Investment avenues are opening up for Indian investors looking to bet on future technologies. After a number of innovation-focused international fund launches, mutual funds are venturing into newer areas.
Recently, Invesco Mutual Fund has filed draft papers with SEBI to launch an open-ended fund of fund (FoF) scheme that will invest in blockchain companies, which include cryptocurrency mining and exchange platforms.
The fund will invest in Invesco Elwood Global Blockchain UCITS ETF, an exchange traded fund listed on global stock markets. At present, the top three holdings of the ETF include HIVE Blockchain Technologies (crypto mining firm), Bitfarms (bitcoin mining solution provider) and Coinbase Global (crypto exchange).
This month Tata Mutual Fund has also filed papers for two technology funds — one Indian (Tata New Age Digital ETF) and the other international (Tata Global Innovation Fund).
The global innovation fund plans to invest in overseas funds, which have holdings in innovative companies. The digital ETF will invest in "emerging technology and internet companies like online shopping, food delivery, travel management, gaming, cloud computing, fintech & edu-tech companies."
Overseas funds are slowly gaining ground in India as investors look to diversify their holdings and invest in US tech giants and emerging new age companies.
In the first 8 months of 2021, inflows in overseas fund-of-funds has been over Rs 10,000 crore. The AUM has more than doubled to Rs 20,804 crore in August from Rs 9,847 crore in January. During the period, a number of NFOs were launched in the category including innovation FoFs from Kotak and Axis.
