MOSt Shares Nasdaq-100 will allow exposure to global bluechips "THE product will provide Indian investors access to US equities in Indian rupees" Robert J Hughes MD-index services, Global Index Group
NOW Indian investors can own a basket of global blue chip stocks comprising Apple, Google or Microsoft in Indian rupee-denominated investments.
This follows the launch of an exchange traded fund based on Nasdaq-100 index by Motilal Oswal Asset Management Company.
The `MOSt Shares NASDAQ-100' ETF is India's first US equities based ETF and will track Nasdaq-100 index.
This is the second global equity index based ETF in India. Last year Benchmark Asset Management had launched an ETF that tracks Hong Kon Stock Exchange's benchmark index Hang Seng index.
Nasdaq-100 is one of the most widely traded and held index, it is also the second most liquid index in the world. MOSt Shares Nasdaq-100, an open-ended index ETF will provide Indian investors an exposure to top 100 non-financial companies that constitute the index.
"Nasdaq-100 based ETF is a complementary product for Indian investors providing an opportunity to invest in other pockets of global growth," Nitin Rakesh, MD & CEO, Motilal Oswal AMC said.
"The product will provide diversification in equity as well as currency while some see it as currency risk," Rakesh said.
Robert J Hughes, managing director-index services, Global Index Group, NASDAQ OMX who was also present on the occasion said, "You are buying innovation and growth when buying Nasdaq-100."
Nasdaq-100 comprises of world's leading technology and innovation companies like Apple, Qualcomm, Google, Microsoft, Oracle, Amazon.com, Intel Corp, Cisco Systems, Israel's Teva Pharma, Research In Motion, Starbucks, China's Baidu, Ebay.
"The product will provide Indian investors access to US equities in Indian rupees," Hughes said.
Indian investors can invest any amount and won't be subjected to $200,000 limit, since investments will be in rupee. But the AMC will have an investment limit of $300 million prescribed for overseas investment.
"This (Nasdaq-100) is not a play on US economy but on global growth as more than 40 per cent of index companies' revenue come from outside US," Rakesh said.
The new fund offer will be open for subscription from March 16, 2011 to March 23, 2011. The unit of the fund will be issued before the end of the month and will be listed on BSE and NSE.
The minimum investment amount during the NFO period is Rs 10,000.
During the NFO, the units of the fund will be allotted at 1/1000th of NASDAQ-100 index value in Indian Rupee, hence the NFO unit allotment is likely to happen at about Rs 105 per unit. The fund will be managed by Rajnish Rastogi.
