I want Nasdaq 100 exposure. Should I buy the Motilal Oswal Nasdaq 100 fund of funds in India, or the iShares Nasdaq 100 UCITS ETF (CNDX) through Interactive Brokers?
1 Answers
Both give the same index. The differences are cost, paperwork and convenience:
| Motilal Oswal Nasdaq 100 FoF | CNDX (iShares Nasdaq 100 UCITS, accumulating) | |
|---|---|---|
| Total cost | Higher: about 0.8% a year, because two layers of expenses stack | About 0.30% TER |
| Taxation in India | After the 2025 change to Section 50AA, 12.5% LTCG after 24 months | 12.5% LTCG after 24 months too |
| Paperwork | None beyond a normal mutual fund | LRS remittance, TCS above ₹10 lakh a year, Schedule FA in your ITR, and foreign capital gains computation |
| Tracking | Can lag the index, partly because of the fund-of-funds structure and any limits on overseas investment | Close to the index |
| Dividends | Reinvested inside the underlying fund | Accumulating, with only a small US withholding drag through Ireland |
Rough rule:
- Small or SIP-sized amounts, or you want zero compliance work: the Indian FoF is simpler.
- Larger or growing amounts, and you already have IBKR and file ITR-2 or ITR-3 with Schedule FA: CNDX's cost advantage compounds, and it's cleaner.
To see what the remittance itself costs, including GST and TCS, try Worthify's LRS remittance calculator.
Related
AU Bank's account number field only accepts numbers, but my IBKR or Paasa account has a letter. What do I enter?
1 answers
Where do I download the account confirmation letter for my IBKR or Paasa account?
1 answers
What can I submit as "documentary evidence for the purpose of investment" when sending money to IBKR from AU Bank?
1 answers
Does AU Bank need the IBKR confirmation letter and a 1-year bank statement for every remittance?
1 answers
Which account number should I enter for IBKR as the beneficiary in a wire transfer?
1 answers
How do I make sure IBKR credits my wire transfer quickly?
1 answers