Investors can also invest indirectly in metaverses and cryptocurrencies through mutual funds.
Investing is done indirectly in equities through mutual funds and now a new investment option is open. Investors can also invest indirectly in metaverses and cryptocurrencies through mutual funds. Sachin Bansal’s Navi Mutual Fund and Aditya Birla Sun Life Mutual Fund have filed separate applications for ETF Fund of Funds with market regulator SEBI. The proposed Fund of Funds of Navi Mutual Fund will invest in Metaverse and the proposed FoF of Aditya Birla Sun Life Mutual Fund will be invested in Blockchain/Virtual Digital Assets (VDA). Virtual Digital Assets means crypto and NFT.
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Where will the money be invested?
According to the scheme information document uploaded on the website of the regulator today (6 April 2022), both are open ended FoFs. Navi Metaverse ETF The FOF’s money will be invested in foreign ETFs that track companies in the Metaverse sector. The benchmark for Navi’s Metaverse ETF is ‘Solactive Metaverse Theme Index’, which is linked to the metaverse industry. In this, you will be able to invest at least Rs 500 and after that in multiples of Rs.
On the other hand, Aditya Birla Sun Life Blockchain & Virtual Digital Assets ETF will invest the FoF’s money in an ETF with a global blockchain theme. In this, you will be able to invest at least 100 rupees and after that in multiples of one rupee.
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Risk on investment?
There is no guarantee of returns in both the schemes. In the case of Aditya Birla Sun Life ETFs, the technology is still new and it is not yet used to its full potential. Apart from this, it cannot be said with certainty yet that blockchain technology will be widely adopted. If its use does not increase further, then the investment in the fund will be adversely affected. Both the schemes have been kept in the very high risk category.
(Article: Rajeev Kumar)