What are the FAANG Stocks?

FAANG is a frequently merged-together acronym for the stocks of the 5 top tech companies that are dominating the broader market, remaining at double-digit income growth for the decade. Facebook, Apple, Amazon, Netflix & Google (now Alphabet) make up 5 the FAANG stocks.

These 5 companies have created dominant positioning in the social media, smart devices, eCommerce, entertainment and online advertising niches respectively. This has been possible majorly because of the significantly advanced technological developments that these companies have made alongside their business model innovations – making them much sought after investment opportunities.

What have been the long term returns from FAANG stocks?

While there were skeptics initially for these online business models, some people did see the long-term vision of these tech companies and invested. We’re sure they are smiling now. Here are CAGR returns from these 5 companies in the last few years:

Company CAGR Timeline
Facebook ~25% 7 Years (Since IPO)
Apple ~36% 15 Years
Amazon ~37% 22 Years (Since IPO)
Netflix ~40% 17 Years (Since IPO)
Google (Alphabet) ~22% 15 Years (Since IPO)

In comparison the benchmark index NASDAQ grew only ~9% in the last 15 years.

Why invest in FAANG stock in 2019?

The word “FAANG” was made in Feb 2013 by Jim Cramer host of CNBC’S Mad money & his colleague Bob Lang. They both gave authority to this association of these stocks, forecasting that they will perform extremely well in the markets. Since then, this group dominated the market. And as it looks like their dominance shall continue going forward as well.

Their historic track record of stellar returns and their future potential definitely makes the FAANG stocks an interesting pick. But how can you, sitting here in India invest in these FAANG stocks?

Introducing Kristal.ai – a platform for international investments

Established in the year 2016 by Vineeth Narasimhan and Asheesh Chanda, what began as a motivated idea drafted on a whiteboard, is now thriving and present inside of three nations. At this current time, Kristal.ai is functional in Hong Kong, India as well as Singapore and the firm has clients across the Middle East, the Americas as well as Asia. Kristal.ai makes international investments possible for everyone with simple processes.

Kristal.ai also has a diverse financial advisory team of researchers as well as market pros. They study these international markets to pick the right investment opportunities. Basis their research, they create baskets of investment opportunities or Kristals that they manage on an ongoing basis to maximise returns. You can directly invest in some of these Kristals via their app and let them  manage your investments with their expert team. Kristal.ai has received various awards, accolades, as well as identification across the three mentioned nations.

How can you invest in FAANG stocks via Kristal.ai?

Kristal.ai has a managed portfolio for the FAANG stocks. On this FAANG Kristal, you can select the amount that you want to invest and the AI algorithm will decide the allocation of funds on an ongoing basis to help you maximise the possibilities of returns. The strategy is rebalanced every quarter to optimize results. The allocation to each company is determined by an algorithm based on the historical returns and risks associated with each underlying stock. This strategy is best suited for investors with an aggressive risk profile, with returns being the principal objectives of the strategy.

Since this managed Kristal was added on the platform in Feb 2018, this Kristal has seen a return of 17.95% so far!

We believe that this can be a valuable diversification to your portfolio. Kristal has currently launched an India plan basis which you can invest on Kristal and invest in global ETFs upto USD 50,000 without any brokerage.

Disclaimer:

Please note: This is not a general recommendation for everyone. Actual asset allocation for an individual depends on individual risk profile. Do read the offer documents carefully before investing.

Featured Image Credit: My Sage Investor