Asset Performance in MUR Terms — Indexed (2016 = 100)
Higher = better protection for MUR savings. Toggle assets on/off. Log scale (Bitcoin dwarfs everything on linear).
Protection Strategies Ranked by Practicality
1. SGD-Denominated Assets (Not Just Cash)
SGD is the best currency for MUR protection. But instead of holding cash, consider SGD-denominated assets: Singapore Government Securities (SGS bonds yielding ~3%), SGD REITs (5-7% dividend yield), or STI ETF. This adds yield on top of FX protection.
Pros
- Lowest volatility among all options (3.5%)
- SGD has strong fundamentals (MAS manages inflation well)
- Add yield via SGS bonds or REITs
- Singapore is a trusted financial hub with rule of law
Cons
- Lower total return vs equities/gold
- Bank transfer fees from Mauritius
- Currency conversion spreads
- SGD is still a fiat currency — subject to central bank policy
2. S&P 500 Index ETF (USD-Denominated Equities)
The S&P 500 returned +426% in MUR terms over 10 years — meaning a MUR saver who bought an S&P 500 ETF in 2016 would have 5.3x'd their money. This combines USD appreciation vs MUR (+33%) with equity growth (+306% in USD). Accessible via international brokers (Interactive Brokers, TD Ameritrade) or USD-denominated ETFs.
Pros
- Highest risk-adjusted return (+426%)
- Diversified across 500 US companies
- Dividends reinvested automatically in total return index
- US market is the deepest, most liquid in the world
- Hedged against MUR devaluation AND Mauritius country risk
Cons
- Requires international brokerage account
- Higher volatility (16.5%, worst year -13%)
- USD conversion fees from MUR
- Capital gains may be taxable in Mauritius
- Not protected against USD inflation (but US inflation is low)
3. Gold (Physical or ETF)
Gold returned +381% in MUR terms — nearly matching the S&P 500 but with no counterparty risk. Gold is the oldest store of value and has zero default risk. Can be bought physically (jewellery, coins) in Mauritius or via gold ETFs (GLD, IAU) through international brokers. Gold in MUR terms = Gold_USD × MUR/USD, so you get dual protection: gold appreciation + MUR devaluation.
Pros
- No counterparty risk (if physical)
- Universal store of value — recognized everywhere
- Negative correlation with equities in crises
- Physical gold accessible in Mauritius (jewellery shops, banks)
- Hedge against both currency devaluation AND systemic risk
Cons
- No yield/dividends (opportunity cost)
- Physical gold has storage/security costs
- Gold jewellery has markups (20-30% above spot)
- ETF gold requires international brokerage
- Price can be volatile in short term
4. Swiss Franc (CHF) — The Safe Haven Currency
CHF strengthened against BOTH USD and MUR over 10 years. Switzerland's political neutrality, strong rule of law, and SNB's inflation-fighting track record make CHF the ultimate "safe haven" fiat currency. Better than USD or SGD for pure currency preservation, but harder to access from Mauritius.
Pros
- Best performing safe-haven currency (+67% MUR)
- Switzerland's low inflation and political stability
- SNB has strong foreign reserve buffers
- Lower volatility than gold or equities
Cons
- Hard to open Swiss bank account from Mauritius
- Negative interest rates era (though reversed in 2023)
- Still fiat — subject to central bank decisions
- Lower return than equities or gold
5. Bitcoin (High Risk, High Reward)
Bitcoin turned $430 (Jan 2016) into ~$60,000 (Jun 2026) — a +13,853% return in USD, or +18,490% in MUR terms. But with 894% annual volatility and a -73% drawdown in 2018, this is a speculative bet, not a savings protection strategy. Consider a small allocation (1-5%) if you have high risk tolerance.
Pros
- Accessible from Mauritius via exchanges (Binance, Coinbase)
- No counterparty risk (self-custody)
- Fixed supply (21M coins) — cannot be debased
- Extraordinary historical returns
Cons
- 894% volatility — can lose 50-70% in a year
- No intrinsic value or yield
- Regulatory risk (Mauritius FSC warnings)
- Not a "protection" strategy — it's speculation
- Custody security risk (hacks, lost keys)
6. Diversified Portfolio (Recommended Approach)
Rather than choosing one asset, spread risk across multiple:
40% S&P 500 ETF (growth engine),
30% Gold (crisis hedge),
20% SGD assets (SGS bonds or SGD REITs — stable yield),
5% CHF (safe haven cash buffer),
5% Bitcoin (asymmetric upside bet).
This portfolio would have returned approximately ~350% in MUR terms over 10 years with significantly lower volatility than any single high-return asset.
Pros
- Diversification reduces volatility
- Multiple uncorrelated return streams
- Gold + equities offset each other in crises
- SGD component provides stable floor
- Small BTC allocation for upside optionality
Cons
- Requires multiple accounts/brokers
- More complex to manage
- Rebalancing needed annually
- Tax implications across jurisdictions