Paytm Money makes it easier for investing in US tech stocks
2 min read 19 Apr 2021, 04:01 PM ISTAlong with the NYSE FANG+ ETF, Mirae Asset is also launching a mutual fund scheme (NYSE FANG+ ETF Fund of Fund) which will predominantly invest in NYSE FANG+ ETF
PremiumPaytm today announced that its wholly-owned subsidiary 'Paytm Money' is going to enable Indian retail investors with access to top tech stocks from the US in association with Mirae Asset’s NYSE FANG+ ETF. The country is already one of the largest markets for companies like Facebook, Amazon, Netflix, and Google (Alphabet) - FANG, and its importance will only rise over the next decade.
Along with the NYSE FANG+ ETF, Mirae Asset is also launching a mutual fund scheme (NYSE FANG+ ETF Fund of Fund) which will predominantly invest in NYSE FANG+ ETF. The expense ratio for ETF is at 0.33%, Direct Mutual Fund is at 0.50% while for Regular Mutual Fund the expense ratio has been kept at 1%. Minimum investment through NFO has been kept at ₹5,000 in all three categories mentioned above.
Speaking on the launch Varun Sridhar, CEO of Paytm Money said, “NYSE FANG+ index represents some of the most dominant tech players globally, and has delivered more than 40 per cent CAGR (Cumulative Annual Growth Rate) over the last 3 years. The retail Indian investor today is increasingly looking to diversify beyond traditional funds and asset classes, and Mirae Asset’s NYSE FANG+ ETF is a very attractive proposition at an expense ratio of only 0.33%. We are expecting a lot of demand for this offering. ETF as a category has been very popular in the US markets for quite some time, and we are now seeing ETFs gain acceptance in India as well, with 27% of Paytm Money’s equity users already owning at least one ETF in their portfolio. ETFs are a great way to build long-term wealth, and we believe it will be one of the most important investment instruments for the next decade of investing in Indian capital markets."
NYSE FANG+ ETF is the lowest cost alternative, followed by direct mutual fund. ETF also offers the most amount of flexibility against other alternatives, and for the majority of investors, NYSE FANG+ ETF should be the preferred route. For a small proportion of users who intend to invest a small sum and are unable to open a Demat Account, the Direct MF route might be suitable. Regular MF turns out to be the most expensive because of the distributor commissions involved.
NYSE FANG+ Index is a focused index and includes the original FANG companies + 6 tech leaders in the global Markets - Apple, Alibaba, Baidu, Nvidia, Tesla and Twitter. Most of these are household names for millions of Indians, and the NFO is expected to be a success, driven primarily by the impressive 102% return delivered by NYSE FANG+ Index over the last year. The underlying tech stocks like Tesla delivered 390% return, and Google (Alphabet) delivered 80% return during this period.
