
Mutual funds based on the Nasdaq-100 index remain our top choice for international investing. We currently have three such funds in our 'Best Buy' list - Navi NASDAQ 100 FoF, Aditya Birla Sun Life NASDAQ 100 FOF and Motilal Oswal Nasdaq 100 FOF. Some of you might have developed cold feet due to the steep 25 per cent drop in Nasdaq-100 last year. But volatility is a side-effect that comes along with investing in innovative growth-oriented stocks that make up most of this index. And 2022 was particularly merciless on such stocks. Despite this correction, Nasdaq-100 investors are still sitting at healthy annual returns of 18 per cent in the last five years, as against the 13 per cent delivered by Sensex. Why growth stocks collapsed in 2022 Broadly speaking, the valuation of growth stocks took a hit due to the following reasons: Central banks globally resorted to increasing interest rates in order to control soaring inflation after the pandemic
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