There’s more to investing in Indian equities than the rupee
Past performance is no guarantee of future performanceand that applies even on the downside
The email that I got on Friday the 13th (of December) was ominous. A client from Singapore wanted to call me over the weekend to discuss his portfolio. Like most non-resident Indian (NRI) clients, Venky, too, had a decision to make regarding a portion of his money—whether to invest in equities in his home country (Singapore, in his case) or in India. For 2013, the Singapore Straits index had fallen 3% while the Nifty (the 50-stock index on the National Stock Exchange in India) had risen 4.5%. I started feeling relieved till I found out that the Singapore dollar had risen 10.5% during the year. In comparable terms, despite the fall in the local stock index, Venky was actually marginally better off remaining invested in his home country in 2013.