If you are bored of investing in regular mutual fund schemes and looking for unique mutual fund schemes, then this article can be interesting for you. Mutual Fund houses has started filing for unique mutual fund schemes with SEBI in the last 6 to 9 months. Such mutual fund schemes never existed in the Indian mutual fund industry earlier. In this article we would provide 10 Unique Upcoming Mutual Fund Schemes in 2022 in India.
Also Read: 5 Aggressive Hybrid Mutual Funds to invest in 2022
10 Unique Upcoming Mutual Fund Schemes in 2022
These upcoming mutual fund schemes draft prospectus is filed by mutual fund houses with SEBI and would be open for subscription in coming months.
#1 โ Edelweiss Gold and Silver ETF FoF
Currently there are silver ETFs. There are gold mutual funds and ETFs. However, there is no mutual fund scheme which invests in a combination of both. Edelweiss Gold and Silver ETF FoF m would invest in both gold and silver components.
Edelweiss MF already got SEBI approval and this new fund offer would open for subscription on 24th August, 2022.
Gold as an asset class generated 5% annualized returns in last 10 years and 11.5% annualized returns in last 5 years.
On the other hand silver has generated 1.5% annualized returns in last 10 years and around 8% in the last 5 years.
For portfolio diversification one can always invest in gold, however, one should think whether they would really need to invest in silver or not. This could be riskier proportion too.
#2 – Navi Internet of Things ETF Fund of Fund
Navi mutual funds keep launching index funds. However, now they have filed for a new fund offer with SEBI which is Internet of Things ETF FoF.
This mutual fund scheme is an open-ended fund of fund scheme investing in units of overseas ETFs which provides exposure to companies that stand to benefit from the broader adoption of the Internet of Things (IoT) technology. The fund would invest in another ETF โ Global x IOT Technology ETF.
This underlying fund performance is as below:
Last 1 year โ Negative 27%
Last 5 years annualized โ 8.6%
Since inception โ Annualised returns โ 10%
#3 โ Navi Metaverse ETF Fund of Fund
Again, this is another unique upcoming NFO in the mutual fund industry. Navi mutual fund has filed with SEBI to come up with a new mutual fund scheme Navi Metaverse ETF FoF.
This is a fund of fund scheme investing in units of overseas ETFโs which provide exposure to companies that are positioned to benefit from the advancement of the Metaverse. This FoF would invest in overseas ETF – Roundhill Ball Metaverse ETF.
This underlying Roundhill Ball Metaverse ETF has generated negative returns of 46% since inception of 1 year and 3 months.
#4 โ HDFC Defence Fund
HDFC has filed a new fund offer HDFC Defence Fund.
This is an open-ended equity scheme investing in Defence & allied sector companies. Currently there is no mutual fund that invests in the defence sector and is a unique mutual fund scheme.
Currently there is a good craze about defence companies due to an increase in spending by the govt of India. Few examples are given below:
- HAL stock prices shot up by 250% in last 3 years and 100% in the last year.
- BDL share prices increased by 180% in the last 3 years and 110% in the last 1 year.
- BEML where share price increased by 110% in the last 3 years and 33% in the last 1 year.
Hence funds like HDFC Defence Fund, which invests in defence and allied sectors can provide good returns in medium to long term.
#5 โ Mirae Asset Cloud Computing ETF FoF
The minute we talk about Mirae Asset, investors would recall Mirae Asset Emergin Blue chip which is one of the best mutual fund schemes that gave good returns in short term to long term. Mirae Asset has filed a new fund offer – Cloud Computing ETF FoF with SEBI now.
This is a fund of fund scheme investing in overseas equity Exchange Traded Funds which are based on companies positioned to benefit from the increased adoption of cloud computing. These include companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a Service (IaaS), managed server storage space and data center real estate investment trusts, and/or cloud and edge computing infrastructure and hardware.
#6 – Mirae Asset Global Clean Energy ETFs Fund of Fund
Mirae Asset also filed new fund offer about Global Clean Energy ETF FoF.
This fund of funds scheme invests in overseas equity Exchange Traded Funds which are based on companies that produce energy from renewable sources and companies that stand to benefit from the increased adoption of technologies that inhibit or reduce negative environmental impacts.
#7 – Nippon India Artificial Intelligence Fund of Fund
Nippon India mutual funds is coming up with the new fund offer that invests in companies which would benefit from the Artificial Intelligence theme.
This fund of fund scheme investing in units of DWS Invest Artificial Intelligence.
This underlying fund performance is as below:
Last 1 year โ Negative 10%
Last 3 years annualized โ 16.5%
Since inception โ Annualised returns โ 13%
#8 – Mirae Asset Artificial Intelligence & Technology ETF Fund of Fund
Mirae Asset has filed for another new fund offer which is Mirae Asset Artificial Intelligence and Technology ETF FoF.
This is an open-ended fund of fund scheme that invests in units of Global X Artificial Intelligence & Technology ETF.
This underlying fund performance is as below:
Last 1 year โ Negative 26%
Last 3 years annualized โ 11%
Since inception โ Annualised returns โ 10.5%
#9 – DSP Future of Transportation Fund of Fund
This is another unique upcoming mutual fund scheme. DSP Mutual Funds have filed with SEBI on floating DSP Future of Transportation Fund of Fund.
This fund is an openย endedย fundย ofย fundย schemeย investingย inย overseasย fundsย &ย ETFsย whichย investsย inย global companies which are involved in research, development, production and/or distribution of future transport technology.
Also Read: Top 10 Mutual Funds that gave highest SIP returns in last 10 years
#10 – Motilal Oswal Precious Metals Fund of Fund
Though name looks fancy, Motilal Oswal Precious Metals FoF actually invests in units of gold and silver exchange traded funds.
Like we indicated above, investing in gold can be done for portfolio diversification. However, investing in silver can be riskier in the long term.
Conclusion: Though mutual fund houses are coming up with unique mutual fund schemes now, investors should always check the past performance and future prospects in such themes before investing.
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These are all unique ideas, but this does not mean that they will be able to perform. It is better to have a diversified mutual funds based on market cap size.
Majority of them are investing in new areas, hence we do not know how such themes would work out. Yes, no where I have indicated that these found would be able to perform better. One should check before investing.