Mutual fund companies will soon launch blockchain and metaverse programs

Digital assets, cryptocurrency and metaverse are the buzzwords in financial markets these days. Of course, the mutual fund industry also wants to join in the fun. Two fund houses – Navi Mutual Fund and Aditya Birla Sun Life Mutual Fund – have filed drafts for these funds. Navi Metaverse ETF Fund of Fund and Aditya Birla Sun Life Blockchain & Virtual Digital Assets ETFs Fund of Fund are awaiting Sebi’s approval for launch.

However, these two diets are not the pioneers in this field. Last year, Invesco Mutual Fund almost launched the Invesco India fund – Invesco CoinShares Global Blockchain ETF Fund of Fund – on November 24. However, the fund company had to put the launch on hold due to uncertainty surrounding cryptocurrency investment rules in India.

Now that rumors of cryptocurrency bans have passed, the industry is ramping up. According to the draft statement, ABSL Blockchain & Virtual Digital Assets ETFs Fund of Fund will be an open-ended fund of funds investing in the shares of global blockchain-themed ETFs. The fund will be benchmarked against the MSCI ACWI IMI Blockchain Economy Index.

On the other hand, Navi Metaverse ETF FOF will be an open-end fund of funds investing in shares of foreign ETFs that provide exposure to companies that are positioned to benefit from the advancement of Metaverse.

Mutual fund advisors believe that these new plans keep up with the times and can be a good way to diversify into new areas. However, whether these plans make a significant contribution to retail investors’ portfolios at this time is a question that needs further consideration, advisers say.

“We already live in a digital world and in the future, technology will only advance. I am personally very optimistic about the global IT and technology space. Even though the future of Metaverse and Blockchain technologies looks bright, they are relatively very new technologies and their market is not fully explored and matured. There will be a lot of upfront risks and issues so I would not recommend investors to invest in Metaverse and Blockchain pure tech companies and would like to wait until this market is a bit more explored and mature globally . At present, investors looking to invest in the IT and technology space may consider investing in well-established and well-diversified global multi-technology giant companies and recommend investors look to the NASDAQ 100 and FANG PLUS funds. says Rushabh Desai, founder of Rupee. With Mumbai-based Rushabh Investment Services.

Babu Krishnamoorthy, Chief Sherpa, FinSherpa Financial Advisors, believes that even though metaverse and blockchain are the future technologies, more regulations are needed to balance this space. “You will see investors realizing asymmetric returns in such technology. Therefore, some will disapprove of these funds and some will swallow them. The only thing investors should keep in mind is that these are future tech funds and good options, but also very high risk. So proceed with caution,” says Babu Krishnamoorthy.