You can invest in the Nasdaq-100 from India in three ways: an Indian Nasdaq-100 fund in rupees, a US-listed ETF like QQQ, or an Ireland-domiciled UCITS ETF like CNDX. Most Indian funds have limited or paused new investments, so for most investors the real choice is between QQQ and a UCITS ETF, and the UCITS route avoids US estate tax for a slightly higher fee.
The Nasdaq-100 tracks the 100 largest non-financial companies listed on the Nasdaq exchange, including Apple, Microsoft, Nvidia, Amazon and Alphabet. It leans much more heavily towards technology than the S&P 500. Every route gives you the same index. What changes is whether you can invest today, what you pay each year, how you are taxed and what happens to your investment when you die.
This guide compares the three routes side by side, explains who each one suits, and shows how to get started.
Table of contents
- The three routes at a glance
- Route 1: Indian Nasdaq-100 funds
- Route 2: US-listed ETFs like QQQ
- Route 3: Irish UCITS ETFs like CNDX
- What about GIFT City?
- How to start on Paasa
The three routes at a glance
| Indian Nasdaq-100 funds | US-listed ETF (QQQ) | Irish UCITS ETF (CNDX, EQQQ) | |
|---|---|---|---|
| How you invest | In rupees, through an Indian mutual fund app or broker | In dollars, through a global broker, under LRS | In dollars, pounds or euros, through a global broker, under LRS |
| Can you invest today? | Limited. Several funds have paused or capped new investments | Yes | Yes |
| Yearly cost (TER) | About 0.6% to 0.8%, depending on the fund | 0.18% | 0.30% |
| Dividends | Reinvested inside the fund | Paid to you, with 25% US tax withheld | Reinvested inside the fund, with 15% US tax withheld at fund level |
| Tax on gains in India | 12.5% after the holding period, slab rate before | 12.5% after more than 24 months, slab rate before | 12.5% after more than 24 months, slab rate before |
| US estate tax | No | Yes, above $60,000 of US assets | No |
| TCS on remittance | No | 20% above ₹10 lakh a financial year, adjustable against your tax | 20% above ₹10 lakh a financial year, adjustable against your tax |
Unlike the S&P 500, the cheapest Nasdaq-100 fund here is the US-listed one. QQQ charges less each year than the UCITS ETFs. The UCITS route costs a little more, but it avoids US estate tax and pays less tax on dividends.
Route 1: Indian Nasdaq-100 funds
Several Indian mutual funds track the Nasdaq-100, either by buying the stocks directly or through a fund of funds that holds an overseas Nasdaq-100 ETF. There is also an ETF listed on the NSE, the Motilal Oswal NASDAQ 100 ETF (MON100), which you can buy through any Indian broker. You invest in rupees, with no LRS paperwork and no TCS.
The catch is access. SEBI caps how much Indian mutual funds can invest abroad, and Nasdaq-100 funds have been among the first to hit it. For example, the Motilal Oswal Nasdaq 100 Fund of Fund discontinued new SIP registrations from 10 December 2024, and the Navi Nasdaq 100 Fund of Fund suspended all new investments from 28 March 2024. Check a fund's current status before planning around it.
They also cost more. A fund of funds charges its own fee on top of the fee of the ETF it holds. For the Motilal Oswal fund of funds, that is 0.22% plus 0.58% for the direct plan.
Tax: gains on fund of funds units are long-term after more than 24 months. Gains on the NSE-listed ETF are long-term after more than 12 months, because it is listed in India. See the Income Tax Department's guide to holding periods.
Suits you if you want to stay in rupees and can find a fund that is accepting money.
For detailed comparisons, see Motilal Oswal Nasdaq 100 FoF vs UCITS ETF and Navi Nasdaq 100 FoF vs UCITS ETF.
Route 2: US-listed ETFs like QQQ
You can buy QQQ, the best-known Nasdaq-100 ETF, from India. You send money abroad under the Liberalised Remittance Scheme, which allows up to $250,000 per financial year, and buy the ETF through a global broker.
QQQ charges 0.18% a year, less than the UCITS versions. The drawbacks are tax:
- US estate tax. QQQ is a US-domiciled fund, so it counts as a US asset. If your US assets are worth more than $60,000 when you die, your heirs may owe US estate tax at rates of up to 40%. See How the US Estate Tax Works for Indians.
- Higher dividend tax. The US withholds 25% of the dividends QQQ pays you. You can claim this as a credit against your Indian tax, but the dividend is also taxed in India at your slab rate each year. Nasdaq-100 companies pay relatively small dividends, so this matters less here than it does for the S&P 500.
Suits you if you are investing small amounts that will stay well under $60,000 of US assets.
For the UCITS funds that track the same index, see Top UCITS Alternatives to QQQ.
Route 3: Irish UCITS ETFs like CNDX
UCITS ETFs are European-regulated funds, and most are domiciled in Ireland. The ones tracking the Nasdaq-100 hold the same stocks as QQQ, but because the fund itself is Irish, it is not a US asset.
The two largest accumulating Nasdaq-100 UCITS ETFs are:
| Fund | ISIN | Ticker | TER |
|---|---|---|---|
| iShares NASDAQ 100 UCITS ETF (Acc) | IE00B53SZB19 | CNDX (LSE, USD) | 0.30% |
| Invesco EQQQ NASDAQ-100 UCITS ETF Acc | IE00BFZXGZ54 | EQAC (SIX, USD) | 0.30% |
Both funds also trade in other currencies under other tickers. The well-known EQQQ ticker belongs to the distributing share class of the Invesco fund, which pays dividends out instead of reinvesting them, so search by ISIN to be sure which one you are buying.
You invest through LRS, as with QQQ. The differences are:
- No US estate tax. Irish funds are not US assets, however much you hold.
- Lower dividend tax. The fund pays 15% US tax on the dividends it receives, under the US-Ireland tax treaty, and reinvests the rest. You have no dividend income to report each year.
The trade-off is cost: 0.30% a year against 0.18% for QQQ.
Suits you if you are investing for the long term, or your US assets are already above, or likely to cross, $60,000.
If you are deciding between the Nasdaq-100 and the S&P 500, see QQQ vs CSPX.
What about GIFT City?
You can also buy receipts linked to some US stocks through GIFT City in Gujarat. It still runs through LRS, the product range is narrower, and receipts linked to US stocks still carry US estate tax exposure, because the wrapper does not change what you finally own.
How to start on Paasa
Paasa gives you access to both LRS routes, QQQ and the UCITS ETFs, in one account in your own name, with Interactive Brokers as custodian.
- Open your Paasa account and complete KYC online.
- Send money under LRS from your Indian bank account. See LRS for Global Investments.
- Buy the fund. Search by the fund's ISIN to be sure you are buying the right share class. See How to Buy UCITS ETFs from India.
- Report it in your ITR. Foreign holdings go in Schedule FA each year. See the Schedule FA Guide.
About Paasa
Paasa is a global investing platform for Indian residents and NRIs.
- Every Nasdaq-100 route abroad: Buy QQQ, CNDX, the Invesco EQQQ funds and other ETFs on US and European exchanges, in USD, GBP or EUR.
- An account in your own name: Your holdings sit in an account in your name, with Interactive Brokers as custodian.
- Tax reporting support: Get the details you need for your capital gains schedule and Schedule FA when you file your ITR.
