Make money even as rupee falls

The Indian Rupee has been on a losing streak against the dollar, which is a point of worry for the domestic investors. Many investors are looking for potential opportunities and ways to reap returns in this environment. We have evaluated the possible opportunities that one can look into in the current market situation where the Indian Rupee is losing its shine.

Below are some of the ways to benefit even from Rupee’s fall

Invest in Pharma and IT stocks or funds: This will be one of the key sectors where investors can focus on. Investment in these stocks or funds are expected to benefit from the rupee depreciation. That is sectors which are export-oriented such as information technology and pharma sector. These sectors earn a major part of their revenues in US dollar, so every dollar they earn through exports will be valued more in rupee terms. So investors should look into the fundamentals of these companies and invest in the funds that are a bit concentrated towards these sectors.

Invest in international mutual funds: International funds are also one of the options which investors can choose to cope up with the long-term depreciation of the rupee. As the rupee falls against the dollar, the fund's net asset value increases and the investment earns more in the rupee terms. This way you can hedge against the currency fluctuations.

Invest in Dollar-denominated bonds: Investing in dollar-denominated bonds of Indian firms is another way by which investors can hedge against falling rupee. But investors should always remember to check the business results, market leadership, foreign currency revenue stream and high credit rating of these firms.