NIFTY vs NASDAQ for Investing in Nov2022

I want to invest in Equity index fund/ETF for long term (> 5-10 years)

Nifty is near all time high.
NASDAQ is almost 32% down. (MON100 ETF is almost 26% down)

Will it be better to invest in NASDAQ (via MON100 etf) instead of NIFTYBEES as of now?

Please share your opinions.

I think investment to NASDAQ 100 is stopped through MON100 ETF (and mutual funds) because of overseas investment limit set by SEBI.
Not sure about buying Nasdaq QQQ from INDMoney/Vested app.
However, I believe the correction in Nasdaq is lucrative and starting an SIP could result in long term capital appreciation. Nasdaq currently taking support from 0.618 Fib level. If it breaks it there will be some more downside.

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Thanks for the Insight.

Regarding MON100 I heard following news some time back. From news It appears that the this etf MON100 is working fine now, because market makers are working again in it.
Kindly ckeck, and correct me if I am wrong.

And in the graph on following site, we can see that the tracking error between NAV and ETF price is now normal (it became very high in May this year when SEBI stopped market makers in this ETF).

You can go for ICICI NASDAQ 100 Index fund… This is direct investing so less tracking error problem unlike ETF’s. Also AUM is 350 crores which is pretty decent

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I think ETFs relating to Nasdaq is working just fine. I am invested in Motilal Oswal Nasdaq 100 and I can buy and sell like normal.

The only variance, I found few months back was iNAV of the ETF was lower than the market price. This was because of stoppage by index funds due to limitations set by RBI, hence greater demand by investors to buy nasdaq etf. Apart from this, there was no issue.

I believe this is the time to invest in Nasdaq which is available - as you rightly said at 32% down. The composition of Nasdaq are top corporates and hence this is the best time to invest in Nasdaq ETF.

Disclaimer: Not an expert, but invested in Nasdaq 100.

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Thanks for the suggestion,
but I buy from regular broker and they don’t sell direct MF.
So if I buy index fund from them they charge expense ratio of 1% for NASDAQ index fund.

And etf is charging only 0.5%. So I am more inclined towards buying etf.

you can buy from zerodha/groww/kuvera/Etmoney/Kotak securities they all offering direct plans

I am using Kotak securities (full time broker), they have both regular and direct plans

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WOW, I didn’t know full time brokers also provide direct mutual funds.
Do they have that option by default or you asked them seprately to provide direct option to you ?

Note: I asked from HDFC sec employee about availability of direct mutual fund option, He said they don’t provide direct option. And then he started convincing me that direct are similar as regular until one invest for more than 20yrs.

In Kotak Securities both will be displaying so while ordering you have to select it. refer the snapshot

The reason i selected Kotak Securities is, My DEMAT account comes for free along with savings account. I thought instead of using separate app for mutual funds i thought to use this itself. There is yearly AMC charges but I am okay with it.

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Thank you for detailed description.

Did you know before opening the account that Kotak Sec offer Direct MF?

I am asking because I want to know “How to find which full time broker offer direct MF”.
I also searched on internet, but I couldn’t find it.

Nope… I opened account 3 years before but 1 year before only i came to know about mutual funds.

But, why do you want to stick to full service broker?

Mainly because of trust factor,
I want to stick with full time broker for 80% of my investment.
remaining 20% i invest with zerodha.

I know Nitin Kamath seems like a nice guy who will not do shady stuff and will not cause us any problem.
But still I want to keep most of my investment with big finance players.
Ofcourse big players can also fail, but chances of that happening is less compared to small players.

Same feeling. so i kept majority with full time broker

I have traded with a full service broker for couple of years and I can say that it was a bad experience. The relationship agent used to call me every week or in couple of days to execute some trades so that he can meet his monthly targets of volumes. I initially used to agree with him thinking he is an expert because I was new to stock market. Later only I realized he was simply executing trades, with margins, and when I looked at my P/L I was in net loss. The only gainer was the broker (Brokrage+ margin interest) and him.
Moreover, there was no CDSL T-PIN like auth to pledge/sell the stocks. To my surprise he also pledged my holdings for margin. Brokerage was too high. There used to be some money (charges) deducted from my bank account which I never understood.
Since I started using Zerodha I realized how foolish I was. Don’t fall in trap of online marketing saying that full service brokers are trustworthy. At least here in Zerodha you have your MF/ETF/Stocks in CDSL depository which can not be transacted without OTP based authentication and charges are transparent.


Zerodha is a big player now. Highest no of clients, apparently much higher revenue per customer too ( vs upstox as per a vid). Probably most profitable too - 1000cr+

Most of the problems you described mainly occurred because you were new to this system. And since you know alot of things about the system now, I am sure you won’t let most of these problems happen again. :+1:

I have learnt in life that;
if there is even a small possibility that the person I am talking might gain some money from me then I don’t trust them at all. This will inculde shopkeeper, bank people, insurance agents, doctors, etc. I listen to all they have to say but I do my own research and draw concusions and might take opinions from third person also.
Eg, One time I caught a BIG insurance employee lying to me, and when I asked them to prove it, they said there is no point in discussing with me and ended the call. LOL :rofl:

I would like to ask you, are you are comfortable in keeping your whole life savings with zerodha ?
No matter how much money it may be, like 5L, 10L, 50L, 1Cr… etc ?
No matter how long it took you to accumulate that money, like 2yrs, 5yrs, 10yrs, 20yrs, 40yrs, 60yrs… etc ?
I hope you are getting my point; after a certain time in life TRUST becomes the MOST IMPORTANT thing.

I know everything is safe with CDSL behind OTP, but still if something bad happens then we don’t know:
How difficult it will be get our money back?
How much time it will take?
Can the govt. cease the demat accounts for some time?
etc etc.

Zerodha is the best broker if we consider Interface and ease of use. No doubt about it.
I hope some day Zerodha will also become very big.
When some things are tooooo BIG, even GOVERNMENT won’t allow them to fail.

FYI: I also use and love zerodha too :sparkling_heart: along with full time broker.

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First point: in your reply, we have to use the words like probably.
Second point: Zerodha is very easy to sign up, and with all the youtubers making videos about it, every kid with bank account can open zerodha account from mobile. And even if he invest 100 or 500 Rs and then forget zerodha, he will remain a lifetime client of zerodha. So I don’t know how good it is to compare the brokers by using the number of clients.

We need a better indicator.
Maybe, total value of assets hold by the clients of each broker.

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I say probably everywhere because i don’t know everything with certainty. Just do a google search and you will get your ( probable) answer. Higher Profitability vs competition also implies that their per user profits are good. A recent video in yt indicated as much - just divide profit or revenue by no of users. And they do this without mis selling.

Anyway, personal preference is your own.
But in my mind Z is as safe as any another other broker in India, probably safest, and whole ecosystem has been made much safer by SEBI rules and leverage reduction. I will never use a ‘full service’ broker. That’s my preference.

Too big to fail if it applies to any broker, Z has to be one of them. But i don’t think we can do such wishful thinking. Karvy was a large broker and it failed. Best to keep money with different brokers if you are concerned.

Is it good to invest in MON100 bought some yesterday. I want to invest for long term, keep adding whenever I have money. I am doing it with all the bees, like niftybees, juniorbees, bankbees, itbees and goldbees.

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Again I am not sure if profit per client is also the best indicator.

But you are correct in saying that dividing the total money among different brokers reduces the risk.

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