Invesco Mutual Fund is set to launch a NASDAQ 100 Fund of Fund (FoF), an open-ended scheme that will be investing in its parent firm’s European-based fund – Invesco EQQQ NASDAQ-100 UCITS Exchange Traded Fund (ETF), which has exposure to the US’s Nasdaq 100 stocks.
Note that the Invesco EQQQ NASDAQ-100 UCITS ETF is a sister fund of US-based Invesco QQQ ETF, which is the world’s largest ETF tracking Nasdaq-100 Index. The US fund was in existence since 1999 with assets under management of $183.01B as of as of 3/17/2022.
The new fund offer for Indian investors – ‘Invesco India – Invesco EQQQ NASDAQ-100 ETF Fund of Fund’ – will be open for subscription during the new fund offer (NFO) period from March 30, 2022, to April 13, 2022. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
Since it is an FoF, in addition to recurring expenses of the scheme, the unitholders shall also bear the applicable expenses of the underlying Fund. The expense ratio of the underlying scheme – Invesco EQQQ NASDAQ-100 UCITS ETF – as of January 31, 2022 was 0.30 per cent.
The underlying ETF fund was incorporated in Ireland and seeks to generate returns that correspond to the price and yield performance of the NASDAQ-100 Notional Index (Net Total Return) in US dollar terms.
The minimum application to invest in the fund of fund will be ₹1,000 per application and in multiples of ₹1 thereafter, in case of lumpsum purchase. In case of SIPs (systematic investment plans), the minimum purchase amount is ₹500 per month and in multiples of Re. 1 thereafter (subject to a minimum number of installments of 12).
The fund managers are Neelesh Dhamnaskar and Krishna Cheemalapati (for debt investments).
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