Those inclined to earn profits from international investments can now invest in the Invesco EQQQ Nasdaq-100 ETF Fund of Fund. This open-ended mutual fund invests in the Invesco EQQQ Nasdaq-1000 UCITS ETF. Roughly 95 per cent of the money in the fund would be invested in the Invesco EQQQ Nasdaq UCITS ETF fund that tracks the Nasdaq 100 Index.
This sister fund of US-based Invesco QQQ ETF was open for subscription from March 30, 2022 to April 13, 2022. The scheme then re-opened for continued sales and purchases within five days from the date of allotment. This fund has roughly ₹24 crore in its assets under management. An analysis of the holdings by this company reveals an allocation of 73.2 per cent in equity instruments and the remaining in cash.
Why invest in this fund?
Unlike mutual funds, holders of this FoF will also have to bear the recurring expenses of the scheme apart from the expenses applicable to the underlying fund. The underlying fund is based in Ireland and has been operating in the market for 19 years. The expense ratio of the underlying fund as of now is 0.30 per cent.
Those who have invested in this fund will earn returns corresponding to the price and yield performance of the NASDAQ-100 Notional Index in US dollar terms. The idea behind investing in this fund is to get some exposure to Nasdaq-100 stocks, thus, improving portfolio performance and reducing overall risk.
Choose your investment mode
Those interested to invest in this fund must put in at least ₹1000 with every application, and in multiples of Re 1 in further lumpsum purchases. The minimum purchase amount is ₹500 for those who wish to invest through systematic investment plans (SIPs). Thereafter, the investors can invest in multiples of Re 1 subject to a minimum number of 12 instalments.
Explaining the strengths of this fund, Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund said, “The NASDAQ-100 is more than just an index; it is home to the world’s most influential and innovative companies* like Apple, Amazon, Microsoft, Tesla, Alphabet etc. Further, the NASDAQ-100 is not limited to the technology sector alone it is home to disruptors and leading names from diverse sectors, including consumer discretionary, healthcare and others. It is no surprise that these companies are transforming the world and present a strong investment opportunity.”
Those who have invested in this scheme will have exposure to at least 100 largest US and other foreign non-financial companies listed on the Nasdaq stock exchange. Unlike most mutual funds that charge exit loads on redemptions, this fund will not charge its investors for redeeming their investments beforehand.