How to Invest in Top U.S. Stocks from India with MOFN100 ETF

Aanchal Rao

8 months ago

How to Invest in Top U.S. Stocks from India with MOFN100 ETF

The U.S. stock market can be one of the greatest ways to build wealth, especially when you consider the success of big companies like Apple, Microsoft, and Amazon. However, this could be cumbersome and costly for many people in India.

This is where the MOFN100 ETF, or the Motilal Oswal Nasdaq 100 ETF, really fits the bill. Cheap and easy, it is the perfect mode to invest in the top 100 companies in the U.S. Let me take you through a simple how-to do it:

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What is MOFN100 ETF?

The MOFN100 ETF is designed to be like a basket of shares from the Nasdaq stock exchange of the 100 largest companies listed in the United States. This means that with every unit bought, the investor is essentially putting a small amount of money into these big companies.

It has leading market brands in sectors such as technology, healthcare, and consumer services.

Why Invest in the MOFN100 ETF?

Here are the reasons why you should invest in MOFN100 ETF:

Easy diversification: Instead of investing all of your money in one company, this ETF diversifies your investment across 100 companies, bringing down your risk.
Cost-effective: this approach takes into account currency conversion fees and the significantly high brokerage charges associated with direct investment in the U.S. equity market. The MOFN100 ETF allows you to invest in those very stocks without the hassle of these additional costs.
Simple and convenient: No need to open any special international trading account. You can invest in this ETF just like you would in any other mutual fund or stock in India.
Access illustrious names: The ETF consists of the largest companies in the world, such as Apple, Google, Facebook, and Tesla. With MOFN100, you will thus be sharing in the growth of these magnificent companies.

To learn more, click here.

How to Invest in the MOFN100 ETF

It is easy to invest in MOFN100 ETF.

Via Demat Account

Step 1: If you do not have a demat and trading account, open one with any brokerage that offers access to ETF products.
Step 2: Now, using your broker’s platform, search for the ETF by its name, “Motilal Oswal Nasdaq 100 ETF,” or by its code, MOFN100.
Step 3: Buy the number of units you desire. These will be credited to your Demat account, and you will finally become an investor in leading American companies.

Through a SIP

Some brokers enable investment in the MOFN100 ETF with SIPs that involves investing money at regular intervals. This way, you are investing at regular intervals and not in one go.

Via Mutual Fund Platforms

Investors who would rather invest in mutual funds can choose the Motilal Oswal Nasdaq 100 Fund of Fund, which subsequently invests in the MOFN100 ETF. This option can be availed through various mutual fund platforms.

Things to keep in mind

The MOFN100 ETF is an awesome instrument to invest in U.S. equities, but one has to be mindful of the risks involved:

Market Risk: The value of the ETF can rise or fall depending on the fortune of the companies in the ETF.
Currency Risk: As this is an underlying of U.S. stocks, this ETF would participate in changes on the fluctuation of the exchange rate between the Indian Rupee and the U.S. Dollar, which may impact your returns.
Sector Risk: With technology firms making up so much of the Nasdaq-100 Index, this ETF could be among the casualties of any problems in that sector.

Final Thoughts

Individually, just invest in the MOFN100 ETF for a simple and effective way to get exposure to some of the biggest and most successful companies listed in the United States. It is cost-effective, easy to manage, and lets one diversify broadly across different industries.

Always consult a financial advisor beforehand to ensure that this investment suits your goals and risk tolerance. With careful planning, the MOFN100 ETF could be excellent for financing your strategy.

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