Invesco Mutual Fund is set to launch a NASDAQ 100 Fund of Funds (FoF), an open-ended scheme that will invest in its parent firm’s European-based fund – the Invesco EQQQ NASDAQ-100 UCITS Exchange Traded Fund (ETF), whose Exposure is the Nasdaq 100 stock of the US.
note that invesco The EQQQ NASDAQ-100 UCITS ETF is an affiliate fund of the US-based Invesco QQQ ETF, the world’s largest ETF tracking the Nasdaq-100 index. The US Fund was in existence since 1999 and as of 3/17/2022 had assets under management of $183.01B.
The new fund offer for Indian investors – ‘Invesco India – Invesco EQQQ NASDAQ-100 ETF Fund of Funds’ – will be open for subscription during the New Fund Offer (NFO) period from March 30, 2022 to April 13, 2022. The plan reopens for continuous sale and repurchase within five business days from the date of allotment.
Since it is a FoF, in addition to the recurring expenses of the scheme, the unitholder will also bear the applicable expenses of the underlying fund. The expense ratio of the underlying plan — the Invesco EQQQ NASDAQ-100 UCITS ETF — was 0.30 percent as of January 31, 2022.
The underlying ETF fund was incorporated in Ireland and seeks to generate returns consistent with the price and yield performance of the NASDAQ-100 Notional Index (Net Total Return) in US dollar terms.
The minimum application for investing in Fund of Funds will be 1,000 per application and in multiples of 1 thereafter, in case of outright purchase. In case of SIP (Systematic Investment Plan), the minimum purchase amount is 500 per month and in multiples of Rs. 1 thereafter (subject to minimum number of installments of 12).
The fund managers are Nilesh Dhamanaskar and Krishna Cheemalapati (for debt investment).
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