Sayantan Chakraborty
Investing in companies that you use daily is an excellent investment strategy. And Facebook, Amazon, Apple, Netflix, and Google are a part of our daily life. These Tech-Giants have created multiple millionaires since their listings. So in this article, we will show you how you can invest in Facebook, Amazon, Netflix, Google, Apple, and other FANG+ companies from India.
FANG or FANG+ companies are some of the massive tech giants in the world, and many investors want a piece of the pie. But as these companies are traded on the New York Stock Exchange, and previously, only American investors had a chance to invest in such companies.
But not anymore!
Now, Indian retail investors have a chance too. Indian retail investors can start investing in companies like Facebook (META), Amazon, Netflix, Google, Apple, Tesla, Nvidia, and other American companies for as low as Rs. 100/-.
What is FANG?
The term FANG was coined by the famous Television presenter on CNBC, Jim Cramer.
Earlier, FANG stocks meant stocks of companies like Facebook (META), Amazon, Netflix, and Google. Later in 2017, Apple was included in the list, and the acronym became FAANG.
New York Stock Exchange, or NYSE, has an Index dedicated to such companies called NYSE FANG+ Index.
The NYSE FANG+ Index contains a few more tech stocks other than the “Famous Five” named above.
How Many Companies are There in The NYSE FANG+ Index?
NYSE FANG+ Index contains stocks of 10 tech companies.
List of Companies present in the NYSE FANG+ Index
- Facebook (META)
- Apple (AAPL)
- Amazon (AMZN)
- Netflix (NFLX)
- Google (GOOGL)
- Alibaba (BABA)
- Baidu (BIDU)
- Nvidia (NVDA)
- Tesla (TSLA)
- Twitter (TWTR)
How to Invest in Facebook, Amazon, Netflix, Tesla, Nvidia, and Google from India?
Earlier, it was very complicated for Indian investors to invest in stocks listed on any US stock exchange. But now, investing in US stocks is as easy as investing in the Indian stock market.
Let us introduce you to –
Mirae Asset NYSE FANG+ ETF (MAFANG) is an Exchange Traded Fund that tracks and invests in the NYSE FANG+ Index.
It is a passively managed ETF which follows the NYSE FANG+ Index. It means the ETF will invest only in the stocks available in the NYSE FANG+ Index.
In a passively managed mutual fund or ETF, no active fund manager decides which stock to buy or sell.
Passively managed mutual funds or ETFs tend to have a lower-Expense Ratio than Actively managed funds.
If you don’t know about the Expense Ratio of a mutual fund or an ETF, you can refer to this article, where we have discussed in detail about Expense Ratio of a Mutual Fund.
As the NYSE FANG+ Index gives equal weightage to all stocks present in the index, Mirae Asset NYSE FANG+ ETF will also invest your money equally among all the stocks in the index.
Complicated?
Let us understand with an example –
If you invest Rs. 100/- in the MAFANG ETF, your Rs. 100/- will be divided equally among all the 10 stocks present in the ETF.
That means each stock will get Rs. 10/-.
How Much Money Should You Invest in International Stocks?
Investing a portion of your portfolio in the International market is an excellent practice, as it brings the Geo-Diversity into the mix, thus reducing the overall risk of your portfolio.
But as the Mirae Asset NYSE FANG+ ETF is a sector-specific ETF (instead, we should say it is a companies-specific ETF), we recommend you not invest more than 5% of your overall portfolio value.
Let us use some examples to help you understand.
If you have a total portfolio balance of Rs. 50 Lakhs, then you should not invest more than Rs. 2.5 Lakhs in the Mirae Asset NYSE FANG+ ETF.
If you have a total portfolio balance of Rs. 35 Lakhs, you should not invest more than Rs. 1.75 Lakh in the MAFANG ETF.
As mentioned earlier, your Total Capital Allocation in the MAFANG ETF should not cross 5% of your Total Portfolio Value.
How To Invest in Mirae Asset NYSE FANG+ ETF?
Investing in the Mirae Asset NYSE FANG+ ETF is as easy as buying any other Indian stock from the stock market.
As discussed earlier, ETFs are a kind of mutual fund whose units are traded like regular stocks on the stock exchange.
You just need a Demat account with any Indian stockbroker to invest in the MAFANG ETF.
If you have a Demat account with major Indian stockbrokers such as UPSTOX, Zerodha, Groww, etc., you can easily invest in the Mirae Asset NYSE FANG+ ETF.
Here, we will be using Groww to show you –
How to Invest in the MAFANG ETF Through Groww
Investing in the Mirae Asset NYSE FANG+ ETF using Groww.
1. Log in to Groww using your account credentials
Once you have created your Groww account, open “https://groww.in” and click on the “Login/Register” button in the top right-hand corner.
2. Use Your Google Account To Login To Groww
If you have used a Gmail account to register with Groww, click on the “Continue with Google” button and select your Google account that is associated with Groww.
Or,
If you have used any other email, please enter the email address in the space below and click on the “Continue” button.
3. Enter Your 4-Digit Groww Pin
Now Groww will ask you to enter the 4-digit pin associated with your Groww account.
Just a reminder – Never share your 4-digit Groww account pin with anyone. Sharing your 4-digit Groww account pin might compromise your account.
Once you enter the correct pin, Groww will automatically redirect you to your Groww dashboard.
4. Search and Select the MAFANG ETF in Groww
Click on the search bar at the top of your Groww dashboard and type “MAFANG” in the search bar.
Mirae Asset NYSE FANG+ ETF, whose units are traded in the National Stock Exchange, should come up in the list below.
