Best ways to get NASDAQ exposure from India: Direct vs indirect
Indian investors seeking NASDAQ 100 returns have four distinct pathways available. They can use direct US brokerage accounts, Indian mutual funds, domestic ETFs, or Fund of Funds. The optimal choice depends on investment size, holding period, and comfort with complexity.
The NASDAQ 100 delivered 21% returns in 2025 and currently trades near 25,327 points. Technology giants dominate this index, with NVIDIA at 13.4%, Apple at 9.3%, and Microsoft at 8.6%, accounting for over 31% of total weight. For Indian investors, rupee depreciation adds approximately 3-5% annual returns on top of dollar-denominated gains. However, regulatory complexity and the 20% TCS above ₹10 lakh require careful navigation before choosing your investment route.
Direct investment via US brokers offers the lowest long-term costs.
Investing directly in US stocks and ETFs through the Liberalised Remittance Scheme provides access to the most cost-efficient vehicles. QQQ charges just 0.18% expense ratio while QQQM costs only 0.15%. These rates are nearly four times lower than Indian alternatives, which charge 0.58-0.78%.
US brokers accepting Indian residents include Interactive Brokers and Charles Schwab. Interactive Brokers offers the most comprehensive access with 170+ global markets and tiered pricing from $0.0035 per share. Charles Schwab provides a Schwab One International account,s though with some ETF access restrictions.
Indian platforms enabling direct access have proliferated rapidly. Vested Finance offers 5,000+ securities with a 0.15-0.25% brokerage fee and a maximum of of $35 per trade. INDmoney provides 9,000+ securities and charges 0.15% brokerage plus a 0.75% platform fee capped at ₹1,000. Winvesta charges 0.05-0.25%, depending on tier, with zero joining fees. Groww offers zero-commission US stock trading through its partnership with Alpaca Securities.
For an in-depth analysis of fees, features, and reliability across different platforms, explore our detailed guide comparing US stock trading platforms for Indian investors.
The LRS limit remains $250,000 per individual per financial year,r unchanged for FY 2026-27. Eligible purposes include equity shares, mutual funds, ETFs, and opening foreign currency accounts. Documentation requirements include a PAN card, a passport, a Form A2 declaration, and the appropriate purpose codes.
For a detailed walkthrough of the complete process, read our comprehensive guide on LRS rules for US stock investing that covers documentation, bank procedures, and compliance requirements.
Budget 2025 increased the TCS threshold from ₹7 lakh to ₹10 lakh, providing relief for smaller investors. For investment remittances exceeding this threshold, 20% TCS applies on the excess amount only. This TCS is not an additional tax; it is an advance tax credit claimable when filing the ITR, or refundable if the total tax liability is lower.
FATCA compliance requires filing Form W-8BEN with US brokers to certify non-US status. This form requests a 25% reduction in dividend withholding, rather than the 30% under the India-US DTAA. The form remains valid for three years and must list your PAN as the foreign tax identification number.
Indian mutual funds with NASDAQ exposure offer simplicity
The SEBI-imposed $7 billion industry cap on overseas investments has created significant constraints. The $1 billion ETF-specific limit was breached in April 2024, forcing many funds to suspend fresh investments. Approximately 70 schemes focus on overseas investing, and most currently do not accept new lump-sum investments, though existing SIPs may continue.
Motilal Oswal NASDAQ 100 Fund of Fund dominates with ₹6,159 crore AUM and the oldest track record since November 2018. It delivered 38.11% three-year returns with a direct plan expense ratio of 0.22% plus 0.58% in underlying ETF expenses, for a total effective cost of 0.80%. Minimum SIP is ₹500 with 1% exit load only if redeemed within 15 days.
Navi NASDAQ 100 FoF offers the lowest cost, with a 0.16% expense ratio, investing in the Invesco NASDAQ 100 ETF. With ₹1,061 crore in AUM, it delivered 34.37% three-year returns and charges a zero exit load with a ₹100 minimum SIP.
Kotak NASDAQ 100 FoF manages ₹3,770 crore and charges 0.24% for the direct plan. It offers zero exit load and a minimum investment of just ₹100. The fund invests in iShares NASDAQ 100 UCITS ETF USD.
ICICI Prudential NASDAQ 100 Index Fund stands apart by directly holding NASDAQ 100 constituent stocks rather than investing through overseas ETFs. With an AUM of ₹2,622 crore and a 0.61% expense ratio, it provides direct index exposure without a double-layer FoF structure.
