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How to Invest in Motilal Oswal Nasdaq 100 ETF? | Pros and Cons

How to Invest in Motilal Oswal Nasdaq 100 ETF? | Motilal Oswal Nasdaq 100 ETF Performance | Pros and Cons | SIP and Lumpsum Returns

This article will examine How to Invest in Motilal Oswal Nasdaq 100 ETF. Firstly, we will define what Motilal Oswal Nasdaq 100 ETF is, its advantages and disadvantages, and the performance of Motilal Oswal Nasdaq 100 ETF.

Motilal Oswal Nasdaq 100 ETF

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Here are the details about Motilal Oswal Nasdaq 100 ETF:

  1. Objective:
    The objective of the Motilal Oswal Nasdaq 100 ETF is to provide investors with exposure to the top 100 non-financial companies listed on the NASDAQ stock exchange.
  2. NASDAQ-100 Index:
    The ETF tracks the NASDAQ-100 Index, which is a market capitalization-weighted index that includes the top 100 non-financial companies listed on the NASDAQ stock exchange. The index includes companies from various sectors such as technology, healthcare, consumer services, and industrials.
  3. Domiciled in the US:
    The ETF primarily invests in the securities of companies that are domiciled in the United States.
  4. Stock selection:
    The selection of stocks in the ETF is based on a proprietary stock selection model that identifies companies with high growth potential, strong financials, and a competitive advantage in their respective markets.
  5. Passive investment:
    The Motilal Oswal Nasdaq 100 ETF is a passive investment, which means that it aims to replicate the performance of the underlying index.
  6. Low-cost investment:
    The ETF is a low-cost investment option as it has a lower expense ratio compared to actively managed funds.
  7. Listed on NSE:
    The Motilal Oswal Nasdaq 100 ETF is listed and traded on the National Stock Exchange of India (NSE).

Lumpsum Returns

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Period Invested for₹10000 Invested onLatest ValueAbsolute ReturnsAnnualised ReturnsCategory AvgRank within Category
1 Year20-Apr-229899.40-1.01%-1.01%3.38%223/260
2 Year20-Apr-2110332.203.32%1.65%9.30%165/167
3 Year20-Apr-2015939.7059.40%16.81%20.26%108/132
5 Year20-Apr-1824070.30140.70%19.19%9.15%3/96
10 Year18-Apr-1369977.50599.77%21.45%11.76%3/65
Since Inception03-Mar-11105131.80951.32%21.38%6.59%10/317

SIP Returns

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Period Invested for₹1000 SIP Started onInvestmentsLatest ValueAbsolute ReturnsAnnualised Returns
1 Year20-Apr-221200013355.3111.29 %21.57 %
2 Year20-Apr-212400025114.624.64 %4.43 %
3 Year20-Apr-203600040602.6412.79 %7.98 %
5 Year20-Apr-186000089485.4549.14 %15.99 %
10 Year18-Apr-13120000321879.82168.23 %18.75 %

Pros and Cons

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here is a detailed table summarizing the pros and cons of investing in the Motilal Oswal Nasdaq 100 ETF:

ProsCons
Provides exposure to leading global companiesExchange rate risk:
The ETF invests primarily in US-domiciled companies, and fluctuations in the exchange rate between the Indian Rupee and the US Dollar can impact returns.
Offers diversification benefitsConcentration risk in the technology sector:
Over 50% of the ETF’s holdings are in technology companies, which can result in higher volatility and potential losses in case of adverse market conditions.
Passive investment with lower expense ratioMarket risk:
Like all equity investments, the ETF is subject to market risk, and its returns can be impacted by factors such as economic conditions, geopolitical events, and company-specific factors.
Low minimum investment amountLimited exposure to Indian companies:
The ETF invests primarily in US companies, which means that investors looking for exposure to Indian companies may need to look for other investment options.
High liquidityTracking error:
As the ETF aims to replicate the performance of the underlying index, it may experience tracking error, which is the difference between the ETF’s returns and the index’s returns.

How to Invest in Motilal Oswal Nasdaq 100 ETF?

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  1. Open a Demat and trading account:
    To invest in the Motilal Oswal Nasdaq 100 ETF, you need to have a Demat and trading account with a registered stockbroker.
  2. Fund your trading account:
    You need to fund your trading account with the required amount of funds to invest in the ETF.
  3. Login to your trading account:
    After funding your trading account, log in to your account with your credentials.
  4. Search for the Motilal Oswal Nasdaq 100 ETF:
    Use the search bar on your trading platform to search for the Motilal Oswal Nasdaq 100 ETF. Alternatively, you can search for the ETF by its ticker symbol, which is N100.
  5. Place your buy order:
    After locating the ETF, select the buy option and enter the number of units you want to purchase along with the price at which you want to purchase them.
  6. Confirm your order:
    Once you have entered the details, confirm your order, and the units of the ETF will be credited to your Demat account.

Here is a table summarizing the steps to invest in the Motilal Oswal Nasdaq 100 ETF:

StepsDetails
1.Open a Demat and trading account with a registered stockbroker.
2.Fund your trading account with the required amount of funds to invest in the ETF.
3.Log in to your trading account with your credentials.
4.Use the search bar on your trading platform to search for the Motilal Oswal Nasdaq 100 ETF. Alternatively, search for the ETF by its ticker symbol, which is MON100.

As per your investment horizon and analysis, you can choose the series and click on the buy option to fill in your order details.

5.As it’s an ETF so choose Long term CNC and enter the no. of units choose the market radio button to buy at the prevailing rate. At the end click on Buy to complete the order.
6.Confirm your order, and the units of the ETF will be credited to your Demat account.

FAQs

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  1. Q: What is the Motilal Oswal Nasdaq 100 ETF?

    A: The Motilal Oswal Nasdaq 100 ETF is an exchange-traded fund that tracks the performance of the Nasdaq-100 Index. It provides investors with exposure to leading global companies listed on the Nasdaq stock exchange.

  2. Q: What is the minimum investment amount for the Motilal Oswal Nasdaq 100 ETF?

    A: The minimum investment amount for the Motilal Oswal Nasdaq 100 ETF is one unit, which is currently priced around Rs. 2000.

  3. Q: What are the advantages of investing in the Motilal Oswal Nasdaq 100 ETF?

    A: The advantages of investing in the Motilal Oswal Nasdaq 100 ETF include exposure to leading global companies, diversification benefits, low expense ratio, passive investment strategy, low minimum investment amount, high liquidity, and ease of trading.

  4. Q: What are the risks associated with investing in the Motilal Oswal Nasdaq 100 ETF?

    A: The risks associated with investing in the Motilal Oswal Nasdaq 100 ETF include exchange rate risk, concentration risk in the technology sector, market risk, limited exposure to Indian companies, and tracking error.

  5. Q: Can NRIs invest in the Motilal Oswal Nasdaq 100 ETF?

    A: Yes, NRIs can invest in the Motilal Oswal Nasdaq 100 ETF by following the guidelines provided by the Reserve Bank of India.

  6. Q: How is the Motilal Oswal Nasdaq 100 ETF taxed?

    A: The Motilal Oswal Nasdaq 100 ETF is taxed like any other equity investment in India. Short-term capital gains (if units are held for less than one year) are taxed at 15%, while long-term capital gains (if units are held for more than one year) are taxed at 10% for gains above Rs. 1 lakh.

Source – https://www.moneycontrol.com/

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