Does investing in US stocks actually give better returns just because the Rupee is falling?

Published 30 September 2026

Urmila from Pune

I have about Rs 15L to invest and I am looking at US index funds.

I keep hearing that the falling Rupee adds to the returns.

Is this true or just a marketing gimmick?

How does the math actually work for an Indian investor?

Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

Currency depreciation acts as a powerful additional layer of return for Indian investors holding US assets. When you invest in the US from India your returns are influenced by both the underlying asset performance and the exchange rate between the USD and Rs. Historically the Rupee has depreciated against the USD by 4-5% annually.

Back in 2012 the exchange rate was around Rs 53 and today it hovers near Rs 90. This depreciation directly boosts your portfolio value in Rupee terms.

While this is a great benefit it should not be the only reason you invest abroad. The primary reason to invest internationally is diversification and reducing portfolio correlation.

The Nifty 50 and the S&P 500 have a correlation of only about 30%. This means the two markets are sufficiently decoupled and provide a valuable cushion if domestic issues cause Indian equities to decline.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.

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