News for Motilal Oswal NASDAQ 100 ETF (N100.NS)

Indian investors are increasingly turning to international mutual funds to diversify portfolios amidst global market fluctuations, influenced by US trade policies and geopolitical tensions.

Investors in 2025 should consider diversifying portfolios between Nasdaq and Nifty 50, focusing on factors such as market volatility, economic growth, and currency fluctuations. While US equities offer stability and profitability, Indias economic resilience and growth potential provide promising returns albeit with higher short-term risks.

Discover why Motilal Oswal Nasdaq-100 FOF outperforms Kotak by 60%. Learn how ETF premiums and regulatory limits create surprising return gaps.

Investors taking this route can find their returns erode, when the NAV and market price converge. Several ETFs, based on the US markets, are currently trading at a premium to their NAVs due to renewed interest among investors to diversify and take an exposure to the US markets after Donald Trump's recent win in the US Presidential poll.

Prasad Sawant from IIFL Securities mentions high returns from Mirae Asset and other US tech-focused mutual funds. Nvidia's success led to a 170% return. Indian mutual funds have exposure to US tech stocks like Microsoft, Apple, Google, and Nvidia.

Of the 69 international funds, 26 have been closed in some capacity. Some have been toggling flows intermittently due to limited capacity. Pratik Oswal, Head, ETFs and Index Funds, Motilal Oswal AMC, points out, “We have some headroom to invest abroad, but we are not encouraging large investors and are giving preference to retail SIP contributions.” What should mutual fund investors do now?

Overseas-focused ETFs trading at premium due to SEBI restrictions, creating demand-supply imbalance on stock exchanges.

Fund of funds investing in overseas ETFs won't accept fresh investments from 1 April.

As capital market regulator, SEBI asks mutual funds to suspend inflows into overseas ETFs, top industry leaders say with forex reserves at a comfortable level, it is time for RBI to ease the investment limits.

Motilal Oswal had the highest exposure of around Rs 439 crore in Nvidia. Mirae Asset Mutual Fund and Franklin Templeton Mutual Fund had exposure of around Rs 200 crore, January month data collated by Fisdom Research shows.

Indian mutual funds had ₹1,699 crore exposure to the stock

An index fund does away with operational and valuation related issues and is preferred over ETFs by most investors

Adding international equity to the portfolio adds value to the portfolio. Which is the best international equity mutual fund in India?

Out of 48 international funds that Indian investors can invest, 12 invest in the US markets. Most of these invest in technology companies listed in the US markets.

ETFs with their functioning similar to mutual funds are different in the sense that they are passively managed, implying to say there are no fund managers to buy the stocks based on the objective of the fund scheme. So, ETFs or exchange traded funds are mutual funds that are listed on exchanges and traded similar to stocks.