Investing in FOF is relatively easier and does not require a demat account, says Dhirendra Kumar
Should I invest in Motilal Oswal Nasdaq 100 ETF or Motilal Oswal Nasdaq 100 FOF
If you want simplicity, go for fund of fund (FOF). If you are a stock investor and your stockbroker offers an ETF, you can go for the ETF as well. However, you need to be careful about the fact that an ETF does not sell at its NAV. The ETF can be trading at a small premium or discount to the NAV.
Nasdaq 100 ETF has a very bad track record of this premium-discount trend. The ETF has historically traded at a premium/discount as high as 10 per cent. This is a reason to be worried about. But this shall be the case with Nasdaq 100 FOF as well, as the underlying is the ETF.
Owing to the convenience that FOF offers, if you have to invest a small amount of money or have to invest via an SIP, you can go for the FOF.