Nasdaq Composite

What the index actually tracks

The Nasdaq Composite captures essentially every common stock on the Nasdaq exchange — over 3,000 names spanning micro-cap to mega-cap, across all sectors including financials. It is market-cap-weighted, so the largest companies move it the most, and reporting suggests technology carries the heaviest sector weight. That makes it a broad read on America's growth and tech economy.

Don't confuse it with the Nasdaq-100, which holds only the 100 largest non-financial Nasdaq firms and is even more concentrated. Most India-marketed products track the Nasdaq-100, not the full Composite.

How an Indian investor gets exposure

You cannot buy the index itself, but several routes give you Nasdaq exposure in ₹ or dollars.

- Domestic funds — Indian mutual funds and ETFs that mirror the Nasdaq-100 trade on the NSE and BSE in rupees, with no overseas remittance needed. (Note: SEBI overseas-investment limits have at times paused fresh inflows into some international funds.) - Direct US stocks via LRS — platforms let you remit dollars under RBI's Liberalised Remittance Scheme, capped at USD 250,000 a financial year, to buy US shares and ETFs. - GIFT City / IFSC route — a newer channel where brokers offer US stocks and ETFs through India's IFSC, still drawing on your LRS limit.

The tax and cost angle

Under LRS, a 20% TCS applies to investment remittances above ₹10 lakh in a financial year. This is not an extra tax — it is collected in advance and can be adjusted against your income-tax liability or refunded.

Factor in forex conversion spreads (often 0.5-1%) each time you send money abroad. Gains on US holdings are taxable in India, and foreign assets must be disclosed in Schedule FA of your ITR.

For most Indians, a rupee-denominated Nasdaq-100 fund is the simplest entry; the LRS and GIFT City paths suit those wanting individual US shares and willing to manage the paperwork and currency risk that come with going global.