U.S. ETFs versus Indian FOFs

Last updated: 15 Jul, 2020 | 12:45 pm

U.S. ETFs versus Indian FOFs

This is a brief comparison of Indian Fund of Funds (FOF) investing in US markets - versus investing directly in US markets through INDmoney over a period of 5 years.

Funds used for this comparison:

  • Principal Global Opportunities Fund (Direct – Growth)
  • PGIM India Global Equity Opportunities Fund (Direct – Growth)
  • Franklin India Feeder - Franklin U.S. Opportunities Fund (Direct – Growth)
  • Invesco QQQ ETF

Note – Over a period of 5 years both funds are subject to Long Term Capital Gains Tax (LTCG) at a rate of 20% plus indexation benefits.

Value of ₹10 Lakh invested over a period of 5 years


Compounded Annual Growth Rate (CAGR)

Expenses

More details about these instruments:

Principal Global Opportunities Fund (Direct – Growth)

An open-ended Fund of Fund (FOF) investing major proportion of net assets in underlying - PGIF Origin Global Smaller Companies Fund - Usd I Class Accumulation. The FOF carries an expense ratio of 1% with an AUM of ₹18 Cr.

Top Holdings (As of 30/06/2020)


Franklin India Feeder - Franklin U.S. Opportunities Fund (Direct – Growth)

An open-ended Fund of Fund (FOF) investing in units of underlying - Franklin U.S. Opportunities Fund. The FOF carries an expenses ratio of 0.61% with an AUM of ₹1844 Cr.

Top Holdings (As of 30/06/2020)


PGIM India Global Equity Opportunities Fund (Direct – Growth)

An open-ended (FOF) investing in units of underlying PGIM Jennison Global Equity Opportunities Fund. This FOF carries an expense ratio of 0.25% with an AUM of ₹137 Cr.

Top Holdings (As of 30/06/2020)


Invesco QQQ ETF

One of the largest exchange traded fund (ETF) in the U.S. based on NASDAQ – 100 index. The fund holds an AUM of $115.23 Billion (₹ 8.66 lakh crores) and carries an expense ratio of 0.20%.

Top Holdings


How can you invest in the U.S. markets?

  • Create your free US Stocks Account
  • Transfer funds to your US Stocks account from your bank
  • Buy and Sell right on the IND SuperMoneyApp 

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Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

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