The Edelweiss US Technology Equity Fund of Fund and the Motilal Oswal NASDAQ 100 ETF are both popular choices for Indian investors seeking exposure to the US technology sector, but they differ significantly in their investment approach, underlying holdings, and overall strategy.
Edelweiss US Technology Equity Fund of Fund
- Fund Type: A fund of fund (FoF) that invests primarily in the JPMorgan Funds – US Technology Fund.
- Investment Strategy: Actively managed by the underlying JPMorgan fund, focusing on a select portfolio of US technology companies with strong fundamentals.
- Expense Ratio: Higher, at 1.49% for the direct plan.
- Returns: The fund has shown strong returns, with 25.64% over the last 1 year, 25.50% over the last 3 years, and 16.04% over the last 5 years (as of August 20, 2025).
- Portfolio: Primarily invests in US technology companies, with a significant allocation to large-cap stocks.
Motilal Oswal NASDAQ 100 ETF
- Fund Type: An Exchange Traded Fund (ETF) that passively tracks the NASDAQ-100 Index.
- Investment Strategy: Replicates the NASDAQ-100 index, investing in the 100 largest non-financial companies listed on the NASDAQ stock exchange.
- Expense Ratio: Lower, at 0.58% (as of July 31, 2025).
- Returns: The fund has delivered strong returns, with 26.47% over the last 1 year, 24.54% over the last 3 years, and 19.61% over the last 5 years (as of August 21, 2025).
- Portfolio: A diversified basket of large-cap US technology and growth companies, including stocks from various sectors like technology, consumer discretionary, and healthcare.
Comparison Table
Feature |
Edelweiss US Technology Equity Fund of Fund |
Motilal Oswal NASDAQ 100 ETF |
Fund Type |
Fund of Fund (FoF) |
Exchange Traded Fund (ETF) |
Investment Approach |
Actively Managed (underlying JPMorgan fund) |
Passively Managed (tracks NASDAQ-100) |
Expense Ratio |
Higher (1.49%) |
Lower (0.58%) |
Portfolio |
Select portfolio of US tech companies |
Broad basket of NASDAQ-100 companies |
Flexibility |
Offers SIP and lump sum investment options |
Requires a demat account and is traded on exchanges |
Returns (past) |
Strong, but with higher expense ratio impact |
Strong, with lower expense ratio benefit |
Considerations for Investors
- Investment Style: If you prefer an actively managed approach with potential for outperformance, the Edelweiss fund might be suitable. If you prefer a passively managed, low-cost approach that mirrors a broad market index, the Motilal Oswal ETF might be a better fit.
- Expense Ratio: The lower expense ratio of the Motilal Oswal ETF can have a positive impact on long-term returns.
- Flexibility: The Edelweiss fund offers greater flexibility with SIP and lump sum investment options. The ETF requires a demat account and is traded like a stock.
- Risk Tolerance: Both funds are considered to have very high risk, as they invest in the US technology sector.
Conclusion
Both the Edelweiss US Technology Equity Fund of Fund and the Motilal Oswal NASDAQ 100 ETF are compelling options for investors seeking exposure to the US technology sector. However, the best choice depends on individual investment preferences, risk tolerance, and investment horizon. Investors should carefully consider the fund’s investment approach, expense ratio, and past performance before making a decision.
Edelweiss US Technology Equity Fund of Fund vs Motilal Oswal NASDAQ 100 ETF: A Comparison