How to Invest in the Nasdaq 100 from India
The Nasdaq 100 is home to global tech leaders like Apple, Amazon, Microsoft, and Google. For Indian investors seeking global diversification and exposure to high-growth U.S. companies, investing in the Nasdaq 100 is a smart move.
Here’s how to invest in the Nasdaq 100 from India using practical and legally approved methods.
Why Invest in the Nasdaq 100?
- Exposure to U.S. tech and innovation
- Dollar-based investment to hedge INR depreciation
- High long-term performance potential
- Access to global market leaders
1. Through International Mutual Funds
Several Indian asset management companies offer funds that invest in Nasdaq 100 or U.S. equities:
- Motilal Oswal Nasdaq 100 FOF
- Edelweiss US Technology Equity FOF
- ICICI Prudential US Bluechip Equity Fund
Steps:
- Open a mutual fund account (online or through a distributor)
- Search for the relevant Nasdaq 100-based fund
- Invest via lump sum or SIP (Systematic Investment Plan)
Pros:
- Easy access, no foreign remittance needed
- SIP options available
- Managed by Indian fund houses
2. Via Global Investing Platforms
Use platforms that offer direct investment in U.S. stocks and ETFs:
- INDmoney
- Vested Finance
- Groww Global
- Stockal
These platforms allow you to buy ETFs like:
- QQQ (Invesco Nasdaq 100 ETF)
- QQQM (low-cost version)
Requirements:
- PAN card, KYC documents, LRS declaration
- Set up a U.S. brokerage account through the app
- Fund it via your bank under RBI’s Liberalized Remittance Scheme (LRS)
Pros:
- Direct exposure to ETFs
- Dollar-denominated assets
- Greater flexibility in fund selection
3. Through Indian Brokers with Global Access
Some Indian brokers have tie-ups with foreign brokerage platforms:
- ICICI Direct Global
- HDFC Securities Global Investing
- Axis Bank’s Global Investment Services
They allow investing in U.S. ETFs and stocks directly through their portals.
Taxation Considerations
- Dividends: Taxed at 25% in the U.S., claimable under DTAA
- Capital Gains: Long-term (over 24 months) taxed at 20% with indexation in India
- Mutual Funds: Taxed as per debt fund rules in India
Consult a tax advisor before making large investments.
Final Thoughts
To invest in the Nasdaq 100 from India, you can choose mutual funds for simplicity or international platforms for direct control. Both methods provide exposure to some of the world’s fastest-growing companies, helping diversify your portfolio globally.
FAQs
Can I buy QQQ ETF directly from India?
Yes, through global investing platforms under the RBI’s LRS framework.
What’s the minimum amount required?
Mutual funds may start from ₹500/month (SIP). Global platforms often require $1–$10 minimum per ETF.
Is it safe to invest in the Nasdaq 100 from India?
Yes, if done through SEBI-regulated mutual funds or RBI-compliant global platforms.
Do I need a U.S. bank account?
No. INR is converted to USD during the transfer via authorized banks.
Which option is better—mutual fund or ETF?
Mutual funds are simpler for beginners. ETFs offer more flexibility and lower costs.
