Invesco Mutual Fund intends to introduce an open-ended fund-of-funds scheme that will invest in the Invesco Elwood Global Blockchain UCITS ETF. If it is approved, this will be the first fund to allow Indian investors to participate in the blockchain concept.
The fund house said in a scheme information document (SID) filed with market regulator SEBI that the scheme will generate returns by investing primarily in units of Invesco Elwood Global Blockchain UCITS ETF, an overseas exchange-traded fund that aims to achieve the performance of the Elwood Blockchain Global Equity Index, minus fees, expenses, and transaction costs.
The Elwood Blockchain Worldwide Equity Index provides exposure to global companies in established and emerging regions that are involved in the blockchain ecosystem or have the potential to be involved.
Bitfarms (Canada), Hive Blockchain Technologies, Coinbase Global Inc, SBI Holdings Inc, Monex Group Inc, Taiwan Semiconductor Manufacturing Co, GMO Internet Inc, Kakao Corp, MicroStrategy Inc, and Aker ASA are among the top ten holdings in Elwood Global Blockchain UCITS ETF.
Risk involved with the fund
Concentration risk exists since the Scheme will primarily invest in units of the Underlying Fund. However, the Underlying Fund will have a diversified portfolio that includes constituents of the Elwood Blockchain Global Equity Index in their respective weightings, reducing concentration risk. Because the Scheme will primarily invest in overseas mutual funds, the Scheme will be subject to currency fluctuations. Because the Scheme is not permitted to use currency derivatives to hedge against currency risk under present regulations, currency risk will be an inherent risk of the Scheme.
The Underlying Fund, in which the Scheme will invest, has units that are listed on international stock markets. Authorized Participants can also subscribe to and redeem the Underlying Fund on all Business Days. In addition, the Scheme will keep a portion of its net assets to cover liquidity needs for repurchases and redemptions.
|Face Value||Rs. 10/- per unit|
|New Fund Offer Price||Rs. 10/- per unit|
|Min Application Amount||Rs. 1,000/- per application and in multiples of Re.1/- thereafter.|
|Minimum Target Amount||Rs. 10 Crores|
|Minimum Redemption Amount||Rs. 1,000/- or 0.001 unit or account balance whichever is lower.|