‘Why convert to USD?’: Finfluencer warns INR returns miss the real story on wealth erosion
He compared this with global benchmarks, stating that a SIP in the S&P 500 would have yielded 8.4%, with lower risk than the Nifty 50. Over the same period, the NASDAQ would have delivered 15.5% returns.
- Aug 27, 2025,
- Updated Aug 27, 2025 8:27 AM IST
INR-based returns quietly erode over time due to currency depreciation. That’s the warning from Akshat Shrivastava, founder of Wisdom Hatch and a widely followed finfluencer, who says Indian investors often overlook the hidden cost of compounding currency loss when evaluating long-term returns.
In a pointed post on X, Shrivastava wrote, “INR depreciates to USD by 3–4% a year. Over time, this compounds and erodes your return.” He cited that while the 20-year CAGR for the Nifty 50 stands at 12.59%, the return drops to 7–8% after adjusting for rupee depreciation.
He compared this with global benchmarks, stating that a SIP in the S&P 500 would have yielded 8.4%, with lower risk than the Nifty 50. Over the same period, the NASDAQ would have delivered 15.5% returns.
“Interestingly, 0 fund managers speak about this,” Shrivastava noted, claiming that much of India’s mutual fund industry is built around increasing SIPs without fully informing investors about the impact of currency depreciation on real returns.
Addressing a common argument — “I live in India, why do I need to convert things to USD?” — Shrivastava responded directly: “Well, it does (A LOT). You just refuse to acknowledge it.”
To make the point, he cited the Pakistan Stock Market in 2023, which delivered 55% returns in local currency. “Was it a great economy?” he asked, adding a sarcastic emoji. But in the same year, the Pakistani rupee fell 23–25% against the dollar, which meant real dollar-adjusted returns dropped to around 24% — roughly equal to the S&P 500, but well below the NASDAQ.
“People read headlines and go away,” he said. “But what they miss is that: currency matters — and if you ignore it, you’re miscalculating your financial future.”
Shrivastava’s post taps into a larger conversation among Indian fintech voices questioning home bias, currency ignorance, and overreliance on domestic benchmarks.
INR-based returns quietly erode over time due to currency depreciation. That’s the warning from Akshat Shrivastava, founder of Wisdom Hatch and a widely followed finfluencer, who says Indian investors often overlook the hidden cost of compounding currency loss when evaluating long-term returns.
In a pointed post on X, Shrivastava wrote, “INR depreciates to USD by 3–4% a year. Over time, this compounds and erodes your return.” He cited that while the 20-year CAGR for the Nifty 50 stands at 12.59%, the return drops to 7–8% after adjusting for rupee depreciation.
He compared this with global benchmarks, stating that a SIP in the S&P 500 would have yielded 8.4%, with lower risk than the Nifty 50. Over the same period, the NASDAQ would have delivered 15.5% returns.
“Interestingly, 0 fund managers speak about this,” Shrivastava noted, claiming that much of India’s mutual fund industry is built around increasing SIPs without fully informing investors about the impact of currency depreciation on real returns.
Addressing a common argument — “I live in India, why do I need to convert things to USD?” — Shrivastava responded directly: “Well, it does (A LOT). You just refuse to acknowledge it.”
To make the point, he cited the Pakistan Stock Market in 2023, which delivered 55% returns in local currency. “Was it a great economy?” he asked, adding a sarcastic emoji. But in the same year, the Pakistani rupee fell 23–25% against the dollar, which meant real dollar-adjusted returns dropped to around 24% — roughly equal to the S&P 500, but well below the NASDAQ.
“People read headlines and go away,” he said. “But what they miss is that: currency matters — and if you ignore it, you’re miscalculating your financial future.”
Shrivastava’s post taps into a larger conversation among Indian fintech voices questioning home bias, currency ignorance, and overreliance on domestic benchmarks.