Samco Wealth has advised Indian investors to allocate capital into two US sector-specific funds for a minimum of two years to safeguard against currency depreciation and energy shocks. The strategy leverages dollar-denominated assets tracking the S&P 500 to generate returns while acting as a defensive cushion. In Samvat 2082, the domestic Nifty and Sensex both fell over 10% amid rising crude costs, while the energy fund jumped roughly 55%. Resident individuals can acquire these foreign securities through platforms utilizing the Reserve Bank of India’s Liberalised Remittance Scheme.
Key points
Investing in dollar-denominated US exchange-traded funds helps domestic portfolios hedge…: Investing in dollar-denominated US exchange-traded funds helps domestic portfolios hedge against ongoing depreciation of the Indian rupee.
Exposure to energy giants like ExxonMobil and Chevron can mitigate domestic market risks…: Exposure to energy giants like ExxonMobil and Chevron can mitigate domestic market risks driven by surging crude oil prices.
Indian retail investors can legally purchase these US-listed sector funds by utilizing th…: Indian retail investors can legally purchase these US-listed sector funds by utilizing the Reserve Bank of India's Liberalised Remittance Scheme.
Sources checked by our analysis pipeline: 1
US ETFs to buy: Indian investors looking to diversify beyond domestic equities may consider adding exposure to US markets, particularly as currency fluctuations and geopolitical uncertainty continue to influence investment returns. In its Samvat 2083 investment strategy, Samco Wealth has recommended two US-listed exchange-traded funds (ETFs) as long-term portfolio hedges: the Energy Select Sector SPDR Fund (XLE) and the Health Care Select Sector SPDR Fund (XLV).
The recommendations target two risks that affected Indian investors during the previous Samvat — rising crude oil prices and a weakening rupee. Samco has assigned potential upside of 47% to XLE and 60% to XLV, with a suggested holding period of at least two years.
Benchmark indices Sensex and Nifty closed in positive territory on Monday, the first day of Samvat 2083, supported by easing crude oil prices and buying interest in heavyweight banking and financial stocks.
The 30-share BSE Sensex advanced 107.25 points, or 0.13%, to finish at 81,106.65. During the session, the index gained as much as 340.01 points, or 0.41%, to touch an intraday high of 81,339.41. Similarly, the NSE Nifty…
Market activity shows Ferrexpo equity facing downward pressure during today's trading session. Current reporting indicates that trading movement remains negative while additional details concerning the slide have not yet emerged. Observers await further updates to understand the specific drivers behind this downward performance.
Regional market participants drove strong momentum across domestic equities, pushing the Jakarta exchange into firmly positive territory by the closing bell. This solid upward push reflects sustained buying interest throughout the daily trading session. The performance demonstrates continued strength for local shares as market activities wrapped up for the day.