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Navi & Aditya Birla Sun Life Mutual Funds File For Crypto, Metaverse ETF FoFs.
Sachin Bansal’s Navi Mutual Fund and Aditya Birla Sun Life MF have filed separate ETF Fund of Funds with SEBI with an aim to help investors make gains from companies invested in metaverse and blockchain/virtual digital assets respectively.
Himanshu S.
11:19 6th Apr, 2022

According to the Scheme Information Document uploaded on the regulator’s website today (April 6, 2022), Navi Metaverse ETF Fund of Fund is an open-ended fund of fund scheme investing in units of overseas ETF’s which provide exposure to companies that are positioned to benefit from the advancement of metaverse.

Aditya Birla Sun Life Blockchain & Virtual Digital Assets ETFs Fund of Fund is also an open ended fund of funds scheme investing in the units of ETFs focused on the global blockchain theme (including Virtual Digital Assets.

Virtual digital assets include crypto and NFTs.

For Navi’s Metaverse ETF, the benchmark would be ’Solactive Metaverse Theme Index’. This index is designed to track the performance of companies that have, or are expected to have, significant exposure to the provision of products and/or services that contribute to the metaverse industry, according to the SID.

The document further says that the minimum application amount for Navi Met-averse ETF Fund of Fund will be Rs 500 and in multiples of Re 1.

For Aditya Birla Sun Life ETF, the minimum application amount during new fund offer period will be Rs 100 and in multiples of Re 1 thereafter.

None of these two schemes provide any assurance or guarantee that the investment objectives will be met.

Mutual fund investments also come with risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

In case of Aditya Birla Sun Life’s ETF, the SID says, “The technology is new and many of its uses may be untested. The mechanics of using distributed ledger technology to transact in other types of assets, such as securities or derivatives, is less clear. There is no assurance that widespread adoption will occur. A lack of expansion in the usage of blockchain technology could adversely affect an investment in the Fund.”

The riskometers of both the schemes show them falling in the “very high” risk category.

As per the SID, NAV’s scheme will allocate 95-100% in units of overseas ETFs that invests in companies engaged in Metaverse. The indicative list of overseas ETFs in which the scheme may invest include “Proshares Metaverse ETF” and Roundhill Ball Metaverse ETF”. The scheme will invest maximum of $300 million per Mutual Fund in overseas ETF, within the overall industry limit of $1 billion.

Navi’s scheme will be managed by Aditya Mulki.

Aditya Birla Sun Life Blockchain & Virtual Digital Assets ETFs Fund of Funds will allocation up to 95-100% in units of Exchange Traded Funds. The indicative list of ETFs in which this scheme may invest include:

Amplify Transformational Data Sharing ETF, Siren Nasdaq NexGen Economy ETF, First Trust Indxx Innovative Transaction & Process ETF, Bitwise Crypto Industry Innovators ETF,Global X Blockchain ETF, Invesco CoinShares Global Blockchain UCITS ETF, VanEck Digital Transformation ETF, First Trust SkyBridge Crypto Industry and Digital Economy ETF, ProShares Bitcoin Strategy ETF, Valkyrie Bitcoin Strategy ETF

Vinod Bhat would be the designated Fund Manager of Aditya Birla Sun Life’s Scheme.


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