India, 30 January 2026:
Indian households have traditionally relied on fixed deposits, gold and domestic equities as the backbone of their long-term savings strategy. While these instruments reflect financial discipline and consistency, Marcellus Investment Managers has cautioned that such rupee-only portfolios carry an often-overlooked risk—the steady long-term depreciation of the Indian rupee against the US dollar.
According to Marcellus, historical data shows that the rupee has lost nearly 40 per cent of its value every decade against the dollar. This persistent weakening erodes the real purchasing power of savings, particularly for expenses that are globally priced. Costs related to overseas education, advanced healthcare, international travel and imported goods continue to rise, even when savings grow in nominal rupee terms.
The investment firm underlined that this challenge extends beyond currency movements and is fundamentally a portfolio construction issue. Concentrating savings entirely within India exposes families to a single economy and a single currency. Long-term evidence suggests that portfolios combining Indian and global equities have delivered superior risk-adjusted returns with lower volatility compared to purely domestic portfolios. In effect, global diversification has enabled investors to compound wealth more efficiently without assuming proportionately higher risk.
Marcellus noted that global investing, once considered complex and inaccessible, has become significantly easier for Indian households. Policy reforms such as the development of GIFT City as a tax-efficient global financial hub, simplified norms under the Liberalised Remittance Scheme (LRS), lower long-term capital gains tax on overseas investments, and clearer regulatory frameworks for individuals and corporates have collectively reduced cost, tax and operational hurdles. These measures have positioned GIFT City as the preferred gateway for Indians seeking international exposure.
Commenting on the shift, Saurabh Mukherjea, Founder and Chief Investment Officer of Marcellus Investment Managers, said, “Most Indian families today spend a large part of their income on US dollar–denominated items such as flights, smartphones, OTT subscriptions and foreign holidays. Therefore, it makes sense to also generate a portion of investment returns in US dollars. Especially when the US represents the majority of global market capitalisation, while India accounts for around four per cent, a meaningful allocation to global equities is justified.”
Marcellus clarified that overseas investing is not about chasing foreign markets or short-term opportunities. Instead, it is aimed at protecting long-term savings from currency depreciation, improving portfolio resilience and aligning investments with the increasingly global aspirations of Indian families. Even a modest allocation to global assets can help preserve wealth over time and reduce dependence on a single economy.
Reinforcing its long-term philosophy, Marcellus emphasised that disciplined investing—not speculation—remains central to its approach. As Indian households become more globally connected in their lifestyles and aspirations, the firm believes their investment portfolios must evolve in a simple, sensible and well-governed manner to secure long-term financial stability.
