Invest in NASDAQ 100 from India

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  <h2>Sakthi Priyan H</h2>
  <h2>Building Wealth</h2>
  <h4 class="fragment">presenting</h4>
</section>
<section data-autoslide="2500">
  <h2>Invest in NASDAQ 100 <br/>from India</h2>
  <h4 class="fragment">Oct 12, 2025</h4>
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### Disclaimer

|                         |                                                             |
|-------------------------|-------------------------------------------------------------|
| Investment Risk         | Investments may go up or down; principal may be lost        |
| Past Performance        | Past results do not guarantee future outcomes               |
| Not Financial Advice    | For educational purposes only; consult a financial advisor  |
| Personal Responsibility | Viewers are responsible for their own decisions             |
| Regulatory Note         | Follow laws; international investments may have extra rules |

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### Contents

- NASDAQ 100 Index
- How to buy from India?
- Buying NASDAQ 100 Index: My Choice
- Buying Cost
- Taxation

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## What is NASDAQ 100 Index?
<div class="r-stack">
  <img src="nasdaq100.png"/>
  <img class="fragment" src="top10.png"/>
  <span class="fragment" style="background: rgba(238, 238, 238, 0.8); font-size:4.0em;padding:1em 2em 1em 2em;">72%</span>
</div>

## Why NASDAQ 100 Index?
- Exposure to world-leading tech innovators
- Geographical and currency diversification of the portfolio
- Phenomenal growth engine over past decade
- 23% CAGR for NASDAQ (in INR) vs 11-12% for Nifty 50/Nifty Next 50
- Long term growth of these top companies in Cloud/AI era

## Risks of the NASDAQ 100 Index
- Heavy tech concentration & limited sector diversification
- Top-heavy with a few dominant companies  
- INR vs USD currency movements (historically around -4% yearly)
- Sensitive to global regulatory or backlash events impacting U.S. tech firms

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## How to buy from India?

1. Mutual Funds
2. ETF listed in Indian stock exchanges
3. Managing via LRS route

### 1. Mutual Funds
- Kotak US Specific Equity Passive FOF (ETF)
- ICICI Prudential NASDAQ 100 Index Fund (Stocks)
<br/><br/>

#### Challenges
- Access Restricted : Mutual fund houses are not accepting new lump sum or SIP registrations.
- Investment Limits: Overall industry cap of $7B, with $1B per AMC and $1B for international ETFs.

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### 2. ETF listed in Indian stock exchanges
- Motilal Oswal NASDAQ 100 ETF
<br/><br/>

#### Challenges
- Due to set limits ETF is not really tracking the index

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### 3. Managing via LRS route
- 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.
<br/><br/>

#### Challenges
- Manage buying Stocks/ETFs ourself
- Need to setup international brokering account
- \> ₹10,00,000 incurs TCS @ 20%

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### Buying NASDAQ 100 Index: My Choice

#### Direct US Stocks/ETFs 
1. Easy NASDAQ access 
2. 30% US dividend tax and no accumulation
3. Higher India taxation overhead
<br/><br/>

#### My Choice – XNAS (LSE)
Xtrackers NASDAQ 100 UCITS ETF 1C → tracks NASDAQ 100
1. Irish-domiciled → 15% US dividend tax  
2. Accumulating ETF → no dividend payout → minimal tax reporting in India 
3. Traded in USD on LSE
4. Competitive TER (Total Expense Ratio) → better volume compared to alternate USD based ETFs

#### Why XNAS Listed in LSE?
- **India:** Via ICICI Direct Global / Interactive Brokers (IBKR)  
- **UK:** XNAS (USD) listed on London Stock Exchange (LSE)
- **Ireland:** Domicile reduces US dividend tax
- **Germany:** Managed by DWS Group (ETF manager)  
- **US:** NASDAQ 100 made up of top 100 non-financial US companies

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<h4>Step 1/2: Transfer Money to IBKR</h4>
<div class="r-stack">
  <ul>
    <li>ICICI Bank > Fund Transfer > Money2World</li>
    <li>Converts ₹ (INR) to $ (USD) </li>
    <li>Typically T/T+1 day for amount to be credited</li>
  </ul>
  <img class="fragment" src="icicibank.png"/>
  <img class="fragment" src="m2w1.png"/>
  <img class="fragment" src="m2w2.png"/>
  <img class="fragment" src="m2w3.png"/>
  <img class="fragment" src="m2w4.png"/>
  <img class="fragment" src="m2w5.png"/>
  <img class="fragment" src="m2w6.png"/>
  <img class="fragment" src="m2w7.png"/>
</div>

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<h4>Step 2/2: Place Buy Order on XNAS via IBKR</h4>
<div class="r-stack">
  <ul>
    <li>ICICI Direct > Global Invest > Invest Now</li>
    <li>Check previous day NAV vs market price </li>
    <li>Buy using current market price</li>
  </ul>
  <img class="fragment" src="icicidirect.png"/>
  <img class="fragment" src="icicidirectg.png"/>
  <img class="fragment" src="ibkr.png"/>
  <img class="fragment" src="xnas.png"/>
  <img class="fragment" src="order_preview.png"/>
  <img class="fragment" src="order.png"/>
  <img class="fragment" src="watchlist.png"/>
</div>

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## Buying Cost Overhead
- **INR to USD conversion loss** (Bank spread ~1%, charges may vary)
- **ETF buying cost** (NAV ±2%, IBKR $4 per order)
- **ETF management cost** (TER: XNAS 0.2%, ANAU 0.14%, CSNDX 0.3%)

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## Taxation
### TCS adjustment via form 12BAA
- Earlier: TCS adjusted only at ITR filing
- Form 12BAA: Companies can adjust TCS/TDS against salary TDS
<br/><br/>

### Tax Filing using ITR 2
- Disclose foreign assets & income as per Indian law
- Non-disclosure → penalties (Black Money Act 2015)
- Foreign Assets: Schedule FA
- Foreign Income: Schedule FSI
- More paperwork compared to mutual funds

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  <h2>Sakthi Priyan H</h2>
  <h2>Building Wealth</h2>
  <h4 class="fragment">Thank you !</h4><br/><br/>
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