Feeder Fund Mechanism
Returns in INR from a USD-denominated fund: asset appreciation and currency impact
Input parameters
Investment details
| Investment Amount (Rs lakhs) | 100 |
| Currency Rate at investment | 90 |
| Investment Amount ($) | 1,11,111 |
| US Fund NAV at investment | 10 |
| # of Units | 11,111 |
Redemption details
| # of Units sold | 11,111 |
| % $ returns of Fund | 20% |
| US Fund NAV at redemption | 12.00 |
| Redemption Amount in $ | 1,33,333 |
| Currency Rate at Redemption | 93 |
| Redemption Amount (Rs. lakhs) | 124 |
Returns breakdown
| % Returns in INR | 24% |
| % Returns from Asset Appreciation | 20% |
| % Returns from Currency | 3% |
Total INR return combines fund performance in USD and the change in USD/INR rate between investment and redemption.
About this calculator
Feeder Fund Mechanism • Funds
Feeder funds invest in an overseas fund. Your INR outcome depends on both the underlying fund performance and currency movement.
This calculator breaks the return into asset appreciation and currency impact so you can see where gains/losses came from.
Please note, returns assumed here are absolute (and not annualised return), and this calculator is primarily meant to help demonstrate how feeder funds give you both currency & economic diversification.
How to use
- Enter INR investment, FX rate at investment and redemption, and USD fund return/NAV inputs.
- Review investment details (units) and redemption details (value).
- Use the returns breakdown to understand asset vs currency contribution.
Key assumptions
- Assumes clean conversion at the chosen FX rates; does not include transaction costs/spreads.
- Taxation and remittance costs are not included.
