Rupee Depreciation An Investment Opportunity In India

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Raju Menon, Founder, Chairman and Managing Partner of Kreston Menon, speaking at the Ladderup Wealth International launch event.
Raju Menon, Founder, Chairman and Managing Partner of Kreston Menon, speaking at the Ladderup Wealth International launch event.

The world is seeing uncertain economic situations. In times like these, wealth management plays a crucial role in helping you achieve financial security and grow your wealth

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Published: Fri 2 Dec 2022, 12:00 AM

Nair arrived in the UAE from India many years ago where he found opportunities and, through hard work and effort, built a good quality life for his family. As he earns, he saves and, like every NRI, sends a portion of his savings to India. Nair also makes annual trips back home to meet his friends and family and take stock of his investments. Every time, the bankers, real estate agents, friends and family help him with their advice on where he should invest his money. Nair picks those that appeal to him the most.

Today, his portfolio size is large, but scattered across many different asset classes including property, insurance, NSC, post office deposits, bank deposits, PPF with minimal oversight on their performance or risks.

Nair’s story is not very different from many NRIs in the UAE who don’t get time to manage the money they save and send to India. This can be attributed largely to the lack of availability of experts who can offer sound advice and hand-hold operational aspects, making it difficult to ensure their savings get right attention and deliver right returns. And when the rupee depreciates, it gives them a ready excuse for the poor performance of their investments.

The truth however, is that most Indian investments and particularly Indian equity markets over a long period of time, have given extremely good returns in US dollar terms. Even recently, despite the rupee weakening, returns from Indian equity investments have performed better than most of the world. The current rupee weakness, led by global USD strength against almost all currencies, is not driven by India factors, but is more so due to US interest rates rising amidst high inflation. There is a strong possibility that as inflation comes under control and interest rates soften, the situation may reverse. This could lead to USD weakness and a rupee appreciation similar to what we saw in mid 2000s.

That alone, however, will not help NRIs earn good returns from their savings in India. Good returns are a result of good investment strategies based on sound research, disciplined processes and a strong risk management focus among others. As our wealth grows, the need for an expert who can aptly guide in the investment process becomes increasingly important. A guide must be trustworthy and must be capable. He must follow sound principles which can ensure that his ideas and suggestions are appropriate and will keep our money safe while delivering good returns.

At Ladderup Wealth Management, these values and principles have formed the foundation of a wealth management practice that has got us into the top 100 list in India and a large set of very loyal customers, who have trusted us and benefited from our services. Ladderup Wealth, recognising the needs of the large Indian diaspora in UAE, has now joined hands with the Menon family and setup Ladderup Wealth International Limited in Dubai. Regulated by the Dubai Financial Services Authority and based in DIFC, this entity brings much needed knowledge, expertise and guidance to the doorsteps of Nair and so many other Indians in UAE to guide them on their investments. India is poised to be among the fastest growing countries in the next decade and Ladderup Dubai has its mission clear to help the NRI fraternity in UAE to make their money in India work hard for them and reap the benefits of this expected growth. Rupee at 75, a distinct possibility, would be the icing on the cake.


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