The unprecedented slide in the rupee has not only played havoc with the common man’s budget, but also whittled his investment portfolio. Neither equity nor debt markets have been spared. So, while stocks across the board have taken a beating and equity mutual funds are feeling the heat, debt funds have also taken a hit. Their yields have soared after the RBI’s attempt to stem the rupee’s fall by squeezing liquidity. While it isn’t easy to predict the extent to which the rupee will fall or whether it will bounce back, the consensus is that the uncertainty will last for some time. Hence, your investments will continue to be exposed to the currency’s vagaries. To insulate your portfolio from the rupee’s impact, make sure you hold some investments that benefit from its fall. Though it may be a little late to invest in such avenues, here are some options that bank not only on the rupee’s weakness but on their inherent strengths.