ETFs listed in India vs. the US reveal significant cost differences
The Motilal Oswal NASDAQ 100 ETF is India's primary vehicle for direct exposure to the NASDAQ 100. With ₹11,241 crore in AUM and a 0.06% tracking error, it performs well within international ETF categories. However, its 0.58% expense ratio is nearly four times that of US alternatives.
US ETF options are substantially cheaper. QQQ reduced its expense ratio by 10% in December 2025 to 0.18% after converting from a Unit Investment Trust to an open-ended fund structure. With $400+ billion in AUM and 53.8 million shares traded daily, it offers unmatched liquidity. QQQM charges only 0.15%, making it ideal for buy-and-hold investors, though it has a lower trading volume of around 4.1 million shares daily.
The Indian ETF requires a demat account with an Indian broker such as Zerodha, Groww, or HDFC Securities. It trades on the NSE during Indian market hours. The NAV timing mismatch creates a 0.5-2% premium or discount relative to the NASDAQ 100's actual value, as NAV is calculated at 11:30 PM IST based on the US close, while trading occurs between 9:15 AM and 3:30 PM IST.
Fund of Funds provides the simplest entry point.
A fund invests in other mutual funds or ETFs rather than directly holding stocks. Indian FoFs targeting NASDAQ typically invest in US-listed ETFs such as QQQ or the iShares NASDAQ 100 UCITS ETF. This creates a double layer of expenses, where you pay both the Indian FoF's expense ratio and the underlying fund's expense ratio.
The primary advantage of FoFs is simplicity. You invest in rupees without any LRS paperwork. There is no TCS implication below the ₹10 lakh threshold. No foreign asset reporting is required on your tax return. The minimum investment is as low as ₹100, making it accessible to beginners starting their investment journey.
FoFs automatically handle currency conversion and rebalancing. They provide NAV-based pricing without the premium or discount issues that ETFs face. SIP functionality works seamlessly, allowing systematic monthly investments without manual intervention. For investors with less than ₹5 lakh and a holding period of less than two years, FoFs often prove more cost-effective than direct routes.
Complete cost comparison across all investment routes
For a ₹1 lakh investment held for one year, costs vary significantly. Direct US investment via QQQM through Vested costs approximately ₹1,650-2,500, including 0.15% ETF expense, 0.25% brokerage each way, 1% forex spread, and ₹500 wire transfer. Indian ETF route costs ₹780-85,000, including a 0.58% expense ratio and a 0.2% STT round trip. Indian FoF direct plan costs approximately ₹ 80, with a total expense ratio of 0.80%.
For ₹10 lakh investment held for five years the dynamics change. Direct US investment via QQQM incurs cumulative costs of ₹18,000- ₹ 25,000, with one-time forex and transfer costs amortised over the period. Indian ETF costs approximately ₹34,000 over five years. Indian FoF costs around ₹42,000 for the same period.
The break-even analysis reveals that for investments under ₹5 lakh held for less than two years, an Indian ETF or FoF is more cost-effective. For holdings above ₹10 lakh with a holding period of three years or more, direct US investment yields 0.3-0.5% annually after amortising one-time costs.
Tax treatment differs by investment route.
For direct US holdings, dividends are subject to a 25% withholding at source by US brokers when a W-8BEN is filed. Without W-8BEN, the rate jumps to 30%. This withheld amount can be claimed as Foreign Tax Credit under the India-US DTAA by filing Form 67 before your ITR. The remaining dividend amount is added to income at the applicable slab rates, with a credit for US tax paid.
Indian mutual funds and ETFs automatically reinvest dividends into NAV. This defers taxation until redemption, creating a meaningful advantage for accumulation-phase investors who do not need regular income.
Capital gains taxation follows similar rules across routes. Long-term capital gains on holdings held for more than 24 months are taxed at 12.5% without indexation. Short-term capital gains are taxed at your income slab rate. The Budget 2024 simplified taxation by reducing the LTCG rate from 20% to 12.5% and removing indexation benefits for international funds.
US estate tax creates a significant risk for larger portfolios held directly. Non-US persons holding US-situs assets face estate tax exposure above just $60,000. Tax rates range from 18% to 40% on amounts exceeding $1 million, and there is no India-US estate tax treaty to provide relief. Mitigation strategies include keeping direct US holdings below $60,000 or using Ireland-domiciled UCITS ETFs, which are not subject to US estate tax.
