Global Index based ETFs

Motilal Oswal is launching an ETF based on the Index, NASDAQ 100 .

Those of you, who do not know what an ETF is, ETF is exactly like a Mutual Funds , but the units of a ETF ( Exchange Traded Funds ) can be bought on the stock market during the trading hours.

Want to know more about ETF , please check here

About a year back Benchmark Mutual Fund had launched an ETF based of the Hang Seng Index.As far as i know, these are the only two ETFs , that an Indian investor can use to invest in stocks that are listed outside India

The current offering from Motilal Oswal , would invest in the NASDAQ 100 companies in the same proportion as in the Index

NASDAQ 100
NASDAQ stands for "National Association of Securities Dealers Automated Quotations". Details here

NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. More details here .

There are arguments both in favour and against , Indian investors investing in foreign companies .

Arguments in favour :

• The Investor would be able to diversify his investment in non Indian companies and markets
• The Investor gets a chance to invest in some true blue multinational giants

Arguments NOT in favour

• The Indian investor has better growth opportunity in India itself
• The Investor may suffer from currency fluctuations

I would wait and see how this ETF would perform ,before i even think of investing
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