Nasdaq-100 (NDX) index is in touching distance of 15000 and the talk is already on for the tech-heavy index to move to 20000 by the year-end. As on 14 July, the NDX was at a level of around 14,900.44, 0.17 per cent above its previous close. Back in June 2020, the Nasdaq 100 had crossed 10000 for the first time and since then, it’s almost a 50 per cent ( absolute return) upmove for the index if it touches 15000 in near term. For the Nasdaq-100 to touch 20000 by December 2021, the index has to rise by almost 33 per cent on an absolute basis, from the current levels.
In early March and in May 2021, the divergence between the two leading indices – Nasdaq 100 and S&P 500 were quite visible, however, as of now the former has caught up comfortably with the latter.
Some of the top-performing US stocks such as Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOG) collectively known as FAANG stocks are a part of the Nasdaq 100 index.
Nasdaq 100 has gained nearly 48 per cent over the last 12-months and close to an absolue or total return of about 200 per cent and 550 per cent over 5 years and 10-years respectively.
Over the last 1-year, the tech giants like NVIDIA, Microsoft and the other top US stocks have been on the forefront of this bull run. Apple (AAPL), NVIDIA, Adobe, PayPal Holdings, Amazon (AMZN), Tesla are already up by more than 10 per cent in the last 1-month.
The potential of these tech companies to grow in terms of revenue and market share is huge. The markets and the stock prices never move in a straight line and any dips in the prices of these stocks may be used as a long opportunity to invest in them.
The Nasdaq 100 index since its inception in 1985 is a large-cap growth index and includes 100 of the top domestic and international non-financial companies based on market capitalization. The Index reflects companies across major industry groups, including computer hardware and software, telecommunications, retail trade and biotechnology. Noticeably, what it does not include are the stocks of banks and financial companies, including investment companies.
If you haven’t yet boarded the Nasdaq 100 index, not all is lost. Sitting in India, you can invest in your favourite companies like Amazon, Facebook, Microsoft and more. There are foreign brokerages to help you open an international trading account after completing all your KYC and other foreign exchange formalities so as to adhere to RBI guidelines.
To open a US stock market account, which will include a US brokerage account, you can complete the account opening process entirely online by uploading scanned copies of ID and address proof. After the account gets opened, you can remit the funds through net banking of most large Indian banks. Investing in top US stocks from India has never been easier than this.
If you are looking to own all the stocks of Nasdaq 100, buying the ETF linked to the index is the option.The Invesco QQQ is an exchange-traded fund that gives you access to Nasdaq 100 companies in a single investment.
With levels of around 20000 on Nasdaq 100 expected by year-end, you certainly don’t want to miss the bus, this time. As an Indian investor, it’s better to diversify globally and bring the international flavour to your Indian portfolio with the best US stocks of 2021.