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U.S. ETFs versus Indian FOFs

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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