Don't invest in us markets from india
As of now don’t invest in the US market from India. Here’s why
Date of Sending | Amount sent to US | Amount sent from India | Rate taken by bank | Rate on market | Bank commission |
---|---|---|---|---|---|
01-Jul-2020 | 647 USD* | 50039 INR | 77.34 ↑ | 75.45 | 2.51% |
Date of withdrawal | Amount sent from US | Amount sent to India | Rate given by bank | Rate on market | Bank commission |
07-Dec-2020 | 766.51 USD* | 55204 INR | 72.15 ↓ | 73.78 | 2.21% |
CAGR | 41.95% | 25.30% | Total % of amount taken by bank | 4.72% | |
Absolute returns | 16.49% | 7.59% |
*Actual sent amount is 647 USD, Vested added a bonus of 15 USD due to an offer.
And a Vest purchase fee of 3 USD was deducted. Account balance at this point is 659 USD.
Kept around 9-10 USD for Vest monthly fees, which turned out to be ~ 1 USD.
Hence, the actual invested amount is ~ 649 USD. Hence, 649 is used for CAGR calculations.
Similarly, 756 was used. These are used for absolute return calculations as well.
**In addition to this, while sending money from India to the US, ICICI charges around 1300 rupees and while withdrawing money from the US, Vested deducts 11 USD as withdrawal charges. Both of these combine to around 2000 INR.
One factor affecting this is the USD-INR rate.
Lets just test the numbers with a fixed USD-INR rate of 75 INR per USD.
There will be some approximation, because of no insight into how bank commission works, hence using the existing numbers to bactrack.
Date of Sending | Amount sent to US | Amount sent from India | Rate taken by bank | Rate on market | Bank commission |
---|---|---|---|---|---|
01-Jul-2020 | 647 USD | 49741 INR | 76.88 ↑ | 75 | 2.51% |
Date of withdrawal | Amount sent from US | Amount sent to India | Rate given by bank | Rate on market | Bank commission |
07-Dec-2020 | 766.51 USD | 56216 INR | 73.34 ↓ | 75 | 2.21% |
CAGR | 41.95% | 32.43% | Total % of amount taken by bank | 4.72% | |
Absolute returns | 16.49% | 13.02% |