How to invest in S&P 500 Index Fund from India?

Have seen that Motilal Oswal earlier launched but for some reasons they stopped (temporarily).

Is there any alternative way to invest in S&P 500 Index Fund from India? I know that NASDAQ 100 exists, but would like to know about S&P 500 Fund. Thanks

Even if there is, stick to Indian markets. It’s simple and has better potential for investors.
For f&o players, it’s totally opposite.

I feel investing in India is great considering taxation. International funds are treated like Debt funds in terms of taxation (LTCG- 20% (with indexation)). Whereas for our domestic equities (LTCG - 10% after one lakh). So the extra profit you are expecting from U.S. markets will be eroded by tax. Also you can’t expect very high returns by investing in U.S index funds (12-14% you can expect).

If you don’t want to miss companies like AMAZON, GOOGLE, MICROSOFT and other global leaders, you can directly invest in U.S stocks through apps like INDMoney and so on. Becz, Investing in U.S index will not give more returns than NIFTY 50 based on historical data. But investing in U.S specific growth stocks might yield more returns.

If you feel geography diversification, Then Invest directly in U.S Stocks.

**These are just my opinions. Do enough research and take decisions accordingly

Some must have signed for vanguard ETF. They must have idea

The point behind index investing in the US is basically to get similar returns like that of the Nifty but also benefit yourself from the long-term rupee depreciation just a couple of years back it was in the 40-50 range and is now at the 75-80 range.
even if you had 12% CAGR, it would have been like 20-25% when also considering rupee depreciation.
Correct me if I’m wrong. :sweat_smile: :sweat_smile:

This is incorrect.

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Blue line is Sensex in USD.
Teal line is S&P500
Orange line is Sensex in INR.

The chart is from May 2006 till date.

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happened to read this piece in money control. Gives you various option on how to invest overseas.

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Continuing further to this post - this is a comparison of Sensex PR index in INR vs the S&P500 PR index in INR.

The chart is from 1979 till date. Sensex has outperformed the US markets over a 40+ year period despite all the currency depreciation.


Wonder, if you could generate a similar graph for Nifty 50 vs Nasdaq 100 in INR terms. Great graph you have generated.

Not a great believer in investing “entire market” philosophy i.e S&P500. 500 stocks is too much of a diversification and Mr.Charlie Munger says “The idea of excessive diversification is madness.”

Disclaimer: Invested in both Nifty 50 and Nasdaq 100 (motilal oswal etf)

Here -

Nasdaq data is available from 1985. It has outperformed the Sensex by 3x during this period.

Such charts are sensitive to starting point bias and a better comparison would be to look at rolling returns. For example - if someone invested in Nasdaq at the peak of the tech bubble in 1999/2000, then they would have underperformed by a mile, even after 20 years.

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This is because of the Indian MF industry is close to hitting the overseas investment limits set by RBI. But Motilal has temporarily reopened investments in S&P 500 fund. You can invest on Coin.

Thank you truly appreciate the graph.

No there is no buy option still added.

Am invested in the S&P 500 fund too, but don’t think it has re-opened yet:

If the RBI wanted to do it, they’d have increased the limit long time back. This way the funds get diverted to our domestic equity market…

Geographical diversification in itself is a nice feeling, it may not necessarily translate into returns, if one is investing small. The issue of allocation should also be looked at, not just the geographical diversification, while investing in foreign countries. If the allocation is not meaningful w.r.t Indian equities, it may not bring any considerable change to the overall return of the PF.

Of course, one can invest just to start a conversation in the cafeteria too, this is different :coffee:

Dude 1 - I started a new SIP in Midcap 150 index.

Dude 2 - I bought some units in S&P 500 index.


Motilal Oswal has released this recently:

Source: Notice - Motilal Oswal MF

From the above notice/screenshot (second last para), MOS is continuing to restrict purchase/SIP on S&P 500 Index Fund, NASDAQ 100 ETF FoF & MSCI EAFE Top 100 Select Index Fund

Mirae has reopened the schemes for their FoFs. The S&P Top 50 is very well correlated with the broader S&P 500 index.

One has to check the expense ratio if investing in FoFs, it will be more compared to investing in ETFs. I wouldn’t be surprised if the expense ratio of FoFs is 1% or above.

The ETF has an expense of 0.60% and the FoF additionally has an expense ratio of 0.29%.

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