Home Global Investing Mutual Funds PPFAS Nasdaq 100 FoF
Outbound Passive · FoF Synthetic ETF — Read Note

Parag Parikh IFSC
Nasdaq 100 Fund of Fund

Ticker: PPINDX100 · PPFAS Alternate Asset Managers IFSC · IFSCA/Retail/2025-26/006 · Launched: March 20, 2026

All-in TER
0.50%
p.a. (0.30% fund + 0.20% ETF)
Exit Load
None
No entry or exit load — fully liquid
Since Inception
+13.94%
vs Nasdaq 100 NTR +14.90% (Mar 20 – Apr 30, 2026)
AUM (Apr 2026)
USD 7.44M
NAV: 112.08 (LT post-tax)
Data as of April 30, 2026 — official PPFAS IFSC factsheet

Important: This Fund Uses a Synthetic (Swap-Based) ETF

Unlike the PPFAS S&P 500 FoF (which uses a physical ETF), this fund invests in a synthetic ETF — the Invesco NASDAQ-100 Swap UCITS ETF. A synthetic ETF delivers index returns via a swap agreement with a bank counterparty, not by holding the underlying stocks. This introduces counterparty risk in addition to market risk. UCITS regulations require collateral of 90%+ of NAV, making this a regulated and well-understood structure — but you should understand what you own before investing. See the detailed explanation below.

Fund Overview
Full NameParag Parikh IFSC NASDAQ 100 Fund of Fund
Fund ManagerMr. Akshay Falgunia
AMCPPFAS Alternate Asset Managers IFSC Pvt. Ltd.
IFSCA Reg. No.IFSC/Retail/2025-26/006
StructureOpen-ended passive Fund of Funds (FoF)
Underlying ETFInvesco NASDAQ-100 Swap UCITS ETF Acc — synthetic replication (99.96% of portfolio)
BenchmarkNasdaq 100 Notional Net Total Return Index
CurrencyUSD
Min. InvestmentUSD 5,000 · Additional: USD 500
TER0.30% (fund) + 0.20% (underlying ETF) = 0.50% all-in
Exit LoadNone — no entry or exit load
NAV (Apr 30, 2026)LT post-tax: 112.08 · ST post-tax: 108.60
NFO Allotment DateMarch 20, 2026 (same day as S&P 500 sibling)
DealingDaily NAV · Daily subscription and redemption
Contactifscfme@ppfas.com
Synthetic ETF Replication — What It Means and What It Doesn't

The Invesco NASDAQ-100 Swap UCITS ETF does not hold Apple, Microsoft, Nvidia, or any other Nasdaq 100 constituent. Instead, it enters a swap agreement with a bank counterparty. Under this agreement, the counterparty promises to pay the ETF the daily return of the Nasdaq 100 Net Total Return Index, in exchange for a fee. The ETF holds a "substitute basket" of securities as collateral.

What this means for you: Your economic return mirrors the Nasdaq 100 index (net of the 0.20% ETF fee). You are not exposed to the individual performance of Apple or Nvidia — you are exposed to the index as a whole. What you are additionally exposed to, that a physical ETF investor is not, is counterparty risk: if the swap bank defaults, the ETF may not receive its full return for that period.

Why this is well-managed under UCITS: European UCITS regulations require synthetic ETFs to hold collateral worth at least 90% of NAV at all times. The Invesco ETF operates within these rules. Invesco is one of the world's largest ETF providers. This is not an obscure or unregulated product — it is a mainstream UCITS instrument used by institutional and retail investors globally.

Bottom line: The counterparty risk is real but regulated and manageable. For most investors, the practical impact over a full market cycle is negligible — the index return is what you get, the collateral structure protects against catastrophic default. However, sophisticated investors should understand the structure before choosing this over the physical S&P 500 sibling.

Performance (as of April 30, 2026)
Since Inception (Mar 20, 2026)
+13.94%
vs Nasdaq 100 NTR: +14.90%
USD 100 grew to (scheme)
USD 113.94
vs benchmark: USD 114.90

The fund has been live for only ~6 weeks as of April 30, 2026. The +13.94% since inception reflects a period when US technology stocks were in a strong bull run — not a representative long-term return. The tracking difference (~0.80–0.85%) is slightly wider than the S&P 500 sibling due to the synthetic ETF structure and the European/US market window gap. Longer-term performance data will accumulate as the fund matures. Do not extrapolate these early returns.

Nasdaq 100 Sector Allocation (March 2026)
Information Technology
50.2%
Communication Services
15.3%
Consumer Discretionary
12.6%
Consumer Staples
8.6%
Health Care
5.1%
Industrials
4.5%
Utilities
1.5%
Materials
1.3%
Energy
0.7%

IT + Communication Services = 65.5% of the index. The Nasdaq 100 excludes Financials (the second-largest S&P 500 sector at 12.5%) and has far less Health Care and Industrials. This is a concentrated technology bet — not a broad market index. The top 10 companies in the Nasdaq 100 (Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet, Tesla, Broadcom, TSMC, Netflix) account for approximately 50–55% of the index.

Tequity's Analysis

A Concentrated Tech Bet — Choose This Only If You Mean It

The PPFAS Nasdaq 100 FoF does one thing: gives you concentrated US technology exposure. That is both its appeal and its risk. Over the 6-week inception period ending April 2026, it returned +13.94% vs the S&P 500 sibling's +10.02% — because US tech was on a tear. Over a full cycle, that relationship will not be linear.

