Medium Term Investing In India-III
Currency
The U.S. dollar has been the primary reserve currency used by other countries. The dollar has been strengthening despite the Federal Reserve cutting rates. The dollar is strong when the dollar’s value is high relative to other currencies
The rupee is the worst performer in emerging Asia this quarter, and analysts say that’s because the central bank is mopping up dollars gushing into local stocks and bonds
Methods of Investing
Indian companies which operate in USA
- Weaker rupee might turn things around for TCS, Wipro and Infosys
- Pharma stocks strike it rich over a depreciating rupee
- Rupee depreciation to help boost Indian farm, textile and jewellery exports
Tata Consultancy Services Ltd. is a global leader in IT services, consulting & business solutions with a large network of innovation & delivery centres
Cipla Limited is an Indian multinational pharmaceutical company, headquartered in Mumbai, India. Cipla primarily develops medicines to treat respiratory, cardiovascular disease, arthritis, diabetes, weight control and depression
Invest in US companies through mutual funds
Motilal Oswal NASDAQ 100 Fund of Fund
ICICI Prudential US Bluechip Equity Fund — Direct Plan — Growth
Expert Advice
A good podcast explaining why diversification is important with respect to currency and country.
Opportunities Galore
India aims to become an export powerhouse, for which it might need to devalue its currency to remain competitive on the global stage. If this happens, it might become inevitable that investing all your money in rupees is a very bad idea. China has devalued its currency over time to keep its exports competitive
A weaker yuan makes Chinese exports more competitive, or cheaper to buy with foreign currencies
Note : This is not to be considered as an investment advice. I am not an investment professional and these are not risk free investment strategies
