The Mutual Fund Show: How To Gain Exposure To AI Sector

Mutual funds are a viable option for investors looking to invest in global companies in the technology and AI space, say experts.

Technology and the convenience that it provides, particularly in the field of artificial intelligence, is "mind-boggling", according to Rushabh Desai, founder of Rupee With Rushabh Investment Services.

As we move forward, our dependency on technology is going to increase day by day, Desai told Niraj Shah on The Mutual Fund Show.

"I think that global exposure, especially in the technology and AI space, is absolutely important," he said.

"For those who want to take exposure to this theme, the Indian mutual fund route is a good way. And we have various international funds, we have various exchange-traded funds, fund of funds available through which investors can actually get exposure...," said Mrin Agarwal, financial educator and founder of Finsafe India.

If someone wants to get exposure in global companies, Desai said mutual funds are "the most convenient and easy route to invest for all brackets, whether it is (an) HNI, or ultra-HNI, or the retail segment". Funds with AI themes have strong earnings and global presence, he said.

His top picks among passive funds are the Motilal Oswal Nasdaq 100 and the Mirae Asset NYSE FANG+ index fund. "These are the best two mutual funds that I can think of to play the whole technology theme and the AI theme," Desai said.

Agarwal concurred and mentioned the Mirae Asset S&P 500 Top 50 ETF that has got high exposure to this segment as well.

"One of the other reasons to look into mutual funds is because of the tax compliance that is associated with foreign stocks. It is pretty high in India," she said.