What You Need to Know

Gross returns are different from net returns.

The returns advertised on a bank FD (gross) are drastically lower than the earnings you receive at the end
of an investment (net).

Why?

  • Gross returns do not include:
  • • Inflation
  • • Taxation
  • • Currency depreciation

Consider This

Indian Bank FD Current Assets
Investment Amount 96042
Gross Return (as stated) 6.50%
Less: Inflation Rate 5% 2.9%
Less: Income Tax 34.20% 34.20%
Net Return 4.44% 4.32%
Less: Currency Depreciation -
USD Adjusted Return -3.03% 5.55%
Return on Investment (USD Terms) 5.55% 4.55%

*Tax is calculated at 30%

After weighing in income tax, and inflation, your investment
is actually losing money.

What Does This Mean?

Gross returns are not an accurate estimate of your earnings. Thus, meaningful wealth generated from your fixed income portfolio is at greater risk after calculating these factors.

How Does This Affect Me?

Inflation: The Hidden Tax

In many emerging markets, inflation can act as a severe tax that reduces your earning power and increases losses.

Currency Depreciation

With depreciation in emerging markets, your cash and investments will underperform an identical investment in USD.
This can:

  • • Increase risk and volatility in your portfolio
  • • Make it more expensive for you to afford your future abroad
  • • Make it difficult for you to save for your child’s foreign education

What is the Solution?

CA vs. FD

Graph of compounding net returns

Our opportunities in US real estate can help you earn a gross rate closer to your net rate.

How?


USD Strength


The strength of the USD acts as a natural hedge in a foreign portfolio. Why?

The USD is backed by one of the world’s strongest economies with high growth rates.

Investments in USD are not as susceptible to EM currency volatility.

Investing in an appreciating USD helps you earn stronger, consistent returns.



Less Risk with US Real Estate


Protected by the stability of the world’s largest economy and 250 years of property rights, US real estate brings high returns at significantly lower risk.
Many of our projects are focused on non-cyclical asset classes.
Unlike the hospitality sector, which is the worst performing asset class in a down economy, non-cyclical markets are stable, predictable markets with:



Zero Taxation Outside of India


Our products are specifically structured to give offshore investors, including ORIs and NRIs, tax-free income in USD.
What Does This Mean?

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