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Rupee at record low: Don’t ignore international investing for hedging currency risk
MINT· 2025-12-07 11:03
Core Insights - The depreciation of the Indian rupee to a record low of ₹90 against the dollar highlights the importance of hedging investment portfolios against currency risks, especially as Indians increasingly spend in foreign currencies for various needs [1][18] - The rupee has depreciated by 5% against the dollar recently, compared to its historical annual depreciation of 2.5-3% [1] Investment Options - Domestic mutual funds face constraints due to overseas investing limits, and international ETFs are trading at premiums on domestic exchanges, limiting global diversification options [2] - Feeder funds, which invest in international funds, are available for subscription, but they are actively managed and may not provide the same comfort as broad index investments [3][4] - Foreign broker platforms like Vested and INDMoney offer access to US equities and ETFs, allowing investors to buy fractional shares, thus making high-priced stocks more accessible [5][6][18] - Gift City funds, such as the DSP MF retail outbound fund, require a minimum investment of $5,000 and have unique tax implications, with taxes applied at the fund level rather than the investor level [9][10] Taxation and Regulatory Aspects - Investments made through Gift City do not require reporting under Schedule FA in income-tax returns, making them attractive for Indian investors [17][19] - Standard taxation applies to foreign investments outside of Gift City, with short-term gains taxed at the investor's slab rate and long-term gains at 12.5% [20] Strategic Recommendations - Financial advisors recommend a global allocation of 10-30% in investment portfolios to mitigate the impact of rupee depreciation, suggesting a gradual build-up to avoid market peaks [18][21] - Investors are advised to analyze and select the right fund manager for global funds launched in Gift City, while broad-based ETFs or index funds on foreign exchanges may offer a simpler investment route [22]
Check Out What Whales Are Doing With HOOD - Robinhood Markets (NASDAQ:HOOD)
Benzinga· 2025-11-17 15:03
Group 1 - Significant investors have adopted a bearish stance on Robinhood Markets, with 68% of trades being bearish and only 24% bullish [1] - The total amount for put trades is $468,191, while call trades amount to $1,649,044, indicating a preference for bearish positions [1] - The expected price range for Robinhood Markets over the last three months is between $65.0 and $150.0 [2] Group 2 - Analyzing the volume and open interest of options can provide insights into liquidity and investor interest for Robinhood Markets [3] - Recent options activity shows a notable bearish sentiment, with various trades indicating expectations of price declines [8] - The trading volume for Robinhood Markets stands at 3,588,024, with the stock price currently at $119.27, reflecting a decrease of 2.64% [15] Group 3 - Robinhood Markets is focused on creating a modern financial services platform, offering products like cryptocurrency trading and fractional shares through a cloud-based app [10] - Professional analysts have set an average target price of $159.4 for Robinhood Markets, with individual targets ranging from $135 to $180 [12][13]