One of the major large cap indexes on the NASDAQ 100 Index
NASDAQ Stock Exchange,
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The unique feature of the NASDAQ 100 is that it focuses on modern industrial and technology companies and does not include financial companies. It is currently an index of 100 stocks comprising technology giants such as Microsoft, Apple, Google, Amazon, Meta Platform, Netflix, Tesla, and more.
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Key Features and Benefits of Investing in the NASDAQ
Nasdaq 100 The market cap on the NASDAQ is a market capitalization-weighted index of the top 100 companies by trade. Most of the companies that trade on the NASDAQ are technology companies and cover areas such as software, hardware, renewable energy, electric vehicles, and more.
Indian investors can invest in NASDAQ stocks by investing in the Indian NASDAQ Fund of Funds or ETFs. Some of the key features are mentioned below:
- High Growth and Innovative Large Cap Companies
The NASDAQ 100 includes innovative and disruptive technology companies. These companies are impacting our daily lives in unprecedented ways and have high growth potential.
- Exposure to New Age Economy Sectors
The majority of the index covers disruptive technology sectors such as Big Data and AI, Robotics, Cloud Computing, 5G, Internet Economy, Streaming Business, Semiconductors, Green Economy, Smart Grid, and more. Many of these companies have filed patents in disruptive technologies. These companies are likely to increase demand, and hence, increase in business and revenue.
- global exposure
The NASDAQ 100 includes companies that have global business or generate major revenue from countries outside the United States.3 Thus, Indian investors can get truly global exposure and not just access to US companies. Investing in the NASDAQ 100 can help investors to invest in companies that are not present in India.
- sector and geographical diversification
Currently less than 50%4 The revenue of companies on the NASDAQ 100 is from the US. Thus, investors can be assured of geographic diversity. Also, although the focus is technology, it targets different sunrise sectors such as smart grids and big data. Thus, it provides the right diversification for the investors.
a spotlightWhy is this a good time to invest in the NASDAQ 100?
- The NASDAQ 100 includes cash-rich, less leveraged companies that are better positioned amid rising interest rates.
- Despite stressful macroeconomic conditions, these companies have a skilled workforce and considerable pricing power. As a result, they have better control over their revenue.
- The index primarily consists of tech companies, with a healthy mix of hardware, software and Internet businesses, enabling innovations faster than any other industry.
- The investment can serve as a hedge against the depreciation of INR vs USD.
- The US markets have less correlation with the Indian market, and hence can help in diversifying your portfolio.
- The world economy is still grappling with events like pandemics, wars and the subsequent global and financial crisis. In 2022, the NASDAQ lost nearly 23%5 Due to selling in the market. Hence, the current valuation looks attractive to investors, making it a good investment opportunity.
Investors can easily access it by investing in the NASDAQ-100 Index.
Axis Nasdaq 100 Fund of FundsWhich in turn invests in ETFs that track the NADSAQ 100 TRI.
Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.
An open-ended fund scheme of the fund investing in units of the Nasdaq 100 TRI-focused ETF.
a spotlightInvestors should consult their financial advisors if in doubt whether the product is a good fit for them.
Source:
- https://www.nasdaq.com/nasdaq-100
- NASDAQ and Bloomberg, as of September 27, 2022
- Morningstar Direct, till 29 September 2022
- Morningstar Direct, till 29 September 2022
- Bloomberg and Axis Internal Research. Data as of 27 September 2022. Past performance may or may not be maintained in the future.