The NASDAQ 100 has delivered around 23% CAGR in INR terms over the past decade, compared to 11–12% for Nifty 50 / Nifty Next 50. For Indian investors looking to diversify internationally and gain exposure to the world’s leading tech companies, it is a compelling option.
This post covers what the NASDAQ 100 is, the available routes to invest from India, a comparison of Indian apps vs direct international brokers, my personal choice, the full process, cost overhead, and tax implications.
What is the NASDAQ 100 Index?
The NASDAQ 100 is an index of the top 100 non-financial companies listed on the NASDAQ stock exchange. The top 10 holdings make up around 50-55% of the index weight, dominated by companies like Apple, Microsoft, NVIDIA, Amazon, Meta, Alphabet, and Tesla.
Why Invest in NASDAQ 100?
- Exposure to world-leading tech innovators
- Geographical and currency diversification of the portfolio
- INR historically depreciates (~4% annually) against USD, which boosted INR returns from US investments
- Phenomenal growth engine over the past decade
- 23% CAGR for NASDAQ (in INR) vs 11–12% for Nifty 50 / Nifty Next 50
- Long-term growth potential driven by Cloud and AI era
Risks to Consider
- Heavy tech concentration and limited sector diversification
- Top-heavy with a few dominant companies
- Sensitive to global regulatory or backlash events impacting US tech firms
How to Buy NASDAQ 100 from India?
📺 Watch on YouTube (First video I ever posted, excuse me for the low volume)
📽️ Alternatively you can look at the Slide as well.
There are three main routes:
1. Mutual Funds
Examples:
- Kotak US Specific Equity Passive FOF (ETF)
- ICICI Prudential NASDAQ 100 Index Fund (Stocks)
Challenges: Mutual fund houses are not accepting new lump sum or SIP registrations due to investment limits. The industry has an overall cap of $7B, with $1B per AMC and $1B for international ETFs.
2. ETF Listed on Indian Stock Exchanges
Example:
- Motilal Oswal NASDAQ 100 ETF
Challenges: Due to the set limits, this ETF is not reliably tracking the underlying index.
3. Managing via LRS Route
The Liberalised Remittance Scheme (LRS) allows Indian residents to remit up to $250,000 per year abroad for permitted purposes including investments, education, travel, and gifts.
Challenges:
- Need to set up an international brokerage account (directly/indirectly)
- Need to manage buying stocks/ETFs yourself
- Transfer money from Indian Bank account to Brokerage account (INR to USD)
- Remittance above ₹10,00,000 incurs TCS at 20%
- Need to use 12BAA Form to adjust TCS collected against salary TDS for improved cashflow
- More tax reporting in Schedule FA and Schedule FSI of ITR 2
Note: This post focuses on the LRS route.
Approach 1 — Indian Apps enabling investment in US stocks/ETFs
Platforms like INDmoney and Vested offer an easy entry point into international investing.
Typical structure: India → LRS remittance → US brokerage → US stocks / ETFs
Common NASDAQ/S&P 500-related ETFs available:
- QQQ — Invesco QQQ Trust, Series 1
- VOO — Vanguard S&P 500 ETF
- SPY — State Street SPDR S&P 500 ETF Trust
Pros
- Very easy onboarding
- Integrated INR → USD remittance
- Beginner friendly
- Low or zero brokerage
Cons
Limited investment universe: Only US-listed securities are available. You cannot buy UCITS ETFs listed in Europe, which many international investors prefer for tax and structural reasons.
Dividend drag: Most US stocks and ETFs distribute dividends. Unlike accumulating ETFs, these dividends are paid out in cash, requiring manual reinvestment — and small amounts may sit idle outside the market.
