Paytm introduces Mirae Asset's NYSE FANG+ ETF & MF

Hyderabad: India's homegrown digital financial services platform Paytm, on Monday announced that its wholly-owned subsidiary 'Paytm Money' is empowering the country's retail investors with access to top tech stocks from the US in association with Mirae Asset's NYSE FANG+ ETF.

The country is already one of the largest markets for companies like Facebook, Amazon, Netflix, and Google (Alphabet) - FANG, and its importance will only rise over the next decade.

NYSE FANG+ Index is a focused index and includes the original FANG companies + 6 tech leaders in the global Markets - Apple, Alibaba, Baidu, Nvidia, Tesla, and Twitter.

Most of these are household names for millions of Indians, and the NFO is expected to be a success, driven primarily by the impressive 102 per cent return delivered by NYSE FANG+ Index over the last year.

The underlying tech stocks like Tesla delivered 390 per cent return, and Google (Alphabet) delivered 80 per cent return during this period.

Along with the NYSE FANG+ ETF, Mirae Asset is also launching a mutual fund scheme (NYSE FANG+ ETF Fund of Fund) which will predominantly invest in NYSE FANG+ ETF.

From an investor's perspective, there are certain things to be considered before deciding on the right instrument.

NYSE FANG+ ETF is the lowest cost alternative, followed by a direct mutual fund. ETF also offers the most amount of flexibility vs other alternatives, and for the majority of investors, NYSE FANG+ ETF should be the preferred route. For a small proportion of users who intend to invest a small sum and are unable to open a Demat account, the Direct MF route might be suitable.

Regular MF turns out to be the most expensive because of the distributor commissions involved.