Navi Mutual Fund has filed a draft scheme information document with the Securities and Exchange of India (SEBI) for Internet of Things ETF Fund of Funds (FOF). It is an open-ended fund that will invest in units of foreign exchange-traded funds that provide exposure to companies that benefit from the widespread adaptation of Internet of Things (IoT) technology.
An indicative list of foreign ETFs in which the Navi Internet of Things ETF Fund of Funds will invest includes the Global X Internet of Things ETF or similar foreign ETFs, according to the document.
The Global X Internet of Things ETF, the expected underlying plan, has net assets of $407.95 million as of April 5. It invests in companies that potentially benefit from widespread adoption of the Internet of Things (IoT), as enabled by technologies such as WiFi, 5G telecommunications infrastructure, and fiber optics. This includes the development and manufacture of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial Internet. The top holdings of this ETF as of April 5, 2022 include Dexcom Inc., STMicroelectronics, Advantech, Garmin and Skyworks Solutions.
The scheme will be managed by Aditya Mulki. He is the dedicated Fund Manager for Overseas ETFs at Navi Mutual Fund.
The scheme will be benchmarked to the index Global Internet of Things Thematic Index, which is designed to track the performance of listed companies in developed markets that are expected to benefit from the increasing adoption of Internet of Things (IoT) . Index has been developing and maintaining innovative indexing strategies for asset managers, ETF issuers and banks for more than 15 years.
The plan will invest in foreign ETFs, within the overall industry cap of $1 billion, up to a maximum of $300 million per mutual fund.