Finance
By: Shree1news, 29 MAR 2021
MUMBAI: An Exchange Traded Fund (ETF), by Motilal Oswal Mutual Fund and tracking the Nasdaq 100 index, has grown about 9 times since its launch on 29 March 2011, delivering a return of 24.17% (CAGR). Apple Inc is its top holding, with a weight of 11.16% followed by Microsoft (9.51%) and Amazon (8.46%). It has assets underneath administration worth Rs2,989 crore.
“It is the top performing fund over 3,5 and 10 years in India at a 24%+ CAGR,” mentioned Pratik Oswal, head of Passive Funds, Motilal Oswal Asset Management Firm.
Some of the fund’s high returns are a results of rupee depreciation. The Indian rupee has declined from around 44 to a dollar in March 2011 to 72.60 at present.
Based on experts, however, coming decade may see emerging markets outperforming the US. “It has good prospects going forward however they may not be as much as the last decade,” mentioned Oswal. “I have no idea about emerging markets vs Nasdaq however yes people should also look to diversify there,” he added.
Motilal Oswal has announced plans of launching an Emerging Markets ETF next month. The fund home launched a Fund of Funds (FoF) tracking the Nasdaq 100 ETF in November 2018 in order to make it possible for investors without demat and trading accounts to spend money on the Nasdaq Index and followed it up with an index fund tracking the S&P 500 on 28th April 2020. The latter is up 28.46% since launch.
“Passive Funds such as ETFs should definitely be part of each investor’s portfolio. This contains both ETFs monitoring Nifty/Sensex and global indices. I typically allocate around 10% of my client’s portfolios to the Nasdaq 100 ETF,” mentioned Viral Bhatt, founder, Money Mantra, a Mumbai based mutual fund distributor.
Source:A-N
