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Silver lining for investors in international MFs as rupee plunges

Dollar gains help Nasdaq pip Nifty gains over a three-period

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According to data from the Association of Mutual Funds in India (AMFI), new fund offerings (NFOs) in the international fund of funds (FoF) category collected over Rs 5,000 crore in the financial year (FY) 2022.

Abhishek Kumar Mumbai
The one-year performance of international funds is deep in the red but the cut would be deeper if not for the greenback’s red-hot streak.

Sample this: the Nasdaq 100 index is down 25 per cent in one year, while the international funds in India, which replicate this index, are down just 17 per cent.

"The currency depreciation has been much higher than the average this time, resulting in significant downside protection for international funds," said Rahul Jain, senior vice-president-research, International Money Matters.

Interestingly, the rupee's value erosion has helped funds benchmarked to the Nasdaq 100 outperform those benchmarked to the

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First Published: Sep 28 2022 | 5:37 PM IST

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