Which is that one place where you’ll find the shares of all top tech giants you can name? NASDAQ. It is hands down the largest stock market for shares of tech companies. They are also something you’ll find in the portfolio of almost every trader.
Many Indian traders and investors are investing heavily in US stocks to diversify their portfolios. While there are various stocks to invest in the US market, investors are highly attracted to the NASDAQ.
Now, what exactly is NASDAQ, and how can you invest in it? Let’s find out!
What Is NASDAQ?
NASDAQ, also known as the National Association of Securities Dealers Automated Quotations, was the first stock exchange to use computers. NASDAQ is an exchange based in New York and is the second-largest stock exchange in the world in terms of equity market capitalization.
The NASDAQ exchange currently lists more than 3,300 businesses. Companies representing a variety of industries, including energy, healthcare, capital goods, consumer durables and nondurables, finance, and technology, are listed on the NASDAQ. It is well renowned for its high-tech stocks, though. For example, the shares of the six most valuable companies in the world—Apple, Microsoft, Amazon, Alphabet, the parent company of Google, Tesla, and Facebook—are traded on NASDAQ.
While this sounds amusing, there is this one more detail you must know before investing in NASDAQ from India.
The Two Stock Indices Of NASDAQ
Before we jump into how to invest in NASDAQ from India, knowing this one detail is essential. As of now, NASDAQ is divided into three different indices.
1. NASDAQ Composite
The NASDAQ Composite is used to track almost all companies listed on the NASDAQ stock market. Preferred securities and exchange-traded funds are not included in the index (ETFs).
20% of the index is made up of consumer services, 50% of the index is made up of technology companies, and 10% of the index is made up of healthcare companies. The remaining businesses operate in publicly listed industries, such as the telecommunications, utility, and oil sectors.
The NASDAQ Composite Index, which includes every common company listed on the NASDAQ, gives investors exposure to both today’s and some of tomorrow’s tech giants, like Apple, Microsoft, and Amazon.
2. NASDAQ 100
The NASDAQ 100 tracks only the top 100 NASDAQ-listed companies, excluding those in the banking industry, giving it a far narrower scope than the NASDAQ Composite. The NDX symbol designates the NASDAQ 100.
The NASDAQ 100 only consists of 101 equity securities provided by 100 of the largest non-financial firms listed on the NASDAQ and does not include all common buy foreign stocks from india traded on the NASDAQ exchange. More than 90% of the NASDAQ Composite Index’s weight comes from the 100 companies that comprise the NASDAQ 100.
The NASDAQ 100 is significantly skewed toward technology-related companies, which make up more than half of the index’s weighting. The NASDAQ Composite, on the other hand, provides a more accurate representation of all the equities listed on the NASDAQ exchange and a more comprehensive perspective of the stock market as a whole.
Now that we have got that part covered, let’s look at the 4 ways how to invest in NASDAQ from India.
4 Ways To Invest In NASDAQ From India
1. Through ETFs Listed In India
You can invest through Indian-listed mutual funds and ETFs if all you’re interested in is the broad NASDAQ market. These funds charge a management fee for their investments in NASDAQ-listed businesses. It provides little flexibility for serious investors. Domestic funds significantly underperform US-listed ETFs due to excessive fees, insufficient liquidity, and tracking errors.
Even EFTs are of two types. First, EFTs like Ivesco QQQ Trust Series 1 that are based in the US and Indian ETFs that track NASDAQ like ICICI Prudential Nasdaq 100 index fund or the Motilal Oswal Nasdaq 100 ETF.
ETFs are one of the most simple ways to invest in the NASDAQ if you don’t have the time to research and choose equities.
2. Curates Stacks
With a single click, you may invest in pre-configured sets of equities and exchange-traded funds (ETFs) known as stacks. Stacks on Stockal help you accumulate wealth since their baskets are the end product of extensive labor and study. They concentrate on the company’s fundamentals and its growth prospects, among other things, to create a single basket of stocks and ETFs.
You can consider this option if you don’t want to have time to invest in various stocks but still want a safer option.
3. Mutual Funds
Mutual funds that invest in US businesses with exposure to NASDAQ shares are an additional option. Direct stock investments can potentially yield bigger rewards because they demonstrate the investor’s capacity for taking risks. In addition, mutual funds lower the risks associated with market volatility. Although the returns are more steady, they still fall short of what may be obtained by directly investing in the stock market.
4. Directly Investing Into The NASDAQ Stocks
You can also directly invest in the NASDAQ stocks as an Indian. The largest technology businesses in the world, including Apple, Microsoft, Alphabet Inc. (Google), Meta Platforms Inc. (Facebook), are all directly investable. To make it easier, you can invest through Stockal. Stockal has made investing in NASDAQ from India – quick, easy and accessible for everyone. Here’s how exactly Stockal helps you invest directly into the NASDAQ stocks from India.
How Does Stockal Make It Easy To Invest Into The NASDAQ From India?
With Stockal, your brokerage account will be created by their US-based partner DriveWealth. Once you create the account and submit all vital documents, your account generally gets approved within 15 to 20 minutes.
All Indian residents must abide by the RBI’s Liberalized Remittance Scheme while transferring funds from India abroad. Right now, account holders of only HDFC, ICICI, and Kotak Bank can complete the LRS process online directly through the app in some simple steps. You can also download the form online, print it and fill it up for their agents to collect and submit to the bank. This option is only available for HDFC and Yes Bank. For all other banks, you’ll need to contact your relationship manager.
Just like other brokerage platforms, once the process is completed, funds are deposited into your account, and you start investing. In addition, you can use their app or website to access your account and conduct research.
You can use Stockal to invest directly in NASDAQ equities if you’re a risk-taking investor. The process is simple and fast. You can conduct deep research on the stocks right from the app and then make an informed decision.
If you don’t have the time to research and select stocks, ETFs and Stockal stacks are the easiest ways to invest in the Nasdaq. Stockal groups stocks based on subject, idea, or sector connected to stocks listed on NASDAQ. It’s crucial to keep in mind that investments come with risks and expenses. Therefore, before making an investment as an investor, it’s critical to evaluate your risk tolerance.