US could be a good international hedge

If the slowdown happens, the US market indices, which have already lost quite a lot of ground in the last six months, could lose even more ground

Devangshu Datta 

Devangshu Datta

It has become easier to invest in overseas equities and bonds. The tax incidence isn’t bad, now that Indian equity holdings are also subject to long-term capital gains tax. Given that the next six months look uncertain for the Indian markets, should we be looking abroad to create a hedge against Nifty volatility? Here are some thoughts.

Assume that, as a relatively uninformed investor, you would be passively tracking exchange-traded fund (ETFs) in whatever markets you follow. There isn’t much point in looking at other emerging markets (EMs) as hedges. In 2018, EMs fell in ...

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First Published: Fri, January 11 2019. 00:36 IST