Navi MF files draft for Internet of Things ETF Fund of Fund

7 Apr 2022 , 06:20 PM

Sachin Bansal-led Navi Mutual Fund (MF) on 7 April 2022 filed an offer document with the Securities and Exchange Board of India (Sebi) for a Internet of Things ETF Fund of Fund.

The investment objective of the scheme is to provide long-term capital appreciation by investing in units of overseas ETFs that tracks the performance of companies that are expected to benefit from the increased adoption of the Internet of Things (IoT).

According to the scheme information document, the minimum application amount will be Rs 500 and in multiples of Re 1 thereafter. The scheme’s riskometer states that the scheme will fall in the ‘very high risk’ category.

The scheme will replicate Indxx Global Internet of Things Thematic Index. The index has been backtested to 30 June 2010 and has a live calculation date of 29 August 2016.

The top 5 index constituents by weight are Dexcom Inc (7.95%), Stmicroelectronics Nv (7.14%), Advantech Co Ltd Ord (6.18%), Garmin (5.36%) and Skyworks Solutions Inc (4.83%).

The corpus of the scheme will be invested in units of overseas ETFs, which will include Global X Internet of Things ETF and/or similar overseas ETF.

Global X Internet of Things ETF has total expense ratio of 0.68%.

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