Investing in companies that you use daily is a very good investment strategy. And Facebook, Amazon, Apple, Netflix, Google are definitely a part of our daily life. These Tech-Giants has created multiple millionaires since their listings. So in this article, we are going to 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 giants in the tech world, and a lot of investors want a piece of the pie. But as these companies are traded in the New York Stock Exchange, mostly American investors had a chance to invest in such companies.
But not anymore!
Now, Indian retail investors too, have a chance. Indian retail investors can start investing in these Tech-Giants with as low as Rs. 100/-.
- What is FANG?
- Easy Way to Invest in Facebook, Amazon, Netflix, Google from India
- How Much Money Should You Invest in International Stocks?
- How To Invest in Mirae Asset NYSE FANG+ ETF?
- Why there is no Microsoft in FANG?
What is FANG?
The term FANG was coined by the famous Television presenter of CNBC, Jim Cramer. Earlier, FANG stocks meant stocks of Facebook, 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 do NYSE FANG+ Index Contain?
NYSE FANG+ Index contains stocks of 10 Tech Companies.
List of Companies in NYSE FANG+ Index
- Facebook (FB)
- Apple (AAPL)
- Amazon (AMZN)
- Netflix (NFLX)
- Google (GOOGL)
- Alibaba (BABA)
- Baidu (BIDU)
- Nvidia (NVDA)
- Tesla (TSLA)
- Twitter (TWTR)
Easy Way to Invest in Facebook, Amazon, Netflix, Google from India
Earlier it was very difficult for Indians to invest in stocks listed on any US stock exchange. But now investing in the FANG+ companies mentioned above is as easy as buying a stock of any other Indian company.
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, meaning the ETF will invest in all the stocks present in the NYSE FANG+ Index. There is no active fund manager selecting stocks to buy or sell.
Passively Managed Funds tend to have a lower-Expense Ratio compared to Actively Managed Funds.
If you don’t know what the Expense Ratio is, you can refer to this article where we have discussed in detail what the Expense Ratio of Mutual Fund is.
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 present in the Index.
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 a very good 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 (rather we should say, a handful of companies-specific ETF), we at Money Premier recommend not to invest more than 5% to 10% of your overall portfolio balance.
Let us use some examples to help you understand.
If you have a stock portfolio of Rs. 50 Lakhs, then you should not invest more than Rs. 2.5 Lakhs to Rs. 5 Lakhs in the Mirae Asset NYSE FANG+ ETF.
If you have a stock portfolio of Rs. 35 Lakhs, then you should not invest more than Rs. 1.75 Lakh to Rs. 3.5 Lakhs in the MAFANG ETF.
As mentioned before, your Total Capital Allocation in the MAFANG ETF should not cross 5% – 10% 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 which are traded like regular stocks via the stock exchange.
You just need a Demat account with any Indian stockbroker to invest in the MAFANG ETF.
A Pictorial Example of How to Invest in the MAFANG ETF via UPSTOX
Investing in the Mirae Asset NYSE FANG+ ETF using UPSTOX
1. Log in to Upstox using your account credentials
2. Enter your 4-Digits Passcode
Next, you will be asked to enter your 4-Digits Passcode.
Most of the time, it is your birth year.
3. Search for the MAFANG ETF via your Upstox Dashboard
Once you have typed in your 4-Digits Passcode, you will be logged in to the Upstox Dashboard.
Once you are inside the Dashboard, using the “SCRIP SEARCH” function, search for the MAFANG ETF.
4. Search and Select the MAFANG NSE EQ
Once you have clicked on the “SCRIP SEARCH” function, type in “MAFANG” in the search field.
Mirae Asset NYSE FANG+ ETF which is traded in the National Stock Exchange should come up in the list below.
Now, click on the “MAFANG NSE EQ” option.
5. Right Click on the Chart and Click on the Buy Order Option
Once you click on the “MAFANG NSE EQ”, the chart for the ETF will open up.
Right-click anywhere on the chart and two options will pop up.
1. Buy Order
2. Sell Order
Click on the “Buy Order” option and proceed.
6. Edit Your Buy Order
Once you click on the “Buy Order” option, an order edit window should open up on the right side of your screen.
Edit the order according to your need using this window.
1. Quantity – The number of units of the ETF you want to buy.
(Shares of ETFs and Mutual Funds are called “Units”)
2. Product – Select between Intraday and Delivery.
As we want to take ownership of the ETF Units, “selecting “Delivery” is recommended.
3. Complexity – Keep it “Simple”.
4. Order Type – If you want to buy the ETF Units at the price of your choice then select “Limit”.
And if you want to buy the Units at whatever the market price is going at the moment, then select “Market”.
5. Price – If you have selected “Limit” in the Order Type, then enter the price at which you want to buy each Unit.
Disclosed Quantity and Validity is rarely relevant while investing ETFs, so you don’t need to worry about these two.
After you have filled up all the necessary fields correctly, Upstox will prompt you about how much fund is needed to execute the particular order.
You will be able to see the estimation above the “Review Buy Order” button.
7. Review Your MAFANG ETF Buy Order
Once you have confirmed that your Upstox fund balance matches the estimation presented by Upstox, click on the “Review Buy Order” button.
Once you click on the “Review Buy Order” button, you will be presented with your order review window, where you can re-check all the options one last time before placing the order on the live market.
In the above picture, we are placing an order to take Delivery of 50 Units of the Mirae Asset NYSE FANG+ ETF at a price of Rs. 53.50/- Per Unit.
And the order will be valid for a single trading day.
After reviewing your order for the last time, if you are satisfied, then click the “Place Buy Order” button.
Once you click the “Place Buy Order” button, your order will be sent to the exchange and it will get executed once the Limit Price matches the Market Price or LTP.
8. Check the Orders section
Once you have placed your order, you can see the order in the Order section.
The order status will remain “Open” until it gets executed on the exchange.
Once executed, the order status will change to “Completed”, and now the ETF Units is in your Positions section, which is right beside the Orders section.
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 Holdings section.
And that was it –
If you have followed each and 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, but one might think why the name MICROSOFT didn’t come up.
Why there is no Microsoft in FANG?
There are two main reasons why Microsoft is not present in the FANG or FAANG group.
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.
When the acronym FANG was coined, all the counters in the FANG / FAANG group has 3 to 10x-ed their investor’s money while Microsoft was a clear laggard.
Also, Steve Ballmer, the then CEO of Microsoft was one of the most hated CEO in 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 stock price of the company has grown more than 8 times.
This means, Rs. 50,000/- invested in Microsoft in 2014 has now become more than Rs. 4 Lakhs.
How to invest in Microsoft from India?
Though Microsoft is not present in the NYSE FANG+ Index, or the ETFs that follows 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.
It is as simple as opening an account with Groww and you will be able to buy Stocks and ETFs that are traded in the US Stock Market.
Groww even allows fractional ownership.
Fractional ownership means, you can buy a small piece of a particular stock.
For example –
If the price of a particular stock is $100, then you can buy a small piece of that stock, let say $10.
In the US Stock Market, you can be a shareholder of a company even without owning a whole stock of that company.
But you also get the correspondent amount of dividend, rights and benefits given to the shareholders.
And if you want to keep your investments organized, then you can also invest in the Mirae Asset NYSE FANG+ ETF through Groww.
So that both of your investments, namely MAFANG and Microsoft stay at the same place.
That was it.
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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, Mutual Funds, discussed in the above article. But, they might or might not take positions in the above-discussed Stocks, ETFs, Mutual Funds, in the future.