The Securities and Exchange Board of India (SEBI) has received a draught scheme information document from Navi Mutual Fund for the Internet of Things ETF Fund of Funds (FoF). It is an open-ended fund that will invest in units of overseas exchange-traded funds that provide exposure to firms that will profit from the wider adoption of Internet of Things (IoT) technology.
According to the prospectus, the indicative list of overseas ETFs in which the Navi Internet of Things ETF Fund of Fund will invest comprises Global X Internet of Things ETF or similar overseas ETFs.
As of 5 April, the predicted underlying scheme, Global X Internet of Things ETF, had net assets of $407.95 million. It makes investments in firms that could benefit from the widespread adoption of the Internet of Things (IoT), which is enabled by technologies like WiFi, 5G telecommunications infrastructure, and fibre optics.
This comprises semiconductor and sensor development and manufacture, as well as integrated products and solutions and applications for smart grids, smart homes, linked autos, and the industrial internet. Dexcom Inc, STMicroelectronics, Advantech, Garmin, and Skyworks Solutions are among the top holdings of this ETF as of April 5, 2022.
Aditya Mulki will be in charge of the scheme. At Navi Mutual Fund, he is the designated fund manager for the Overseas ETFs.
The scheme will be measured against the Index Global Internet of Things Thematic Index, which was created to track the performance of companies listed in developed markets that are likely to benefit from greater Internet of Things usage (IoT). For over 15 years, Index has been creating and maintaining novel indexing methods for asset managers, ETF issuers, and banks. Within the total industry cap of $1 billion, the programme will invest in overseas ETFs up to $300 million per mutual fund.
