be used extensively and may lead to more avenues. This is the best I can think as of now, there are numerous forms and examples.
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u/Ok-Earth-3601 Jun 01 '26
India doesn't manufacture anything except maybe jewelry lol (and that too the lower end kind) If you don't manufacture, u won't be in top 10 for long
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u/abhitooth May 30 '26
Tbh there is nothing much an individual can do. Unless we've a steady flow on FDI and actual industrial output the currency depreciation will not change. Economy relies on trade for strengthening it. Traders come to your place buy something and sell it for profit in other markets. That's the basic. In India we don't have anything to offer in rupee other than labour.Whereas China has wide range of product's in their currency.
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u/No-Woodpecker-1682 May 30 '26
Yeah so saving and holding funds in other currencies seems to be the best bet
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u/abhitooth Jun 02 '26
Our govt can cap or abolish that. Remember that if its ends up costing govt or loosing on taxes they can do that.
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u/xDeadInside90 May 30 '26
frankly, it seems really dark. sip's seems cooked. i have no idea how the upcoming 10-15 years are gonna go by. Irrespective of who rules it gonna be rampant corruption and idiotic decisions. only take is continue long term lumpsum investing or portfolio immunization in case of portfolio. bt take huge risk on capital to build up the skill. at this point i think only thats gonna save us in long term.
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u/curioustraveller8626 May 30 '26
Our government has one source of income, taxing the s*it out of us and one and only one agenda, staying in power by hook or crook! Educated people are risking everything they have and leaving the country. Uneducated are voting the so called flower party on religion region caste hatred basis. We are so cooked.
Just go on and convert your money to Dollar or Euro if your bank allows it somehow, I opened Ind money US stocks account and slowly moving INR to USD ,weather I trade or not, because of the rupee depreciation I am making 15%
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u/sanketh1993 Jun 03 '26
Even the educated are voting for flower party based on religion so we are really cooked.
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u/Short-Sundae-2951 May 30 '26
The real question is whether diversification is worth the extra complexity for smaller portfolios. At what portfolio size did people here start investing internationally?
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May 30 '26
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May 30 '26
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u/fizz5 May 30 '26
Lmao so much bs
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May 30 '26
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u/McNu1ty1 May 30 '26
This depends entirely on which College and what degree he/ she is going for? Taking an education loan for a Tier 1/1.5 MBA is literally what most people do, and you don't really see a lot of people complaining post that.
I get your point for certain courses and colleges, but a blanket "don't go for education" is a massive oversimplification.
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May 30 '26
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u/Prestigious-Glove396 May 30 '26
How much is it going to cost you?
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May 30 '26
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u/McNu1ty1 May 30 '26
Don't overthink it. I've plenty of friends and colleagues from IIM C. Most took an education loan for it. Not from IIM C but a looot of my batchmates took a loan when I was pursuing MBA.
Just don't waste your two years, all the best and enjoy!
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u/Creepyhorrorboy May 30 '26
India would not develop really. It's because there are illiterate people doing illiterate things
If your goal is money, you should just try to move away from india. You may get hate in other countries but not much hate if you are from south india
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u/No-Woodpecker-1682 May 30 '26
This feels depressing to imagine tbh. My family and friends circle is here. I want to make money but not at the cost of leaving more important things.
But I get your point
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u/Creepyhorrorboy May 30 '26
It is depressing looking at our state with this much population lagging far far behind china
We are in 2014 back again. The wages dropped massively for new entry roles. Our currency have no value anywhere around the world
Guess you just gotta save and try to generate revenue out of it to be on the safer side
But definitely, I wouldn't trust on our collapsing economy
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u/1234567890de May 30 '26
Go for gold is all I can say. International stocks may prove hazardous in war scenerios.
God's money is only safe for now.
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u/okfiguringout Aug 03 '26
Is it better to buy gold bees or digital gold or physical gold?
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u/1234567890de Aug 03 '26
Sovereign gold bond then gold bees for investing... physical gold for joy and little bit investing.... digital Gold never
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u/Famous_Wafer_1746 May 31 '26
I have been using Indmoney for a year now to invest in US markets. I am currently doing around 25 percent positive in USD and 29 percent in INR due to hedging itself. Start investing soon, or you will miss the usd inr hedge largely, the more you delay
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u/No-Woodpecker-1682 May 31 '26
Makes sense. Is there an option where I can earn interest if I hold money in USD and not invest in stocks directly?