Direct US investment triggers mandatory Schedule FA disclosure in ITR-2 or ITR-3 covering the calendar year. You must report account numbers, institution names, initial peak and closing values, and income earned. Penalties under the Black Money Act reach ₹10 lakh per year for non-disclosure.
Choosing the best option based on the investor profile
Small investors with less than ₹50,000 should choose the Navi or Kotak NASDAQ 100 FoF direct plan. The ₹100 minimum SIP, zero exit load, and rupee-based investing eliminate complexity. No LRS paperwork, no TCS, no foreign asset reporting, and simple taxation through Indian mutual fund rules make this the cleanest option.
Medium investors with ₹50,000-₹5 lakh should consider Motilal Oswal NASDAQ 100 FoF for SIP investing. For lump-sum investors comfortable with demat accounts,, the N100 ETF offersa a marginally lower total expense ratio at 0.58% versus 0.80%, but it requires monitoring NAV premiums and discounts.
Large investors with holdings above ₹5 lakh, especially ₹10 lakh and above, should consider direct US investment via Vested or Interactive Brokers. The 0.4-0.5% annual expense savings versus Indian alternatives compound meaningfully over time. Choose QQQM over QQQ for 0.03% expense savings. Factor the 20% TCS above ₹10 lakh into cash flow planning since it is refundable but ties up capital.
If your US portfolio might exceed $60,000, the estate tax risk may outweigh cost savings. Consider Ireland-domiciled UCITS ETFs available through Interactive Brokers, or maintain larger allocations in Indian funds.
SIP investors should prefer Indian FoF since SIP functionality is not available on US platforms in the traditional sense. You would need to transfer via LRS and purchase each month manually. FoFs offer true automated SIP with minimal friction and rupee-cost-averaging benefits.
The fundamental trade-off remains clear for Indian investors seeking NASDAQ exposure. You can choose between simplicity and regulatory ease with Indian vehicles, or lower long-term costs and direct market access through the LRS route. With a proper understanding of tax implications, estate planning, and compliance requirements, either path can deliver efficient exposure to global technology leadership that drives NASDAQ 100 returns.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Indian investors seeking NASDAQ 100 returns have four distinct pathways available. They can use direct US brokerage accounts, Indian mutual funds, domestic ETFs, or Fund of Funds. The optimal choice depends on investment size, holding period, and comfort with complexity.
The NASDAQ 100 delivered 21% returns in 2025 and currently trades near 25,327 points. Technology giants dominate this index, with NVIDIA at 13.4%, Apple at 9.3%, and Microsoft at 8.6%, accounting for over 31% of total weight. For Indian investors, rupee depreciation adds approximately 3-5% annual returns on top of dollar-denominated gains. However, regulatory complexity and the 20% TCS above ₹10 lakh require careful navigation before choosing your investment route.
Direct investment via US brokers offers the lowest long-term costs.
Investing directly in US stocks and ETFs through the Liberalised Remittance Scheme provides access to the most cost-efficient vehicles. QQQ charges just 0.18% expense ratio while QQQM costs only 0.15%. These rates are nearly four times lower than Indian alternatives, which charge 0.58-0.78%.
US brokers accepting Indian residents include Interactive Brokers and Charles Schwab. Interactive Brokers offers the most comprehensive access with 170+ global markets and tiered pricing from $0.0035 per share. Charles Schwab provides a Schwab One International account,s though with some ETF access restrictions.
Indian platforms enabling direct access have proliferated rapidly. Vested Finance offers 5,000+ securities with a 0.15-0.25% brokerage fee and a maximum of of $35 per trade. INDmoney provides 9,000+ securities and charges 0.15% brokerage plus a 0.75% platform fee capped at ₹1,000. Winvesta charges 0.05-0.25%, depending on tier, with zero joining fees. Groww offers zero-commission US stock trading through its partnership with Alpaca Securities.
For an in-depth analysis of fees, features, and reliability across different platforms, explore our detailed guide comparing US stock trading platforms for Indian investors.
The LRS limit remains $250,000 per individual per financial year,r unchanged for FY 2026-27. Eligible purposes include equity shares, mutual funds, ETFs, and opening foreign currency accounts. Documentation requirements include a PAN card, a passport, a Form A2 declaration, and the appropriate purpose codes.
