Over the past decade, Indian equities have generated strong returns, with many portfolios doubling in value. However, the rupee has steadily depreciated against the U.S. dollar—falling nearly 30% over the same period. This gap between nominal growth and actual overseas purchasing power is often overlooked, yet it can seriously erode long-term wealth. To see how this plays out in practical terms, watch the video below for a simple breakdown.
Currency depreciation shows up directly in life goals that involve foreign expenses. U.S. university tuition that cost ₹15 lakhs a year in 2015 is now over ₹21 lakhs, purely due to exchange rate movement. Overseas medical procedures and European rentals have followed a similar trend, rising sharply without any change in the underlying dollar or euro price.
Most investors remain heavily concentrated in rupee assets, leaving them exposed to this hidden risk. Offshore diversification offers a natural hedge while also opening access to sectors and global companies missing in Indian markets.
Disclaimer: Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.