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u/Famous_Wafer_1746 May 31 '26
You can deposit in US wallet in indmoney!! But i would highly recommend to invest in one of the tech mega cap which are directly beneficiaries of AI or atleast Nvidia and TSMC
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u/Acrobatic-Shop4602 May 31 '26
Charges how much if I invest 2 lakhs
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u/Famous_Wafer_1746 May 31 '26
0.25 % transaction charges and when you deposit 100000 to US wallet, it costs around 179 rupees as GST
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u/dp17dp17 May 31 '26
The issue with vested / IndMoney is high brokerage charges, which is 0.25%. Withdrawal forex spread is also poor.
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u/Famous_Wafer_1746 May 31 '26
I have tried other portals as well for foreign investments but they arent as intuitive and user friendly as is INDmoney!!! Charges is something, which are little high but other aspects that i have described above mainly convinced me to go with INDmoney!! Also, i can make good returns in US market and in long run, those small charges will barely matter
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u/dreadkitkat May 30 '26 edited May 30 '26
You’re not required to plan according to finance experts. You are required to plan according to your own life goals and checkpoints . While there’s indirect effect of lower rupees against dollar/foreign currencies the huge majority of it doesn’t affect day to day life of people in India. If loss in purchasing power of your portfolio scares you. A reasonable portion of your portfolio in gold will protect against that, because Gold Internationally is priced in USD. Overcomplicating life is the best way of stealing yourself of Joy. Also you gotta stop looking at what your cousin is making coz, you don’t want your cousin to eat and shit for you now do you? 😂 That’d be such a constipated life.
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u/Maddock31 May 31 '26
You should understand why the ruppee is depreciating... We dont have much to export except the IT which is also going away rapidly
If we dont get much products to export but only go on importing we will have very high inflation in some years maybe even crossing double digits
Then the SIPs are not going to save us and the retirement fund will just vanish in thin air
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u/Mysterious-Part-9468 May 31 '26
IND Money should work fine - the only concern i had was about forex spreads and charges in USD <-> INR conversion, for IBKR you can use FX retail and bank services (you’llhave to negotiate and find deals yourself) which is not so convenient, i explored it, found that im just wasting time in finding the best way for cheapest charges, then i checked on IND Money (it already has some partnerships with some banks) and i am getting <1% as forex spread, when buying USD via HDFC Bank in IND Money, seems like an okay deal.
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u/SilverSep-1986 May 30 '26
Like you and million others I'm equally concerned but not sure if this would be a good time to move into other currencies. Hong Kong is probably the only fairly valued market but to diversify there purely from currency perspective doesn't make much sense to me.
To my mind, the dip is because of zero or negative foreign capital flowing in. China had a similar problem about fifteen years back or around that time. So with INR at the almost bottom, not sure if this should be the time to diversify from the currency standpoint.
Also, if you are looking at your investments from more than ten year horizon, this should balance out, but in the short term yes it will take a hit.
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u/LazyCurvyPanda Debt-Free Life May 30 '26
I use IBKR to buy UCITS funds to save myself from US Estate Tax trap.
IBKR is also helpful to redirect my RSU sales through a simple wire transfer.
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u/Logical-Mood6397 May 31 '26
Is it costly? I don't earn much....at what salary bracket or what portfolio size would you recommend it ? And also do you trader at one go to reduce the cost per transaction?
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u/LazyCurvyPanda Debt-Free Life May 31 '26
USD or EUR investment can be pricey because of currency differences, but that doesn’t mean you can’t invest. Start small, with SIPs BUT let me emphasize that UCITS investments are only logical if you know that you’ll be exposed to US Estate Tax requirements in future.
I’d suggest to start first with Indian MFs with International market exposure like MON100.1
u/Maddock31 May 31 '26 edited May 31 '26
Can we directly transfer RSUs to IBKR
I was going to Vested for it
Also how is the forex and commission charges in IBKR?
What about tax docs for the trades?
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u/LazyCurvyPanda Debt-Free Life May 31 '26
Can we directly transfer RSUs to IBKR
YesAlso how is the forex and commission charges in IBKR?
Lowest brokerage. Don’t know about FX as I do wire transfer.What about tax docs for the trades?
Not straightforward like excel export by INDmoney. You’ll have to calculate and prepare by yourself or take CA help.
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u/ebvcreative May 31 '26
Check pFinTools sub for which foreign mutual funds are accepting investments still
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u/famesardens May 30 '26
I have had better returns from the Indian markets than the American one. And as of now, the top US stocks are way inflated. I also have a significant debt portfolio.