For a detailed walkthrough of the complete process, read our comprehensive guide on LRS rules for US stock investing that covers documentation, bank procedures, and compliance requirements.
Budget 2025 increased the TCS threshold from ₹7 lakh to ₹10 lakh, providing relief for smaller investors. For investment remittances exceeding this threshold, 20% TCS applies on the excess amount only. This TCS is not an additional tax; it is an advance tax credit claimable when filing the ITR, or refundable if the total tax liability is lower.
FATCA compliance requires filing Form W-8BEN with US brokers to certify non-US status. This form requests a 25% reduction in dividend withholding, rather than the 30% under the India-US DTAA. The form remains valid for three years and must list your PAN as the foreign tax identification number.
Indian mutual funds with NASDAQ exposure offer simplicity
The SEBI-imposed $7 billion industry cap on overseas investments has created significant constraints. The $1 billion ETF-specific limit was breached in April 2024, forcing many funds to suspend fresh investments. Approximately 70 schemes focus on overseas investing, and most currently do not accept new lump-sum investments, though existing SIPs may continue.
Motilal Oswal NASDAQ 100 Fund of Fund dominates with ₹6,159 crore AUM and the oldest track record since November 2018. It delivered 38.11% three-year returns with a direct plan expense ratio of 0.22% plus 0.58% in underlying ETF expenses, for a total effective cost of 0.80%. Minimum SIP is ₹500 with 1% exit load only if redeemed within 15 days.
Navi NASDAQ 100 FoF offers the lowest cost, with a 0.16% expense ratio, investing in the Invesco NASDAQ 100 ETF. With ₹1,061 crore in AUM, it delivered 34.37% three-year returns and charges a zero exit load with a ₹100 minimum SIP.
Kotak NASDAQ 100 FoF manages ₹3,770 crore and charges 0.24% for the direct plan. It offers zero exit load and a minimum investment of just ₹100. The fund invests in iShares NASDAQ 100 UCITS ETF USD.
ICICI Prudential NASDAQ 100 Index Fund stands apart by directly holding NASDAQ 100 constituent stocks rather than investing through overseas ETFs. With an AUM of ₹2,622 crore and a 0.61% expense ratio, it provides direct index exposure without a double-layer FoF structure.
ETFs listed in India vs. the US reveal significant cost differences
The Motilal Oswal NASDAQ 100 ETF is India's primary vehicle for direct exposure to the NASDAQ 100. With ₹11,241 crore in AUM and a 0.06% tracking error, it performs well within international ETF categories. However, its 0.58% expense ratio is nearly four times that of US alternatives.
US ETF options are substantially cheaper. QQQ reduced its expense ratio by 10% in December 2025 to 0.18% after converting from a Unit Investment Trust to an open-ended fund structure. With $400+ billion in AUM and 53.8 million shares traded daily, it offers unmatched liquidity. QQQM charges only 0.15%, making it ideal for buy-and-hold investors, though it has a lower trading volume of around 4.1 million shares daily.
The Indian ETF requires a demat account with an Indian broker such as Zerodha, Groww, or HDFC Securities. It trades on the NSE during Indian market hours. The NAV timing mismatch creates a 0.5-2% premium or discount relative to the NASDAQ 100's actual value, as NAV is calculated at 11:30 PM IST based on the US close, while trading occurs between 9:15 AM and 3:30 PM IST.
Fund of Funds provides the simplest entry point.
A fund invests in other mutual funds or ETFs rather than directly holding stocks. Indian FoFs targeting NASDAQ typically invest in US-listed ETFs such as QQQ or the iShares NASDAQ 100 UCITS ETF. This creates a double layer of expenses, where you pay both the Indian FoF's expense ratio and the underlying fund's expense ratio.
The primary advantage of FoFs is simplicity. You invest in rupees without any LRS paperwork. There is no TCS implication below the ₹10 lakh threshold. No foreign asset reporting is required on your tax return. The minimum investment is as low as ₹100, making it accessible to beginners starting their investment journey.
FoFs automatically handle currency conversion and rebalancing. They provide NAV-based pricing without the premium or discount issues that ETFs face. SIP functionality works seamlessly, allowing systematic monthly investments without manual intervention. For investors with less than ₹5 lakh and a holding period of less than two years, FoFs often prove more cost-effective than direct routes.
