FAANG+: THE WORLD’S TOP 10 COMPANIES!

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Invest in Facebook, Apple, Netflix, Amazon and Google!!! Drooling already? Yes, these are the world’s richest companies. People die to invest in these companies because they give returns like no other. But due to limited investment openings, many people lose the opportunity. it is also very costly to buy their shares directly. Many platforms provide the shares of these companies in fractions also, but the profit is not very appealing.

In this blog, we will tell you all about this great opportunity which showed itself for the first time in India.

WHAT IS FAANG+?

FAANG+ is an acronym for Facebook, Amazon, Apple, Netflix, and Google (now known as ALPHABET). These are the five top American technology stocks that are being referred to in this acronym. This word was coined by the host of CNBC’s Mad Money, Jim Cramer. 

Now for the first time, Indian investors are getting the opportunity to invest in global technology giants such as Facebook, Tesla, Netflix, Amazon, and 6 others.  

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ABOUT THE INVESTMENT 

Mirae Asset mutual fund declared the open of two new FAANG+ funds -‘Mirae Asset NYSE FANG+ ETF’. it is an open-end fund. This means that the investors can buy and sell stocks even after the closing date.  This scheme was launched on 19th April for the people to subscribe. While the one terminated on 30th April, the other will end on 3rd May. The minimum investment amount in both investments is Rs 5000. 

It has the world’s top ten global innovation leaders – ALIBABA, FACEBOOK, ALPHABET, APPLE, AMAZON, TESLA, NETFLIX, TWITTER, BAIDU, and NVIDIA.

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FAANG+: INVESTMENT BENEFITS

Right now, India is suffering from one of the worst waves of COVID-19 in the world. The daily count of death is increasing day by day. In this situation, the government has regulated partial and full lockdown in different states. Many businesses got closed down. People are concerned about their next meal and due to these factors. Indian companies are not performing that well in the stock exchange market. BSE Sensex overview being at -983.58 points and on the other hand NASDAQ at -129.35 points. This data speaks for itself.

In this pandemic, many businesses were shut down. But the companies like Amazon and Tesla continued to earn. They even increased their wealth to multiple folds. With this, their investors also got rich. They didn’t face any problems when the world stopped. Besides, there is no denying the fact that FAANG+ companies were the main drivers of NASDAQ for a long time now.

Now in this situation, when the people here are getting the opportunity to invest in a foreign market where the situation is improving, Indices are standing again, and that too at a phenomenal rate, they ought to grab the opportunity. In addition to wealth creation, investors will also have return security for the near future.

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The return for Indian investors will be greater than the returns for US investors because of the difference in the value of Indian rupees and US dollar and fluctuation in the dollar.

By investing in these companies, you will be able to participate in the global market at a very low cost and play a part in the company’s success journey. These giant tech companies store the majority of the growth during and after the pandemic.

“Through the funds, investors can participate in the global growth story, and consequently feel like they too are part of the change driving our world today,” said Mr. Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.

FAANG+: POTENTIAL RISKS

Even though investing in FAANG+ has many positive points, but pitting you money without analysing could create chaos in your finances. 

Before investing in any company, one should analyse many factors, like the current situation of the economy, the company’s image, the recent news related to the company, and many more.

If we look at the current situation of the economy, we can clearly see that every country has been deeply affected by coronavirus lockdowns and fatalities. It may happen that one country got less affected than the other, but every one of them faced some losses. So before moving on with the decision, just think if you are ready to bind your money for a specific period of time in such an unpredictable situation.

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  • Higher the investment, the higher the risk. There is no written rule that the market price of Amazon and Facebook shares will never fall. There is no sure return. Some days it can be 10% and some days it can be 100% also. There are even chances of zero and also negative return. Such schemes do not guarantee or assure any returns.
  • The image of companies you are investing in also matters. For example, the Chinese government charged Alibaba for violating anti-monopoly rules. Amazon’s position is in question for its labor union strike. Facebook has recently been in a controversy regarding its privacy policy. Such news really tarnishes the organization’s image in the global market and due to this investors have to suffer losses.
  • it is a very concentrated investment with the options of only ten companies. if even one company performed badly, others will also experience its effect.

PERSONAL JUDGEMENT

We think that it’s a very great opportunity for Indian investors to invest in such companies. Their returns are very inviting. But always know that with high return comes great risk. We would recommend this scheme only to expert investors only. Amateurs should begin with learning about their investment options and should start from more secure options like SIP.

Comment below if you want to see an article on secure investment options.

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