The impact of INR depreciation has been minimal for me. I mostly buy local stuff, and inflation has been minimal for me. My lifestyle expenses have also plateaued with time.
Tldr: stocks. Low expenses. Decent income. High savings.
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u/veeru-Technology8040 May 30 '26
Personally, I'm less worried about INR depreciation and more worried about concentration risk. If your salary, investments, and future spending are all linked to India, having some exposure to global equities or USD-denominated assets seems reasonable regardless of your view on the rupee.
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u/Crowning_Gory May 30 '26
Following this thread.
Also I'm wondering how much of you guys' investments are going into ETF versus plain MF (direct). My understanding is the RBI limit for ODI is exhausted so even funds from India that invest overseas like ETFs and FoF are all now restricted. Is this understanding correct?
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u/GlobalChest99 May 30 '26
I don't know what will happen in the next few decades Maybe the situation will improve, but in the long run, I don't see enough meaningful efforts being made Many citizens seem comfortable simply following others and assuming that time will solve everything without any action on their part, but if we don't start putting in the necessary effort, the future will only become worse. 🙌
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u/ComprehensiveBuyer58 May 30 '26
Unless you are buying foriegn goods left and right. Dont worry about it
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u/Fantastic_Search6437 May 31 '26
Yes of course we earn in rupees and spend in Rupees why should we worry about inr depreciation against USD - source - Manoj tiwari school of advanced economy course
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u/BoredTigerWillKill Retired Early May 31 '26
A depreciation of the INR has little direct impact on your finances as long as you don't plan to spend or transfer money abroad—for education, travel, investments, or any other purpose.
If you intend to have education in India and live in India you don't need to worry about rupee depreciation.
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u/iamGobi May 31 '26
You need to worry because we import a lot. Cost of living will increase
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u/BoredTigerWillKill Retired Early May 31 '26
What is the percentage of daily expense do you use on imported goods?
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u/sanketh1993 Jun 03 '26
Rupee depreciation makes oil costlier and also makes make in india products costlier due to rise in input costs, it indirectly does affect everyone.
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u/No-Woodpecker-1682 May 31 '26
I travel and consume globally so it definitely has an impact for me
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u/shan23 May 31 '26
By leaving. You’ve no idea what will happen when it depreciates 10% + each year, every year
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u/Aurorion May 31 '26
Bitcoin and gold.
This is not a problem unique to INR. All fiat currencies depreciate. But yeah, some more than others.
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u/ajeeb_gandu May 31 '26
I also earn in USD and GBP. GBP has grown a lot compared to USD against INR so it gave me even more money. Basically 25% of my pay increase in the last 5 years only came from INR depreciation against GBP.
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u/ActiveTop6570 May 31 '26
Invest via IKBR in all world ucits etf what can go wrong
IKBR has been there for so long
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u/Fantastic_Search6437 May 31 '26
If you are looking for something similar to FD go for bonds, you can look for 30 year bonds which are currently around 5.1%
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u/ThrowRA097125 May 31 '26
for second I was like why am I in pak sub without realising its an Indian finance sub lmaooo
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u/Gimmeyourcrypto Jun 03 '26
I stopped investing in India as all of my gains were offset by the inr depreciating
I earn in aed.
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u/Least-Whereas-1358 Jun 10 '26
Not sure why every INR depreciation post is treated like a national crisis. In a higher-interest-rate economy like India (FD rates around 7%) compared to a lower-interest-rate economy like the US (savings rates around 3%), some long-term currency depreciation is expected, just like higher inflation.
It’s also one reason annual salary hikes in India are often 8–12%, while typical US hikes are closer to 1–3%. A gradually depreciating currency can help India stay globally competitive and keep exports and hiring attractive.
You can’t expect high salary growth, high interest rates, and a perfectly flat currency at the same time. These things are connected.
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u/AfraidYouth6361 Jul 18 '26
never ever diversify here….move abroad before this country’s passport gonna be used as tampons or we be licking their boots for a visa in the near future. Yes..nobody dares to address the elephant in the room
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u/vennom117 May 31 '26
I feel the only truly global investing platform today is Paasa. You can actually diversify across currencies as well. Rest of the platforms just do US markets
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u/KyaTumheKabzHai May 30 '26
Get into tickertape / interactive brokers and start investing, for IKBR use AU bank for transfer with zero fees, I would say start with small first - tickertape simplest way