Tata Mutual Fund (MF) has filed for a global semiconductor fund of fund (FoF) with the Securities and Exchange Board of India (SEBI). The fund will hold units of various overseas-listed exchange traded funds (ETFs) that in turn will invest in semiconductor chip companies that are listed overseas.
The ETFs are iShares Semiconductor ETF, iShares MSCI Global Semiconductors UCITS ETF, VanEck Semiconductor ETF, SPDR S&P Semiconductor ETF and Fidelity Select Semiconductors Portfolio.
The global shortage of semiconductor chips after Covid-19 lockdown has led to huge demand for the chips, showing the importance of chips for various industries -- automobiles, communication, smartphones, artificial intelligence, Internet of Things, etc.
Recently, there have been several mutual funds getting launched with focus on technology. Nippon Life India MF launched Nippon India Taiwan Equity Fund and Mirae MF launched Mirae Asset Hang Seng TECH ETF. Nippon’s Taiwan fund will invest in semiconductor chip manufacturers of Taiwan, while Mirae Asset Hang Seng TECH ETF will invest in China’s 30 largest technology companies.
Electric vehicle funds is another technology-theme that mutual funds are showing interest in.Sachin Bansal-backed Navi MF, which is among the newly launched fund houses, has filed for an electric vehicle (EV) fund. Mirae and Nippon Life India MF have also filed for EV funds.