US stocks and US equity funds have been quite a hit with Indian investors in recent years. Indians invest in these funds to gain exposure to global businesses (Amazon, Alphabet, Mastercard etc). More importantly, they would like to gain an exposure to the US dollar which has appreciated steadily against the Rupee over the years.
But the risks in owning US equities have become apparent lately, with the Fed on a rate hiking spree and the US economy flirting with a recession. US stock indices have lost 12-15% in one year, while US equity funds have seen losses of 6%-12%. But there has been a sharp rise in yields on US government bonds (treasuries).
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Aarati Krishnan
Aarati is a leading voice in the Indian financial services space. She has been tracking and writing about the entire gamut of financial products and regulations for over 25 years now. She is currently Editorial Consultant for the Hindu Business Line and was earlier a consulting editor for Value Research Online. For her pioneering work in writing on financial services and the economy, she was awarded the Shriram Sanlam award for excellence in Financial Journalism thrice. LinkedIn | Twitter
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