New Delhi, Dec. 7 -- With the rupee slipping to a record low of Rs.90 against the dollar, the need to hedge your investment portfolio against currency depreciation is back in focus. This matters even more today, as Indians spend increasingly in foreign currency - on overseas vacations, education and other big-ticket needs. While the rupee has depreciated 5% against the dollar, it has historically depreciated 2.5-3% annually. Global diversification benefits from rupee depreciation, as a weakening rupee enhances the value of returns earned abroad.

With mutual funds still constrained by overseas investing limits and international exchange-traded funds (ETFs) trading at premiums on domestic exchanges, the usual paths to global diversificatio...