Mutual fund has launched Mirae Asset global X artificial intelligence and technology ETF fund of fund.It is an open ended Mutual funds scheme which will invest in units of global X artificial intelligence and technology ETF.
Table of Contents
Mirae Asset Global X Artificial Intelligence & technology ETF FoF
Mirae Asset Artificial Intelligence fund is own kind of fund in itself The fund uses Passive investment strategy and invest in mutual fund ( including ETF) of overseas companies, repo/reverse repo in corporate bonds.
The fund is investing in top 3 geographical exposure of United States (67.9%), China (9.5%) and South Korea (4.3%). . The fund will be exposed to foreign currency movement.
Investment Objective
The investment objective of the scheme is to provide long term capital appreciation.The scheme will invest in the units of global X artificial intelligence and technology.
Features Mirae Asset Artificial intelligence & Technology ETF FOF
| Features of the Fund | |
| Type of Investment | Thematic Fund |
| Investment amount lump sum | Rs 5000 and in multiple of Rs 1/-thereafter |
| Additional Purchase | Rs.1000 and in multiple of Rs 1/-thereafter |
| Minimum Investment amount SIP | Rs. 1000 |
| Investment Strategy | Passive approach |
| Benchmark | Indxx artificial intelligence and big data index TRI INR |
| Entry load | Nil |
| Exit load | 1%if withdrawn before completion of 1year |
| Risk profile | Highly risky |
| Fund manager | Siddharth Srivastava |
Where the fund will invest?
Mirae Asset Global X Artificial Intelligence & technology ETF FoF will invest in 3 geographical exposure United States, China and South Korea.
| Types of instrument | Minimum Indicative allocation (% of total assets | Maximum Indicative allocation (% of total assets | Risk Profile |
| Units of global X artificial intelligence and technology ETF | 95% | 100% | High |
| Money market instruments including Tri party repo /debt securities | 0% | 5% | Low to Medium |
The scheme will consists of portfolio of 83 companies spread across 20 industries with total market cap of USB 13.2 trillion.
What to expect from the fund?
- As per Mirae Asset company the artificial IQ index has given 20.4% return in last 7 years.
Please look at the presentation about the fund.
- The fund will invest in companies involved in development and utilization of Artificial Intelligence (AI) in their products and services and companies which enable such development through hardware and services.
- The index has generated 20.4% return in last 7 years, outperforming NASDAQ 100 in 4 out of 7 calendar years with lower risk.
- High Risk as the fund is investing in a thematic way
- Passive fund – As the fund will replicate the performance of underline ETF by investing in them
- The fund returns will be subject to foreign exchange cost and other associated charges.
- The single stock exposure is capped at 3% which lowers the risk compared to top heavy portfolio like NASDAQ 100.
- Thematic investments are associated with higher risk/Volatility.
Who should invest in Artificial Intelligence ETF FOF
Global x artificial intelligence and technology ETF will invest mainly in stocks of the foreign companies. The fund carries higher risk than the regular equity mutual fund.
The fund is suitable for those, who are ready to invest their money for 5 years or more and ready to invest in highly volatile fund.
How the gains will be taxed
Although the fund is investing in ETF and other mutual fund schemes, but the fund will be taxed as debt mutual funds.
| Duration | Tax Amount |
| Before 3 Year | Profits will be added to income & taxed as per the tax slab applicable |
| After 3Year | 20% with indexation |
After 3 year (from purchase date)
The fund carries debt mutual fund taxation. Therefore, If withdrawn after completion of 3 year the gain will be taxed at the rate of 20% with taxation
Before 3 year ( From purchase date)
If you withdraw the mutual fund before completion of 3 year the entire gain is will be taxed as per your tax slab rate
