Business Standard

You can mitigate domestic risks by investing abroad, here's how

Open a low-cost international broking account and invest in low-cost international exchange-traded funds

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Avinash Luthria
Over the past few months, the foreign exchange market has joined the Indian bond market in implying that despite the Monetary Policy Committee’s efforts, India will not meet its commitment of limiting consumer price index (CPI) inflation to 4 per cent till March 2021. But even if India were to have high inflation of 5-7 per cent over the long term, the domestic equity component of one’s portfolio is likely to partially mitigate this over the long term, that is, over many decades. However, neither domestic equity nor domestic real estate can be relied upon to mitigate several country-specific tail

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