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How do I convert a foreign investment return into a rupee return?

For a simplified unhedged case, use (1 + foreign-asset return) × (1 + currency return) − 1, with consistent dates and quotation.

MF Analyser EditorialPublished 26 Oct 2026 · Updated 26 Oct 2026 · IST · 1 min read · AI-assisted article

THE DIRECT ANSWER

How do I convert a foreign investment return into a rupee return?

For a simplified unhedged case, use (1 + foreign-asset return) × (1 + currency return) − 1, with consistent dates and quotation. Here the currency return means the foreign currency’s change in rupees. Hedging, cash, expenses and valuation timing can alter a real scheme’s result.

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Explained on 26 October 2026. This is an educational answer drawn from the dated article below; examples are hypothetical unless a specific source observation is identified.

How it works

Asset performance and currency conversion act on the same investment sequentially, so simply adding percentages misses their interaction. A dollar rise against the rupee can offset part of a dollar-asset loss, while the opposite currency movement can amplify it. Neither effect is a promise about future exchange rates.

A simple example

If a hypothetical dollar asset loses 10% and the dollar rises 3% in rupees, 0.90 × 1.03 − 1 equals minus 7.3%. If the dollar instead falls 3%, 0.90 × 0.97 − 1 equals minus 12.7%, before costs and taxes.

What to check

Use matching asset and exchange-rate dates.
State the currency quotation and hedging assumption.
Do not substitute a US benchmark move for the actual NAV return.

Read the full event and evidence

The 22 October Tech Sell-Off: How a US Headline Reaches an Indian Fund explains the original event, its dates and the supporting documents. Event context: US session of 22 October 2026.

Sources & supporting evidence

Read the dated documents and reporting behind this explanation.

Our source standards · Report a correction

For education and general information. This article does not provide personalized investment advice. Investments involve risk; past returns do not guarantee future performance. Check current scheme documents before acting.

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