Motilal Oswal NASDAQ 100 ETF

Motilal Oswal NASDAQ 100

Motilal Oswal NASDAQ 100 ETF is an international ETF by Motilal Oswal Mutual Fund. It was introduced on 29 March 2011.

This ETF scheme mirrors the NASDAQ 100 index and its performance. The Nasdaq-100 is a US stock market index that comprises the 100 largest non-financial companies listed on the Nasdaq stock market. The largest technological companies in the US are listed on Nasdaq. Apple, Microsoft Corporation, Amazon, Tesla, and Facebook are significant constituents of the Nasdaq 100 Index.

About NASDAQ 100 Index 

The index was launched on 31 January 1985.

The index’s weight is rebalanced every quarter, while the rebalancing of composition takes place annually.

Technology companies, consumer service companies, healthcare companies, consumer goods and industrials form a part of the index. Tech companies account for 56% of the index’s weight. Consumer services companies that account for almost 25% follow it.

Things to know about Motilal Oswal NASDAQ 100 ETF

It is an international ETF and tracks NASDAQ 100 index.

This fund invests mainly in shares of US-based companies that are market leaders in their respective sectors.

Technology companies form a significant chunk of the ETF.

If you don’t have international investments in your portfolio, investing in the ETF can help portfolio diversification and benefit from rupee depreciation. Moreover, a part of your portfolio may remain unaffected by domestic problems.    

Individuals with an investment horizon of five years and above can invest in this ETF.

What are the tax implications?

If you sell the units after three years from the investment date, gains are taxed at 20% after providing you with the indexation benefits.

However, if you sell the units in less than three years from the investment date, the entire gained amount will be added to your income and taxed according to the applicable slab rate for that time.

You don’t have to pay any capital gains tax if you are planning to continue holding the units.

Dividends

Dividends of the invested amount get added to your income and are then taxed according to the tax slabs. Furthermore, if your dividend income exceeds Rs.5,000 in any financial year, the fund house then deducts a TDS of 10% before distribution.

Conclusion

Motilal Oswal NASDAQ 100 ETF is an international ETF. Investors who are bullish on technological companies and want to diversify their portfolio with international stocks can invest in the ETF.

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