Complete cost comparison across all investment routes
For a ₹1 lakh investment held for one year, costs vary significantly. Direct US investment via QQQM through Vested costs approximately ₹1,650-2,500, including 0.15% ETF expense, 0.25% brokerage each way, 1% forex spread, and ₹500 wire transfer. Indian ETF route costs ₹780-85,000, including a 0.58% expense ratio and a 0.2% STT round trip. Indian FoF direct plan costs approximately ₹ 80, with a total expense ratio of 0.80%.
For ₹10 lakh investment held for five years the dynamics change. Direct US investment via QQQM incurs cumulative costs of ₹18,000- ₹ 25,000, with one-time forex and transfer costs amortised over the period. Indian ETF costs approximately ₹34,000 over five years. Indian FoF costs around ₹42,000 for the same period.
The break-even analysis reveals that for investments under ₹5 lakh held for less than two years, an Indian ETF or FoF is more cost-effective. For holdings above ₹10 lakh with a holding period of three years or more, direct US investment yields 0.3-0.5% annually after amortising one-time costs.
Tax treatment differs by investment route.
For direct US holdings, dividends are subject to a 25% withholding at source by US brokers when a W-8BEN is filed. Without W-8BEN, the rate jumps to 30%. This withheld amount can be claimed as Foreign Tax Credit under the India-US DTAA by filing Form 67 before your ITR. The remaining dividend amount is added to income at the applicable slab rates, with a credit for US tax paid.
Indian mutual funds and ETFs automatically reinvest dividends into NAV. This defers taxation until redemption, creating a meaningful advantage for accumulation-phase investors who do not need regular income.
Capital gains taxation follows similar rules across routes. Long-term capital gains on holdings held for more than 24 months are taxed at 12.5% without indexation. Short-term capital gains are taxed at your income slab rate. The Budget 2024 simplified taxation by reducing the LTCG rate from 20% to 12.5% and removing indexation benefits for international funds.
US estate tax creates a significant risk for larger portfolios held directly. Non-US persons holding US-situs assets face estate tax exposure above just $60,000. Tax rates range from 18% to 40% on amounts exceeding $1 million, and there is no India-US estate tax treaty to provide relief. Mitigation strategies include keeping direct US holdings below $60,000 or using Ireland-domiciled UCITS ETFs, which are not subject to US estate tax.
Direct US investment triggers mandatory Schedule FA disclosure in ITR-2 or ITR-3 covering the calendar year. You must report account numbers, institution names, initial peak and closing values, and income earned. Penalties under the Black Money Act reach ₹10 lakh per year for non-disclosure.
Choosing the best option based on the investor profile
Small investors with less than ₹50,000 should choose the Navi or Kotak NASDAQ 100 FoF direct plan. The ₹100 minimum SIP, zero exit load, and rupee-based investing eliminate complexity. No LRS paperwork, no TCS, no foreign asset reporting, and simple taxation through Indian mutual fund rules make this the cleanest option.
Medium investors with ₹50,000-₹5 lakh should consider Motilal Oswal NASDAQ 100 FoF for SIP investing. For lump-sum investors comfortable with demat accounts,, the N100 ETF offersa a marginally lower total expense ratio at 0.58% versus 0.80%, but it requires monitoring NAV premiums and discounts.
Large investors with holdings above ₹5 lakh, especially ₹10 lakh and above, should consider direct US investment via Vested or Interactive Brokers. The 0.4-0.5% annual expense savings versus Indian alternatives compound meaningfully over time. Choose QQQM over QQQ for 0.03% expense savings. Factor the 20% TCS above ₹10 lakh into cash flow planning since it is refundable but ties up capital.
If your US portfolio might exceed $60,000, the estate tax risk may outweigh cost savings. Consider Ireland-domiciled UCITS ETFs available through Interactive Brokers, or maintain larger allocations in Indian funds.
SIP investors should prefer Indian FoF since SIP functionality is not available on US platforms in the traditional sense. You would need to transfer via LRS and purchase each month manually. FoFs offer true automated SIP with minimal friction and rupee-cost-averaging benefits.
The fundamental trade-off remains clear for Indian investors seeking NASDAQ exposure. You can choose between simplicity and regulatory ease with Indian vehicles, or lower long-term costs and direct market access through the LRS route. With a proper understanding of tax implications, estate planning, and compliance requirements, either path can deliver efficient exposure to global technology leadership that drives NASDAQ 100 returns.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
