Navi MF intends to set up a fund to invest in metaverse companies
- ByStartupStory | April 9, 2022
Navi Technologies, the fintech startup on the verge of going public, has launched a metaverse-based Fund of Funds, the Navi Metaverse ETF Fund Of Fund, through its Navi Mutual Fund arm. Anmol Como Broking is the sponsor of the Fund of Fund program, which will be managed by Navi Mutual Fund. The assets owned by the Fund of Fund scheme will be managed by Navi AMC Limited.
The fund manager at Navi will be Aditya Mulki, a chartered accountant with experience managing funds. Mulki has managed nine funds thus far in his career.
“An open-ended fund of fund scheme investing in units of overseas ETFs that provide exposure to companies that are positioned to benefit from the growth of Metaverse,” according to paperwork submitted by the company.
According to Navi, Investors will put their money into Exchange-Traded Funds, or ETFs, that invest in companies that are well-positioned to gain from the metaverse’s progress. In simple terms, an investor will be requested to contribute to a fund that will be used to invest in metaverse-based businesses. Navi intends to invest a total plan corpus of $1 billion in several funds, with maximum investment in a single ETF of $300 million.
A NAV unit with a face value of INR 10 will be offered by the corporation. For example, if a client invests INR 500 in the plan, they will receive 50 units spread among the ETFs Navi would be investing in. The risk is significant because Navi Mutual Fund will be purchasing equity shares in these metaverse-focused businesses.
The investment objective, according to documents filed by Navi, will be to create long-term capital gains by investing in overseas ETFs and/or Index Funds that invest in startups or other companies developing metaverse-related use cases, products, and services. Navi will invest in debt instruments such as Debt Schemes, Debt & Money Market Instruments, including Tri-Party Repo, G-Secs, Cash, and Cash at Call, among others, to a degree under this scheme. However, this investment will be limited to a maximum of 5% of the fund’s entire value.
Follow Startup Story
Related Posts
