I just wanted to know about the recently launched Mirae Asset NYSE FANG+ ETF FoF and how does it differ from Motilal Oswal Nasdaq 100 FoF? My friend told me that one will not get an advantage of tax exemption of Rs 1 lakh if one invests in Mirae Asset NYSE FANG+ ETF FoF. Can you please explain? I'm confused.
As you know that any ETF is mounted on an index. Motilal Oswal Nasdaq 100 FoF tracks the Nasdaq 100 index and invests in the same company and in the same proportions as the Nasdaq 100 index. Nasdaq is an exchange which is dominated by technology companies and most of the new companies in the US get listed there. Now this NYSE (New York Stock Exchange) FANG+ is a new thing. This index is made up of 10 stocks which get rebalanced every quarter. To name a few stocks it invests in - Facebook, Alphabet, Alibaba, Baidu, etc. The state of taxation of any foreign fund is that it is treated as a capital effect. You have to hold it for three years and all the gains will be taxed at 20% after adjusting for indexation. And any gains before three years will be added to your income.