The Role of Exchange Rates in Stock Portfolio Performance

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While most investors track stock performance, the changes in exchange rates often go unnoticed, despite their significant impact on portfolio returns. Over the past five years, the US dollar has appreciated by more than 14% against the Indian rupee. For those invested in US markets, this shift has added a meaningful boost to their overall gains. To understand how this works and why it matters, watch our latest video.

The US market also offers strong companies, better regulation, and long-term performance. It makes up over 60% of the global equity market and is home to 9 of the world’s 12 trillion-dollar companies. Despite short-term differences, over a longer period, the S&P 500 has beaten most global indices. For investors seeking both growth and resilience, factoring in currency dynamics is not just smart—it’s essential.

Disclaimer: Investments in securities markets are subject to market risks. Read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory.

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