@tay1964 Good find. I ran the Tracking error calculation on IVV and even I arrived at 0.01%. Since this variable will drop considerably in my model, I want to double check the method of calculating TE before editing my post and the calculations. Once I have confirmed that my method is indeed reliable, I will update the post with IVV instead of SWPPX. If you have any links to sites/videos that show TE calculation, please share. Surprisingly, there seems to be very little info on calculating TE, at least I'm finding it difficult to find.
@hamer Why have you not accounted USD appreciation in MO (option 1)? It clearly says in the prospectus that fund will benefit from USD appreciation or INR depreciation
@hamer To simplify calculations, since you are accounting for 1.5% USD appreciation every year, I guess, net yearly appreciation for MO sp500 should be 10+1.5= 11.5%.
@hamer You’ve also got to factor in increased tax compliance costs when you invest directly through a US brokerage account. An Income tax return with foreign income and foreign assets disclosures always attracts greater scrutiny from the taxman.
@hamer If we withdraw from direct US investments then each withdraw attracts a withdrawal fee of atleast $11 usd(vested) or more. Have you taken into account the same?
About bank charges and currency conversion fee, it depends upon bank to bank and a gst of 18% is also charged on the same.
