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- Investing in global AI companies - Is global diversification important?   Niraj Shah in conversation with Mrin Agarwal and Rushabh Desai on 'The Mutual Fund Show'. #NDTVProfitLive

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00:00 Minal and Rishab, thank you so much for joining us on the show.

00:03 And let's start off straight off the bat with something that caught the imagination of everybody

00:07 at the World Economic Forum and otherwise, which is AI.

00:10 And so many people would be thinking that if I want to play AI, and if there aren't

00:16 too many stocks that I know how to play, is there a mutual fund route to do this?

00:21 Now when we were looking at funds which probably have some bit of AI angle because of global

00:26 investing, there are a few active funds and a few passive funds, and which is what I want

00:31 to get to you both of you for, for people who are obsessed with investing into AI related

00:39 teams, is there a mutual fund route to do this?

00:42 Minal, I'll start off with you.

00:44 We have some names, we'll get to that as well.

00:45 But prima facie, is the mutual fund route, Indian mutual fund route, a good way to take

00:50 advantage of what could happen in AI over the course of the next few years?

00:57 Good afternoon, Neeraj.

00:59 Yes, absolutely.

01:00 For those who want to take exposure to this particular theme, certainly I think the Indian

01:08 mutual fund route is a good way and we have various international funds, we have various

01:13 ETFs, FOS that are available, through which investors can actually get exposure to some

01:20 of these, part of these magnificent seven stocks that have of course run up a lot in

01:26 the last one year.

01:27 But yes, the answer to your question is yes.

01:31 Okay.

01:32 Rushabh, what about you?

01:34 I mean, are you in agreement or do you believe that it's not great to use the Indian mutual

01:39 funds for the AI piece?

01:40 Good afternoon, Neeraj.

01:41 Thanks so much for having me on the show.

01:45 I absolutely agree with Mrin that investors should be obsessed with technology and AI,

01:51 particularly today.

01:52 I mean, who knew probably say like 10 years or 15 years back, where with a click of a

01:57 button we can access so much more, like a different world altogether.

02:01 Like imagine a CV being automated by chat GPT.

02:06 I mean, it was like mind boggling to see how with precision and perfection, AI technology

02:12 works today.

02:13 And as we move forward, the dependency of our lives on technology is going to increase

02:19 day by day itself.

02:21 So I think, a global exposure, especially in the technology space, in the AI space is

02:26 absolutely important.

02:28 And the most convenient and easiest route to invest for all brackets, whether it is

02:34 HNI, Ultra HNI or the retail segment, I think mutual funds is the best vehicle if someone

02:40 wants to take exposure in global companies, technology companies, giant companies who

02:45 have global presence, Neeraj.

02:47 So Rishabh, let's start with you on this.

02:50 There are a few passive funds which effectively mimic or mirror some of those global indices

02:56 which have the NVIDIA, Google, etc. of the world.

03:00 There are five names that we could think of, and we have those, they'll come up on the

03:04 screen in a moment from now.

03:06 But you've looked at that list as well.

03:09 Are these passive funds a good way to play the AI theme?

03:13 Neeraj, absolutely.

03:14 I think particularly Nasdaq 100 and the FANG+ Index Fund is the best two mutual funds what

03:23 I can think of to play the whole technology theme and the AI theme.

03:28 Now I'll just give you a small difference between both of these funds.

03:31 Now particularly Nasdaq 100 invests in the top 100 companies as per market cap in the

03:39 Nasdaq Index.

03:41 Now I pulled out some data around 50 to 60% out of these companies, say like 50-60 companies

03:48 in the Nasdaq 100 falls in the proper technology bracket and rest falls into different sectors

03:56 as well.

03:57 Now if you see the FANG+ Index, which Mirai has said FANG+ is a fund where investors can

04:04 look at, now they invest in top 10 innovation companies globally.

04:10 Now it can be from the US market, it can be from the China market.

04:16 So if someone wants to take exposure, I think these two funds are the best vehicles rather

04:23 than scouting for other global funds.

04:27 I think passive funds, if someone wants to take 100% pure global exposure, I think passive

04:33 funds like Nasdaq 100 and FANG+ funds will do the job.

04:38 Okay, Mirin, sorry out of time completely, but one quick response from you on either

04:43 the passive or the active side, are there funds that you believe are good ones to play

04:47 the AI theme?

04:48 No, I actually agree with what Rishabh said and one of the other reasons why you need

04:54 to look at the mutual funds and not trying to do this yourself, not trying to buy the

04:59 stocks yourself is because of the tax compliance that's associated with foreign stocks.

05:05 So it's pretty high, especially with unlisted equity in India.

05:08 So I also agree that the Mirai Asset, FANG+ and the Motilal-Oswal Nasdaq 100 ETF would

05:14 be your best bet if you want to take exposure to this.

05:17 You also have the Mirai Asset, S&P 500 that's got a high exposure to this segment as well.

05:23 But I think the FANG+ ETF, which Rishabh also spoke about, seems to be the best bet.

05:29 But remember, this is a thematic fund, so it's going to come with its risks.

05:34 Okay, well, we are out of time completely, but thank you so much, both of you for joining

05:39 us on this very quick-paced truncated episode of the Mutual Fund Show.

05:42 Really appreciate your time and much appreciate.

05:46 And viewers, that's it on this leg of the Mutual Fund Show.

05:48 Stay tuned.

05:49 We'll be back with more market action on NETB Profit.

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07:09 (upbeat music)

Investing In AI Companies | The Mutual Fund Show | NDTV Profit

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