InvestorQ : Can you tell me about the recent NASDAQ 100 fund launched by Kotak AMC?
Ria Jain made post

Can you tell me about the recent NASDAQ 100 fund launched by Kotak AMC?

Dia Deshpande answered.
1 year ago

Kotak Mutual Fund announced launch of Kotak NASDAQ 100 FOF. This fund of fund will invest in a basket of global NASDAQ funds. The NFO has opened on 11 January 2021 and the issue will close for subscription on 25 January. It will invest in a basket including overseas ETFs like iShares NASDAQ 100 ETF, Lyxor NASDAQ 100 ETF etc.

The NASDAQ not only recovered the losses of COVID but also settled nearly 25% above the pre-COVID levels. Most companies on the NASDAQ are leaders in information technology, telecom, retail, wholesale trade and biotechnology. Big names on NASDAQ include Amazon, Alphabet, Apple, Tesla, Microsoft, Facebook and many more.

The Kotak NASDAQ 100 Fund is an opportunity to invest in the world’s leading predominantly technology driven companies via overseas units. Just to give an idea, the market of Amazon alone is inching towards the market cap of India. This is a much safer passive methodology of investing in global technology leaders sitting right here in India.

You need to keep in mind that NASDAQ is currently quoting at life-time highs and this rally has been largely driven by a flood of liquidity. Hence the valuation risk is always there, although a systematic approach could help.