Now click on the “Mirae Asset NYSE FANG+ ETF” in the drop-down list.
5. Check All The Details Of The ETF
Once you click on the “Mirae Asset NYSE FANG+ ETF” from the search drop-down menu, a separate page of the ETF with all its details and chart will open up.
On this page, you will find all the details of the MAFANG ETF starting from –
The historical performance of the ETF.
The return generated by the ETF over a specific period.
The fundamentals of the ETF, the fund manager, and the fund house.
Verify the details and make sure that you are satisfied with the ETF.
6. Click on The BUY Button To Invest in The MAFANG ETF
Now it is time to invest in the Mirae Asset NYSE FANG+ ETF.
For this example, we would be buying 100 units of the MAFANG ETF.
On the main page of the ETF, on the right-hand side, you will find the order placement section.
If you want to buy securities, click on BUY. And to sell securities, click on SELL.
In our case, we will be selecting BUY.
Next, you need to decide whether you want to hold the securities for a long time, that is Delivery. Or, if you want to buy and sell the securities within a day, that is Intraday.
In our case, we will be selecting Delivery as we want to hold the MAFANG ETF units for the long term.
Next comes the quantity of shares/units of the security.
Here we will write the number of shares/units we want to buy.
In our case, we will write 100 as we want to buy 100 units of the ETF.
You can enter whatever amount you are comfortable buying.
Next, you need to select whether you want to buy at the current market price of the particular security, that is Market Order. Or, if you want to buy the securities at a price of your choice, that is Limit Order.
We would recommend you use Limit Order so that you don’t buy the shares/units at an over-inflated price.
7. Review Your MAFANG ETF Buy Order
Once you have filled each section of the order form, review your order once before placing it.
After reviewing, once you are satisfied with your order, click on the BUY button and place your order.
Just a reminder – Before finalizing and placing your order, do check that your Groww account has enough balance to complete your buy order.
8. Check Your Order In The Orders section
Once you have placed your order, you can see your order in the Order section.
The order status will remain “Open” and a Yellow marker will be visible beside your order until it gets executed on the exchange.
Once executed, the order status will change to “Executed” and a Green marker will be visible beside your order, as shown in the above picture.
The ETF units will be in your Positions section till the settlement date.
It will take T+2 Days or Trading Day + 2 Days for the ETF units to reach your Demat Account.
After T+2 Days, your ETF units will be visible in the “Your Investments” dashboard.
The “Your Investments” dashboard is present on the right-hand side of your main Groww dashboard. But if you cannot find it, follow this link – https://groww.in/stocks/user/investments
And that was it –
If you have followed every word of the above instruction, then you have just invested in some premium tech companies in the world via the Mirae Asset NYSE FANG+ ETF.
While we have been discussing all the big tech companies in the world, one might wonder why the name MICROSOFT didn’t come up.
And,
Why There Is No Microsoft in FANG?
Due to two main reasons, Microsoft is not present in the FANG or FAANG group.
Reason 1
The acronym doesn’t sound good.
Believe it or not, Microsoft was excluded from the FANG group because it made the cool FANG acronym into FANMG.
Now try to pronounce that acronym.
FANMG or FAANMG.
Doesn’t sound cool as FANG.
Reason 2
All the counters in the FANG / FAANG group had 3x to 10x-ed their investor’s money when the acronym FANG was coined, while Microsoft was a clear laggard.
Also, Steve Ballmer, the then-CEO of Microsoft, was one of the most hated CEO of the tech industry.
The Pre-Satya Nadella era of Microsoft was not as shiny as it is now.
After the Indian-born Satya Nadella became the CEO of Microsoft, the company’s stock price grew by more than Eight times.
This means Rs. 50,000/- invested in Microsoft in 2014 has now become more than Rs. 4 Lakhs.
How to Invest in Microsoft Shares from India?
Even though Microsoft is not present in the NYSE FANG+ Index or ETFs that follow the index (such as the MAFANG ETF), you can still invest in companies like Microsoft from India.
Groww is one of the few brokers in India that allows you to invest in US Stocks.
If you have an account with Groww, you can buy Stocks, REITs, and ETFs traded in the US Stock Market.
Groww even allows fractional ownership of US Stocks.
Fractional ownership means you can own a small piece of a particular stock.
For example –
If the price of a particular stock is $100, then you can buy a small portion of that stock, let us say $10.
In the US Stock Market, you can be a company’s shareholder without even owning a whole share of that company.
But you also get the corresponding dividend amount, rights, and other benefits a shareholder receives.
Investing in Microsoft shares and the MAFANG ETF using Groww will help you organize your US Stocks Portfolio.
So both of your investments, namely the units of the MAFANG ETF and the shares of Microsoft, remain in the same place.
How To Buy Microsoft Shares in Groww?
Buying shares of Microsoft, or any US-traded stocks for that matter, is easy if you have a Groww account.
First, log in to your Groww account.
Activate your Groww US Account.
Do check that you have enough funds in your US Stocks account.
Search for your desired US Stock in the search bar.
Invest.
That was it.
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And as usual, in the end, we will say –
Good Luck, and Happy Investing! 😊
Disclaimer: The views, investment tips, presumptions, and calculations expressed on Moneypremier.net are not of the website or its management. This article is for Educational Purposes only. Moneypremier.net advises users to check with certified experts before making any financial decisions.
Ownership Disclosure: People associated with Money Premier (https://moneypremier.net/) don’t have stakes in the Stocks, ETFs, and Mutual Funds discussed in the above article. But, they might or might not take positions in the above-discussed Stocks, ETFs, and Mutual Funds in the future.
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