Which Nasdaq 100 FoF to choose?

[promagstyle]

I was planning to invest in Motilal Oswal Nasdaq 100 FoF. Expense ratio is 0.64. However, i came to notice that it's underlying fund Motilal Oswal Nasdaq 100 ETF is not able to correctly follow its benchmark Nasdaq index. Also, there have been instances of NAV/price mismatch of ETF.

Recently, Kotak MF also came up with Nasdaq 100 FOF with underlying ETFs iShares NASDAQ 100 ETF. Considering Blackrock's ishares ETF reputation and trading volume, i believe there will be very less mismatch between NAV/price. But expense ratio of Kotak's FOF comes out to be on higher side(0.65+expenses of underlying ETFs).

Moreover, Nippon mutual fund is also coming up with Nasdaq 100 FoF.

Should i :

1. Go with less expensive but frequently inaccurate Motial Nasdaq 100 FoF or

2. Go with more expensive but more accurate(as per my assumption) Kotak Nasdaq 100 FoF.

3. Wait for details(expenses and underlying ETF) about Nippon Nasdaq 100 FoF.

 

[pushkin]

@promagstyle I would say go with Motilal Oswal.

 

[resjudicata]

@pushkin Doesn't it have a very high tracking error? (The underlying ETF)

 

[pushkin]

@resjudicata That's fine, it won't matter in the long run.

 

[resjudicata]

@pushkin Looking at Google gives a very different picture - I really don't know the reason why. But Pratik Oswal mentions on his twitter account as Tracking error being 0.3. How can one see that?

Clarification

 

[pushkin]

@resjudicata Did you consider USD/INR rate?

 

[resjudicata]

@pushkin That's the thing. I am not aware how to do that and where to find it. I tried over Google and AMC website for some sort of performance sheet showing the fund performance against the N100 in USD and INR terms. Unfortunately, couldn't find any.

Have tweeted to Mr. Prateek Oswal and waiting for a response.

Edit - I looked over again and found the SID and it says tracking error is 0.13% annualized (Not sure about the date of declaration). Still it seems a pretty good bet.
I wonder why there is such a difference on Google when searching them. Maybe due to some USD-INR that I am not understanding

 

[pushkin]

@resjudicata You have to multiply the change in N100 fund price with the change in USD/INR, and that should give you the change in Nasdaq 100 index. INR has been falling against USD in the long run; hence N100 fund will have better return than Nasdaq 100 index.

 

[kingofkings89]

@promagstyle I have the same question, but was also wondering about investing in QQQ directly via Vested.

 

[lemoss]

@kingofkings89 I don't think Vested has any brokerage charges. However there is a ₹1000 + gst charge for wire transfer through ICICI which should be similar for other banks as well. Withdrawal from Vested has a flat $11 fee. I think there is some complexity w.r.t to taxation as well.

Unless you're investing very large amounts I don't think it is worth it.

 

[jcroce12]

@lemoss Even groww now allows investments in equity markets. Charges are same as vested. But as someone rightly pointed out. It's not worth it if you are investing small amounts.