The #Nasdaq 100 is down 22% from thr start of this year. It may have further to fall but for those wanting to invest, #ETF feeder funds are open. Yes, flows into active international funds are stopped. But FoFs into ETFs have a separate limit of USD 1 billion. A tiny 🧵
You may be puzzled because Motilal Oswal AMC, the largest in the passive category has stopped all inflows. This is because Motilal index funds and ETFs directly buy US stocks. They don't get the benefit of the separate ETF limit.
You can buy ETF units of Motilal AMC on the secondary market but since the AMC cannot create fresh units to meet demand, chances are you'll be forced to pay an unnecessary premium to the ETF NAV. Instead you can just go for an fund of funds (FoF) feeding into an overseas ETF.
The Nasdaq FoFs of @invescoindia, @KotakMF and @abslmf are open. They feed into overseas ETFs which track the NASDAQ. For instance Invesco feeds into its own EQQQ ETF (its US counterpart - QQQ is the largest NASDAQ ETF in the world). ABSL MF feeds into a Blackrock ETF (iShares)
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