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| Is Nasdaq 100 Index a good investment ? |
Before starting to known about Nasdaq 100 Index a good investment. First know about Nasdaq 100 and Nasdaq 100 companies.
Table of Contents :
- What is Nasdaq 100 Index Fund ?
- Nasdaq 100 analysis before Investment :
- Investment in Nasdaq 100 Index.
What is Nasdaq 100 Index Fund ?
The Nasdaq 100 Index is an index that tracks the performance of the top 100 largest, most actively traded U.S companies listed on the Nasdaq Stock Exchange based on market capitalization. Nasdaq 100 index includes many well-known companies such as Apple, Microsoft, Amazon, Facebook, Alphabet (Google), Tesla, Automatic Data Processing Inc., ANSYS Inc., ASML Holding NV ADR, Honeywell International Inc., Marriott International Inc., Old Dominion Freight Line Inc. and others. The Nasdaq 100 index is often used as a benchmark for the technology sector as it includes many leading technology and growth companies.
The Nasdaq 100 index is market-cap weighted which means that larger companies have a greater influence on the Nasdaq 100 index performance. The index is rebalanced quarterly and its composition can change as companies are added or removed based on changes in their market capitalization and performance.
Investors can gain exposure to the Nasdaq 100 index through exchange-traded funds (ETFs) or index funds which allow them to invest in a diversified portfolio of companies represented by the index.
Nasdaq 100 analysis before Investment :
- Current Value of Nasdaq 100 : Rs. 12740.00
- 52 Week Range : Rs. 10440.00 to Rs. 15265.00
- Composition : Top 100 US Companies.
The Nasdaq 100 Index is heavily weighted towards technology and growth-oriented companies and it has outperformed other major stock market indices such as the S&P 500 and the Dow Jones Industrial Average in recent years. However, the index is also more volatile and subject to fluctuations based on changes in the technology sector and individual company performance.
In 2020, the Nasdaq 100 experienced a significant increase in value due to the COVID-19 pandemic which accelerated the shift towards digitalization and online services. Many companies within the index such as Amazon and Zoom benefited from increased demand for online shopping and remote work. In recent year 2021-2022 due to Ukraine and Russia war, inflammation in global market Nasdaq 100 not performed well and touches 52 week low Rs. 10440.00. As of March, 2023 the Nasdaq 100 has recovered the market give a good returned from the lower site. On an average Nasdaq 100 index Fund annual return of around 28% over the past 5 years.
However, Nasdaq 100 analysis state that there are potential risks and challenges to consider when investing in the Nasdaq 100. The index is heavily influenced by the performance of a few large companies such as Apple, Microsoft, Amazon etc. which can create concentration risk for investors. Additionally, the technology sector is subject to regulatory scrutiny and increasing competition which could impact the future performance of the index.
Overall, while the Nasdaq 100 has performed well historically, it's important for investors to consider their individual circumstances, goals, and risk tolerance before making any investment decisions. It's always a good idea to consult with a financial advisor before investing in any specific stocks or indices.
Investment in Nasdaq 100 Index.
Historically, the Nasdaq 100 companies has performed well with an average annual return of around 20% over the past 10 years. However, past performance does not guarantee future returns and there is always a risk of loss with any investment.
Investing in the Nasdaq 100 companies can provide exposure to leading technology and growth companies, which may be attractive to investors seeking long-term growth opportunities. However, it's important to note that the Nasdaq 100 index is heavily weighted towards the technology sector which can make it more volatile and subject to fluctuations based on changes in the industry or individual company performance.
If you are belongs from Indian country than there are several Mutual Fund companies which provides you the opportunity to invest in Nasdaq 100 companies under US companies out side the India. Some of the well known Mutual Fund listed below :-
- ICICI Prudential Nasdaq 100 index fund.
- Navi Nasdaq 100 index fund.
- Motilal Oswal Nasdaq 100 Fund of Fund.
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