Tata Mutual Fund (MF) has applied for a Global Semiconductor Fund (FoF) with the Securities and Exchange Board of India (SEBI). The fund will hold shares in several publicly traded exchange-traded funds (ETFs), which in turn invest in foreign-listed semiconductor chip companies.
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 the Covid-19 crash has created a huge demand for chips, demonstrating the importance of chips to various industries: automobiles, communications, smartphones, artificial intelligence, the Internet of things, and more.
Several mutual funds with an emphasis on technology have recently been launched. Nippon Life India MF launched the Nippon India Taiwan Equity Fund and Mirae MF launched the Mirae Asset Hang Seng TECH ETF. Nippon’s Taiwanese fund will invest in Taiwanese semiconductor chipmakers, while Mirae Asset Hang Seng TECH ETF will invest in China’s 30 leading technology companies.
Another technology topic of interest to mutual funds is electric vehicle funds.
Navi MF, with the support of Sachin Bansal, one of the recently launched fund companies, has applied for the electric vehicle (EV) fund. Mirae and Nippon Life India MF have also applied for electric vehicle financing.