'You’re richer in INR but poorer in dollars': What an IIM alum's CAGR math just exposed

Think Indian stocks have beaten the world? Think again once you factor in the silent killer of your global returns: currency depreciation. A data-led breakdown by IIM alumnus Ashitosh Lewate reveals how U.S. tech stocks quietly trounced Indian equities over the last decade, thanks to one overlooked metric—the falling rupee.

Lewate, in a post, crunched the numbers on Nifty 50, Sensex, S&P 500, NASDAQ, and gold across 1-, 3-, 5-, and 10-year periods. On the surface, Indian equities held strong, even outperforming global indices in the short term.

But that’s only half the picture.

Most returns are quoted in local currency, masking the real cost of cross-border investing. "The rupee depreciates ~4% every year against the USD. This often goes unnoticed,” Lewate wrote.

So he adjusted the returns to reflect INR depreciation—and the results flipped.

What changed?

NASDAQ emerged the clear long-term winner: ₹1 lakh grew to ₹6.6 lakh in 10 years (17.3% CAGR).

Gold proved the best short-term hedge and a strong 3-year performer.

Indian equities (Nifty 50, Sensex) remained steady, but not dominant.

Lewate’s charts show that while Sensex and Nifty performed well in INR terms, their edge fades when measured in USD-adjusted terms. This matters for Indian investors exposed to global opportunities—or vulnerabilities.

His takeaway? Diversification isn’t just about spreading across assets—it’s about spreading across currencies. “Global diversification is essential. Currency depreciation silently eats into returns,” he warned.