Tax and reporting implications:
- ~25% US withholding tax on dividends (reduced treaty rate from the standard 30%. To submit W-8BEN for 25% rate)
- Foreign tax credit can be claimed in India
- Dividend income is taxed in India at your slab rate
- Dividend income must be declared annually in ITR-2
- Schedule FA must disclose foreign holdings; Schedule FSI must report dividend income
- Tax is paid every year, creating a recurring tax drag and additional reporting
US estate tax risk: Non-US investors holding US-domiciled securities (QQQ, VOO, etc.) face potential estate tax exposure above $60,000, with rates up to 40%.
Approach 2 — International Broker + UCITS ETFs
Instead of US-listed ETFs, some investors (including me) use Interactive Brokers (IBKR) to buy UCITS ETFs listed on European exchanges.
Typical structure: India → LRS / FX transfer → IBKR → UCITS ETF on European exchanges (LSE / EBS / etc.)
You can access IBKR either directly or via an Indian introducing broker that uses IBKR as the underlying platform:
| Broker | Type | Notes |
|---|---|---|
| Interactive Brokers (IBKR) | Direct | Best pricing; no intermediary markup |
| ICICI Direct Global | Custodian broker (IBKR) | Additional brokerage layer on top of IBKR costs |
| Paasa | Custodian broker (IBKR) | India-friendly UX; additional fee layer |
Introducing brokers offer a more familiar Indian interface and bundled remittance, but at an extra cost. For cost-conscious investors, opening IBKR directly is more economical.
Example NASDAQ 100 ETFs:
- CNDX: iShares Nasdaq 100 UCITS ETF (Acc)
- EQQQ: Invesco EQQQ Nasdaq-100 UCITS ETF Acc
These ETFs are typically:
- Irish domiciled — 15% US dividend withholding tax instead of 30%
- Traded on European exchanges (e.g. London Stock Exchange) in USD
- Available in accumulating share classes — dividends reinvested inside the ETF, no payout
- Often lower TER
- Regulatory framework designed for cross-border investors
Dividend flow: US companies → ETF (15% withholding) → reinvested inside ETF → no payout to investor
No US estate tax exposure as these are Irish-domiciled funds.
This is why international investors from Europe, Asia, and the Middle East often prefer UCITS ETFs over US-domiciled ETFs.
Tax and reporting implications:
- Capital gains tax applies only when selling
- Schedule FA must disclose foreign holdings annually
- Schedule FSI needs to be reported only when selling the ETFs
- No yearly dividend tax drag
Comparison: Indian Apps vs IBKR
| Factor | US ETFs | Irish UCITS ETFs |
|---|---|---|
| Dividend tax rate | Slab rate | 15% within the ETF |
| Dividend taxation timing | Paid yearly | Not applicable |
| US estate tax exposure | Yes (above $60k) | No |
| Schedule FA reporting | Yes | Yes |
| Schedule FSI reporting | Yes, annually | Only when ETF is sold |
When Each Approach Makes Sense
Indian apps (INDmoney / Vested):
- Beginners and small investments
- Buying US stocks directly
- Simple setup with integrated remittance
IBKR with UCITS ETFs:
- Larger international portfolios
- Long-term ETF investing
- Tax-efficient accumulating ETFs
- Access to global exchanges (LSE, EBS, etc.)
My Choice: ANAU/XNAS via IBKR
There are several Irish-domiciled accumulating UCITS ETFs tracking the NASDAQ 100.
Here is a comparison of the available options (data as on 14 Mar 2026):
| Symbol | Name | TER | Fund Size | USD Exchanges (Ticker) | ISIN |
|---|---|---|---|---|---|
| CNDX | iShares Nasdaq 100 UCITS ETF (Acc) | 0.30% | $21,439m | LSE (CNDX), SIX (CSNDX) | IE00B53SZB19 |
| EQQQ | Invesco EQQQ Nasdaq-100 UCITS ETF Acc | 0.30% | $3,511m | SIX (EQAC) | IE00BFZXGZ54 |
| ANAU | AXA IM NASDAQ 100 UCITS ETF USD Acc | 0.14% | $1,804m | SIX (ANAU) | IE000QDFFK00 |
| XNAS | Xtrackers Nasdaq 100 UCITS ETF 1C | 0.20% | $1,708m | LSE (XNAS) | IE00BMFKG444 |
| QQQA | UBS Nasdaq-100 UCITS ETF USD Acc | 0.13% | $118m | SIX (QQQA) | IE000SB4G4I4 |
- All are full replication, accumulating, Irish-domiciled ETFs. See live data: JustETF — NASDAQ 100 UCITS ETFs
- I buy XNAS on LSE and ANAU on SIX, both in USD.