  • When Nasdaq outperforms S&P 500: Tech bull markets, AI/semiconductor cycles, growth outperformance periods. The 2016–2021 run was one such. The 2023–2025 AI wave was another.
  • When Nasdaq underperforms: Rate hike cycles (2022 was brutal — Nasdaq fell ~33% vs S&P 500's ~18%), tech-specific corrections, valuation compression. The drawdowns are significantly larger.
  • Cost consideration: At 0.50% vs 0.35% for the S&P 500 sibling, you pay 0.15% more annually for Nasdaq exposure. Over 10 years at USD 50,000, that compounds to roughly USD 750–800 of additional cost. Not enormous — but meaningless if you're paying it for a bet you don't fully believe in.
  • The synthetic structure: For most investors, this will not materially affect returns. But if you are comparing two broadly equivalent products (this vs the S&P 500), physical replication is structurally cleaner. Choose Nasdaq only for the concentrated tech exposure — not as a default.

Who this is for: Investors who specifically want US tech as a satellite allocation (10–20% of global equity), understand that 65% IT/Comm Services concentration means high correlation to a single theme, and can hold through drawdowns of 30–40%+ in tech bear markets. Not a diversified core holding.

Our view: For most investors building a global allocation from scratch, start with the S&P 500 FoF. Add Nasdaq 100 only if you want to tilt toward tech with conviction — not as the default "which PPFAS fund should I pick?"

Nasdaq 100 FoF vs S&P 500 FoF — Side by Side

FactorNasdaq 100 FoFS&P 500 FoF
All-in TER0.50% p.a.0.35% p.a.
Exit loadNoneNone
Since inception+13.94%+10.02%
AUM (Apr 2026)USD 7.44MUSD 6.43M
ETF typeSynthetic (swap)Physical
No. of stocks100 (tech-heavy)500 (all sectors)
IT + Comm Services~65%~43%
Financials, HealthcareLow / Excluded22%+ (diversified)

Both funds share the same AMC, fund manager (Akshay Falgunia), NFO date (March 20, 2026), and no exit load. The difference is entirely in what you're betting on and how much you're paying for it.

Frequently Asked Questions
What exactly is a synthetic ETF and is it safe?+
A synthetic ETF delivers index returns via a swap agreement with a bank rather than by holding the underlying stocks. This introduces counterparty risk — if the swap bank defaults, the ETF may not receive its return. However, UCITS rules in Europe require 90%+ collateral coverage, making it a regulated and managed risk. The Invesco NASDAQ-100 Swap UCITS ETF is a mainstream product used globally. "Safe" is relative — the market risk of holding tech stocks is far larger than the counterparty risk from the swap structure.
Why does this fund cost more than the PPFAS S&P 500 FoF?+
The underlying ETF fee is 0.20% for the Nasdaq 100 Swap ETF vs 0.05% for the S&P 500 UCITS ETF — a 0.15% difference. This is Invesco's charge for the Nasdaq 100 ETF, not PPFAS's markup. The GIFT City fund itself charges the same 0.30% in both cases. The Nasdaq 100 ETF costs more because synthetic replication of the Nasdaq 100 involves more complex swap arrangements.
Can NRIs invest in this fund?+
Yes. NRIs and OCIs are listed as eligible investors. Non-residents benefit from full CGT exemption on IFSC fund units — no Indian capital gains tax. US and Canada-based NRIs should verify FATCA eligibility before investing — contact Tequity for a fund-specific check.
What is the dual NAV system for this fund?+
Tax is handled at the fund level. PPFAS publishes three NAVs — Subscription NAV (112.08), Redemption NAV Long-term post-tax (112.08), and Redemption NAV Short-term post-tax (108.60) — as confirmed in the April 2026 factsheet. You redeem at the NAV applicable to your holding period; the fund has already discharged the tax before declaring that figure. The specific rates and holding period thresholds are not stated in the factsheet — refer to the fund's Scheme Information Document or your CA for those details.
How do I choose between this and the S&P 500 FoF?+
If you want broad US market exposure with sector diversification and the cleanest structure, choose the S&P 500 FoF. If you specifically want concentrated US technology (Apple, Nvidia, Microsoft, Meta, Google, Amazon as your primary exposure), are willing to tolerate higher drawdowns, and understand the synthetic ETF structure, choose the Nasdaq 100 FoF. Both are valid — the choice is about portfolio intent, not which fund is "better."

Invest in This Fund

Enquire with Tequity → WhatsApp: +91 97642 89714

We help you decide between S&P 500 and Nasdaq 100, and handle the LRS / KYC process end to end.

Quick Facts

Min. InvestmentUSD 5,000
Min. AdditionalUSD 500
All-in TER0.50% p.a.
Exit LoadNone
AUM (Apr 2026)USD 7.44M
NAV (LT)112.08
NAV (ST)108.60
Fund ManagerAkshay Falgunia
ETF TypeSynthetic (swap)
DealingDaily
IFSCA Reg.IFSC/Retail/2025-26/006

Eligibility

Who can invest:

Resident Indians (via LRS) NRI OCI Eligible non-individuals

Check before investing:

US/Canada persons — verify FATCA
For NRIs: capital gains on IFSC fund units are fully exempt from Indian tax.
Data as of April 30, 2026 from official PPFAS IFSC factsheet. Performance data is pre-tax at fund level. Past performance is not indicative of future results.

S&P 500 or Nasdaq 100?
Let's Find the Right Fit.

The choice between these two funds depends on your risk appetite, portfolio context, and how much tech concentration you're comfortable with. We'll help you decide — honestly.

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