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10 mutual funds with maximum exposure to artificial intelligence

Indian investors are strategically positioning themselves these days within the artificial intelligence (AI) market landscape. Eight major companies have emerged as the frontrunners in this AI pack, including Alphabet, Amazon, Meta, Intel, NVIDIA, and more, setting the stage for investment exploration. For those eyeing exposure to this sector, two avenues are available — active or passive mutual funds.

Value Research has shared some data on these mutual funds that have the highest AI exposure:

Passive funds

Motilal Oswal Nasdaq 100 ETF spearheads the pack, boasting over ₹2,000 crore in investments, with one-third allocated to AI-exposed stocks. Following closely, Mirae NYSE FANG+ commands around ₹760 crore, dedicating over 50% of its scheme to these tech giants. Meanwhile, Motilal Oswal S&P 500 Index Fund allocates around 20% of its ₹530 crore to AI names. Additionally, ICICI Pru Nasdaq 100, with ₹285 crore, allocates roughly 33%, and Mirae S&P 500 Top 50 ETF invests ₹200 crore for a 35% allocation.

Active funds

The actively-managed funds showcase concentrated AI investments among a select few. The top five active funds collectively hold a substantial 88% share, amounting to approximately ₹12,000 crore in investments.
Parag Parikh Flexi Cap Fund leads the charge, channeling nearly ₹7,000 crore into AI stocks, constituting 16% of its scheme. SBI Mutual Funds also stand out, with SBI Focused, SBI Flexicap, and SBI Magnum investing ₹2,000 crore, ₹730 crore, and ₹133 crore, respectively, with varying allocations to AI companies. Furthermore, ICICI Pru Blue Chip holds around ₹133 crore, contributing a 5% allocation to AI-exposed stocks.

A summary of the 10 mutual funds with allocations

Mutual Fund Category Total Investment (₹ in crores) Allocation to AI Stocks
Motilal Oswal Nasdaq 100 ETF Passive 2000 33%
Mirae NYSE FANG+ Passive 760 >50%
Motilal Oswal S&P 500 Index Passive 530 20%
ICICI Pru Nasdaq 100 Passive 285 33%
Mirae S&P 500 Top 50 ETF Passive 200 35%
Parag Parikh Flexi Cap Fund Active 7000 16%
SBI Focused Active 2000 7%
SBI Flexicap Active 730  4%
SBI Magnum Active 133  11%
ICICI Pru Blue Chip Active 133 5%

Insights and trends

Alphabet (Google) stands as a preferred choice, featuring prominently in four of the five active schemes mentioned. Intriguingly, none of these active funds currently have exposure to NVIDIA stocks.

(Edited by : Shoma Bhattacharjee)

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