Take advantage of the current market decline and consider buying a small piece of the 500 largest publicly traded US companies.

Here is an opportunity to participate in the US equity markets from India via the S&P 500 Index Fund from the Motilal Oswal Mutual Fund house. It’s the first of it’s kind US equity index fund in India and the new fund offer closes on 23 April.

In a prior post titled Alphabet or Alibaba…it’s time to consider overseas equity in the portfolio 💰 I had outlined the need for diversifying into US equity markets – the opportunities available for doing so at that time in India were actively managed funds, feeder funds and ETFs; no index funds. This post was published when the equity indices were making new highs.

But now the timing couldn’t be more perfect, the equity markets are on a decline, giving a good entry point and we have an index fund that gives a single window exposure to invest in the best companies in the US. 

The top 10 holdings of the S&P Index are the leading companies who are thriving and with whom you want to grow👇. The S&P 500 Index Fund from Motilal Oswal will mirror the holdings of the S&P Index and hence will have the same companies. It is a passive fund; hence low cost and not manager depended.

“My regular recommendation has been a low-cost S&P 500 index fund.” says Warren Buffet.

The opportunity seems good, but these are uncertain times and people say cash is king. No one knows how long it will be before things get back to being normal or maybe soon there is going to be a new normal. So is it advisable to consider a new investment?

One thing is sure, business create wealth and owning such strong and relevant business will benefit individuals. Instead of betting on few companies, it is advisable to hold a diversified basket of the best businesses, esp in a foreign market. But only after doing your own due diligence.

Till next post, take care !!