With growing volatility and declining investment opportunities in India, the significance of investing in foreign currency assets is gaining popularity. The Liberalised Remittance Scheme (LRS) of the RBI enables resident Indians to remit up to $250,000 or its equivalent abroad in the form of debt instruments, ETFs, mutual funds, venture capital funds, and promissory funds. In recent times, as more Indians are traveling overseas, whether it be for business, employment, studies, leisure, medical treatment, or to invest in global markets, the demand for foreign currency is strengthening. In fact, the outward remittances rose by 61.8% YoY to $2.03 billion in May 2022 from $1.25 billion in May 2021. As optimistic as the numbers seem, the truth also remains that investing in foreign funds helps diversify your portfolio and safeguard it against the fluctuating economy; because ultimately, dropping all the eggs in a single basket is risky!
If you are considering investing in foreign currency, look no further than foreign index funds ETFs. These funds are easy to invest in and have lesser leverage-related risks. Contact a wealth management firm --- and discover the benefits and effective ways to invest in foreign currency.