One can apply if wish to diversify portfolio. Reasons -
US markets looks good at the moment since NASDAQ's current p/e is 12 and estimated around 16 by next year thereby expect good returns.
You can own shares of world biggies like Apple, google, yahoo, microsoft, adobe, qualcomm, amazon, cisco, intel, oracle, vodafone! Isn't this attractive enough?
You can trade it as a share on nse/bse, sell if market is high and buy at lows, no entry/exit loads but brokerage will be charged as per your broker. You also have option to treat it as mutual fund and sell on NAV that'll be decided on a night befores closing of NASDAQ. So you can either use it as shares (etf) or mutual fund!
It's only available way for retailers to invest in The US market which is surely going to outperform if things don't turn very ugly in Libya/US deficits/another recession.
Now minus point, you'll pay rupees and in turn motilal oswal will convert it in dollars, buy shares and allocate you the asked units. If your buying NAV is 100 and it goes to 110 making upside of 10% BUT if you bought it when $ was rs 45 and sell at rs 41 than there is no profit since dollar weaken by 10% against rupee. Hence $$$ has to go up from your buying to get good profits. Else you can add more units if $ further weakens.
