Samco Recommends Two US ETFs For Indian Investors To Buy In Samvat 2083

For the upcoming period of Samvat 2083, Samco Wealth has recommended that Indian investors purchase two United States-listed exchange traded funds. Exchange traded funds pool money from numerous investors to invest in a basket of assets like stocks or bonds, and they trade on stock exchanges just like individual equities. The specific funds suggested by the firm are the energy sector exchange traded fund XLE and the healthcare sector exchange traded fund XLV for the portfolio.

The advisory firm highlights that these two specific United States funds serve as long-term hedges. A hedge is an investment position established to offset potential losses that may be incurred by a companion investment. In this particular situation, the two exchange traded funds act against both oil-price volatility and rupee depreciation for domestic participants.

During the evaluation, the firm identified a potential upside of up to 60% for Indian investors looking at these opportunities. Specifically, the institution sees potential upside of 47% for one of the options while outlining the overall spectrum extending to the higher percentage level.

What it means for investors: Market participants looking toward Samvat 2083 now have specific foreign sector options to evaluate for hedging against currency and commodity risks, according to the recommendations released by Samco Wealth.