Risks & Returns of International Portfolio Investment: Evidence from Axis NASDAQ 100 FOF

Investing is a great way to grow wealth and investing globally allows exposure to various leaders of the industries, and through Axis Nasdaq 100 Fund of Fund it is possible to access the growth potential of top-performing companies in NASDAQ 100 index. This FOF invests in Exchange Traded Funds (ETFs) tracking 100 of the largest non-financial companies listed on the Nasdaq. With advancements in technology, investing in this fund gives exposure to global giants across tech, consumer services, and healthcare sectors.

Any domestic or international investment comes with various set of risks. These include geopolitical risks that may affect market stability, around 50% of companies listed on Nasdaq index are from IT sector, making it vulnerable to any regulatory changes in this sector. Moreover, since this fund is associated with Nasdaq index, this makes it affected by market volatility and changes in U.S. economic policies and tracking errors because the fund tracks the index through ETF.

Despite these risks, the Axis Nasdaq 100 FoF has immense growth potential, the index has given 15%-20% average return per annum in the last decade also the fund invests in global leaders such as Apple, Microsoft, and Amazon known for their innovation and growth. As the world moves towards AI and Web 4.0, the IT sector is well positioned to grow and perform, making this fund a good option for long-term investors looking to grow their wealth with global market trends and technology driven sector.

Learnings from our team consisting of Abhishek Mathur, Amisha Singh, Akbarali Noushad, Disha Gupta and Utkarsh Kumar.

A special thanks to daitri tiwary ma'am from Birla Institute of Management Technology (BIMTECH) for guiding and supporting us on this project.