ICICI Prudential Mutual Fund has launched ICICI Prudential NASDAQ one hundred Index Fund, an open-ended index fund replicating the NASDAQ-one hundred index. The fund offers Indian mutual fund investors an chance to diversify their domestic portfolio across the US stocks. Nasdaq one hundred index is a huge-cap development index and involves one hundred of the major domestic and international non-monetary businesses based on industry capitalization. Some of the major US stocks integrated in the Nasdaq one hundred are Facebook, Apple, Amazon, Google and Netflix – popularly referred to as the FAANG stocks.
NASDAQ one hundred Index Fund, the NFO of which closes on October 11, 2021 aims to track returns of the NASDAQ-one hundred Index, topic to tracking error. The minimum investment necessary in the course of NFO is Rs. 1000. Although the Nasdaq one hundred is at the moment trading (14472) at close to its all-time higher level (15701), the exposure to the fund suits these who want to diversify abroad with a lengthy term viewpoint. In 2020, Nasdaq one hundred was up by 47 per cent although YTD in 2021, the index is up by practically 12 per cent.
The Nasdaq one hundred consists of businesses across significant business groups, Industrials, Consumer Goods, Health Care, Consumer Services, Telecommunications, Utilities and Technology Noticeably, what it does not incorporate are the stocks of banks and monetary businesses, which includes investment businesses. The maximum allocation of practically 55.22 per cent is in the Technology sector although Consumer Services has a weightage of practically 24.34 per cent.
As an Indian customer of goods and services of these firms, you can even invest in the development story of these worldwide blue-chip businesses. The NASDAQ one hundred Index Fund is appropriate for investors seeking for geographical diversification in their equity allocation in Index Funds. By investing in the fund, investors can get access to globally top businesses that sustain dominant positions in the industry.
Markets about the globe execute differently every year, hence diversification to international markets may possibly allow investors to earn far better returns. Not only is the US a created nation with mature markets and the highest share in worldwide equity markets (59%), the US is also a industry that delivers investors with an chance to invest in themes such as cloud computing, e-commerce, artificial intelligence and so on. which is not substantially offered in the domestic markets.
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Investing solely in one economy keeps them exposed to nation-danger. There are a number of micro and macro financial Geo-political things that effect a nation’s economy. In case of any internal financial and political conflicts inside the nation, the portfolio remains exposed to the concentrated danger. In order to reduce danger and maximize the possible of returns, you want to diversify your investment portfolio. Diversification across asset-class, industry capitalization and so on is incomplete unless you diversify geographically.