INCOME TAX23 Sept 2026
US ETF frenzy: Why Indians are paying ₹150 for ₹100 of assets, and what to do instead | Mint
Some India-listed international exchange-traded funds (ETFs), mainly US-focused ones, traded far above the value of their holdings this week, then fell sharply. The cause is a supply-demand mismatch in India, not costlier US stocks. This hurts investors who only watch market price or past returns. So check an ETF's net asset value (NAV) before buying, or consider other overseas options.
Key Statutory Highlights
- The Motilal Oswal Nasdaq Q-50 ETF traded at up to 4 times its net asset value before hitting back-to-back lower circuits.
- Indian mutual funds face an industry-wide overseas investment limit of $7 billion, including a separate $1 billion limit for overseas ETFs.
- Vested's Viram Shah said investors at a big premium are effectively paying ₹150 for assets worth just ₹100.
Actionable Advice for Taxpayers / Founders:Before buying any international ETF, compare its traded price with its net asset value (NAV) or indicative NAV, and also weigh expense ratios, liquidity, tracking differences, remittance costs and taxation.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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