Motilal Oswal S&P 500 Index Fund - 2022 Update

It's been 2 years since I invested in this, not as a SIP, but as a lumpsum amount. You can read last year's update here. Or go to the original post to see why we invested.

Motilal Oswal S&P 500 Index Fund - Annual Update

Last year (i.e. around 365 days ago) I wrote about how you could invest in the S&P 500 in the US, it was through an NFO mutual fund. And while I don’t like mutual funds, this one has done well. Motilal Oswal S&P 500 Index

The Zencapita NotesThe Zen Master

Motilal Oswal S&P 500 Index Fund - Should You Invest?

If you’re probably wondering why I left this post to the last minute, it’s because to make a decision you only need 2 minutes! Once done, it’s done - then you course correct. Should you invest? If you have the cash, yes. Read on to learn why I feel this

The Zencapita NotesThe Zen Master

Last year when we checked, we had a Return On Investment (ROI) of around 39%, and an IRR of 37%. This year our results are ROI 54%, and an IRR of 23%. So basically, on a time value basis (which is why investors look at IRR, not just ROI) - it's good, but not great as the first year - expected since the markets have started to consolidate, and the bull run is behind us.

I had mentioned in the earlier post, that I won't be adding to it for the simple reason that we were seeing all-time highs. And that we could see a correction, if not a consolidation (sideways movement).

Well, my rule of thumb for booking profits still stands... If it doubles, sell half.

Unfortunately, the Govt of India & RBI has introduced limits to investing in foreign assets, as a part of the LRS.

It is ridiculous to have a fixed limit, rather than a moving percentage. But because of this, no new investments can be made into such funds that allow you to invest in US/International stocks.

I had created an Index SmallCase that included international index investing. Unfortunately, because of the above rule, I can only sell now, and not buy more. (Though I understand if you're into SIPing, they would allow you to continue, not that I have seen this happen).

Now the only avenue left is for you to invest via custodian platforms that invest directly in the US stocks, and that is what I'm doing. I'll be posting a detailed review of a platform that I'm using, and why I think it's the best for US investing.