Mutual funds' new-age technology schemes prove to be a non-starter

Despite several innovative tech FoF applications with Sebi, only one hits the market

Until a few months ago, asset management companies (AMCs) were gung-ho about new-age investment themes, seeking to launch passive schemes that invest in companies dealing in blockchain, internet of things (IoT), artificial intelligence (AI), and cloud computing.

Between October 2021 and May 2022, AMCs filed papers for 10 such schemes with the regulator -- most of them slated to invest in international exchange-traded funds (ETFs) focused on these technologies. But even as 2022 is now drawing to a close, only one of these schemes has managed to hit the market.

 The papers filed with the Securities and Exchange Board of