Stock market is always crazy. Returns from stock markets are always fluctuating year on year. However, this Exchange Traded Fund (ETF) invests in US markets and generated consistent positive returns in the last 9 out of 10 calendar years. This year 2022 is a bad year for this ETF, hence showing negative returns. In this article we would talk about the ETF that generated positive returns every year in the last 10 years except for 2022.
Also Read: Largecap mutual fund with highest SIP returns in last 5 years
How we filtered this ETF?
We have considered all the ETFs in India. The list of ETFs comes to 133 nos.
We have filtered ETF that generated positive returns every calendar year from 2013 to 2022 (10 years). Means if one would have invested on 1st January and sold on 31st December, they would have made a profit. This is irrespective of the percentage.
Out of 133 ETFs, only one mutual fund has consistently generated positive returns for 9 out of 10 calendar years. This ETF is Motilal Oswal NASDAQ 100 ETF.
This ETF has generated positive returns between 5.5% to 55% returns during 2013 to 2021. However, this ETF has generated 20% negative returns in 2022.
About Motilal Oswal NASDAQ 100 ETF
Investment Objective
This funds investment objective is to seek investment return that corresponds to the performance of the NASDAQ100 Index, subject to tracking error and fund expenses. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Minimum investment in this ETF is Rs 500.
There is no entry or exit load.
This ETF was launched in Mar-2011.
Its current AUM is Rs 5,033 Crores.
The benchmark of the fund is NASDAQ 100 TRI.
Its current expense ratio is 0.58%.
Where does this fund invest?
While this fund invests in NASDAQ 100 Index stocks, let us look at the current composition.
This index invests in 100 stocks comprising majorly from Services, Technology, Consumer and Capital Goods segment.
The top stock holdings of this index are Apple, Microsoft, Amazon, Tesla, Alphabet-Google and NVIDIA.
How is the Performance of the ETF?
A) Calendar year wise returns (1-Jan to 31-Dec)
| Year | Returns |
|---|---|
| 2013 | 54.90% |
| 2014 | 22.60% |
| 2015 | 13.50% |
| 2016 | 8.10% |
| 2017 | 22.20% |
| 2018 | 5.50% |
| 2019 | 41.60% |
| 2020 | 51.50% |
| 2021 | 30.00% |
| 2022 | -20.00% |
B) Annualised returns
1 Year – Negative 20%
3 Years – 17%
5 Years – 18%
10 Years – 21%
C) SIP Returns
3 Years – 5% (10K monthly SIP investment would have been 3.6 Lacs and this investment would have grown to Rs 3.85 Lacs)
5 Years – 14% (10K monthly SIP investment would have been 6 Lacs and this investment would have grown to Rs 8.5 Lacs)
10 Years – 18% (10K monthly SIP investment would have been 12 Lacs and this investment would have grown to Rs 31.2 Lacs)
SIP returns for 3 years is low as the fund has generated high negative returns in the last 1 year.
How to invest in this ETF?
ETFs are listed on the stock exchange and one can purchase them directly from the stock exchange. However, investors need to have a demat account for that. In case you do not have demat account, you can invest in any AMC’s NASDAQ 100 FoF (Fund of Fund) like any other mutual fund.
Also Read: Best HIGH Return Mutual Funds to invest in 2022
Should you invest in Motilal Oswal NASDAQ 100 ETF?
This ETF generated consistent positive returns in the last 10 years, except in 2022 where it generated negative returns. While in the short term the performance is not good, in medium to long term, this fund performed well.
On the other side, its major concentration of this index is there on Tech stocks. Many critics say its high risk of investing in a portfolio where the concentration is on technology companies.
This index has corrected by over 20% and provides a good opportunity for investors to invest a lump sum or investments in a staggered manner beyond SIP.
High risk investors who are looking to create wealth for medium to long term, can invest in such ETFs. Alternatively, you can invest in mutual fund schemes that invest in the NASDAQ 100 index. Currently investments in some of the overseas funds are still restricted, hence one can invest in any mutual fund schemes that invest in NASDAQ 100 Index Fund of Funds where such restrictions are not there.
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Hello Suresh,
I read your articles and they are very informative. Thank you for the analysis of such investments. It is helpful to many investors.
As I understand both overseas index funds of Motilal Oswal, Nasdaq 100 and S&P 500 were stopped due to SEBI regulations of industry limit exceeded (7?) billion dollars many months ago.
I also read recently that both these funds of Motilal Oswal are resuming from Dec 2022. Please advise if we can invest in these 2 funds as SIP mode.
Thanks in advance.
Kumar
Hello Kumar, They are resuming only ETFs and not FoF. You can invest in their ETFs for now.
Hi sir , thanks for this post sir .
Sorry for the difference topic question . However it’s a investment.
And one small clarification reg unity small finance Bank fd sir .this bank is giving 8.50 to 9 % for 181 days … This is deposited insured bank 5l this is positive and negative is its old name is PMC bank…renamed as Unity small finance blank …. Let me know your ideas on safy side sir …
Its amalgamation of 2 banks. When a bank is not popular, they offer higher interest rates. Thought it is covered by DICGC, it is riskier. Go for larger banks or other small finance banks
can you also please update on how the US mutual funds are taxed?