- ANAU has a lower TER at 0.14%; XNAS has a slight edge in LSE liquidity.
- The UBS option (QQQA) has the lowest TER (0.13%) but a very small fund size ($118m) — worth watching as it grows.
The Chain Involved
| XNAS | ANAU | QQQA | |
|---|---|---|---|
| Investor | Via Interactive Brokers (IBKR), India | Via Interactive Brokers (IBKR), India | Via Interactive Brokers (IBKR), India |
| Exchange | London Stock Exchange (LSE), UK | SIX Swiss Exchange, Switzerland | SIX Swiss Exchange, Switzerland |
| ETF Domicile | Ireland | Ireland | Ireland |
| Issuer / Manager | DWS Group (Xtrackers), Germany | AXA IM, France | UBS Asset Management, Switzerland |
| Underlying Index | NASDAQ 100, USA | NASDAQ 100, USA | NASDAQ 100, USA |
Step-by-Step Process
Step 1: Transfer Money to IBKR (INR → USD)
- Login to your bank’s remittance portal (e.g. HDFC RemitNow, ICICI Money2World)
- Convert ₹ (INR) to $ (USD) and send to your IBKR account
- Funds are typically credited in T / T+1 days
To reduce the FX markup on this transfer, consider using FX Retail — it can save ₹1,000–₹1,600 per $1,000 transferred.
Adding a deposit notice in IBKR speeds it up. Need to add IBKR account id and name in the transfer message.
Step 2: Place Buy Order via IBKR
- Login to IBKR
- Search for XNAS on LSE (or ANAU on SIX) in USD
- Check the previous day’s NAV vs current market price
- Place a buy order at the current market price
Buying Cost Overhead
| Cost Component | Details |
|---|---|
| INR to USD conversion | Bank spread ~1.75%; charges vary by bank + GSTs |
| ETF spread | Bid/ask spread typically 0.02%–0.2% depending on liquidity |
| Brokerage | Direct IBKR charges ~$1 per order |
| ETF management cost (TER) | XNAS: 0.2% / ANAU: 0.14% / CSNDX: 0.3% |
Two options to reduce the INR to USD mark up,
- Negotiate with the bank for discounted rate before remitting.
- See Funding IBKR from India Using FX Retail for how to reduce this markup significantly.
Taxation
TCS via Form 12BAA
- Previously, TCS (Tax Collected at Source) on LRS remittances could only be adjusted at ITR filing time.
- Form 12BAA now allows companies to adjust TCS/TDS against salary TDS — reducing cash flow impact during the year.
- Though TCS can be adjusted against salary TDS, for me it was done in a prorated remaining months basis, still better than waiting for ITR refund.
Tax Filing via ITR 2
Investing via the LRS route requires ITR 2 (not ITR 1). Key disclosures:
| Schedule | Purpose | When |
|---|---|---|
| Schedule FA | Foreign Assets | Every year |
| Schedule FSI | Foreign Source Income | Only on sale (UCITS) / Every year (US ETFs) |
Non-disclosure of foreign assets attracts penalties under the Black Money Act 2015. This involves more paperwork compared to domestic mutual funds, but becomes manageable once you are familiar with the process.
Disclosure: I personally invest in NASDAQ 100 through UCITS ETFs via ICICI Direct Global/Interactive Brokers, planning to switch over to direct IBKR.