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Nvidia bags Rs 1,700 crore worth of Indian mutual funds; More to know about the company
Delve into the unprecedented Rs 1,700 crore investment surge by Indian mutual funds into Nvidia, shedding light on the company's dominance in the tech sector and impact on global investment market.
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Indian mutual funds pour Rs 1,700 crore into Nvidia, reflecting growing investor confidence in it
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Motilal Oswal, Mirae Asset, and Franklin Templeton are top investors for passive funds in Nvidia
Nvidia has attracted Rs 1,700 crore in investment from Indian mutual funds. This surge in investment coincides with a massive rally in Nvidia shares, cementing its position as Wall Street's favorite stock, as per the Economic Times.
Passive funds lead the charge
Passive funds in India have taken the lead in investing in Nvidia, with many of them having significant exposure to the AI giant. Fisdom Research reported that Motilal Oswal had the highest exposure to Nvidia in January, investing approximately Rs 439 crore. Mirae Asset Mutual Fund and Franklin Templeton Mutual Fund followed suit, investing around Rs 200 crore each. Bandhan Mutual Fund had the lowest exposure, at Rs 14 crore.
Active funds have shown relatively limited involvement in Nvidia, as opposed to the numerous passive funds that have invested in it. Only two active funds had exposure to Nvidia. Axis Special Situations Fund and Axis Growth Opportunities Fund had exposures of Rs 8.4 crore and Rs 118.5 crore, respectively, accounting for a smaller portion of their total assets under management (AUM).
Impact on fund NAV
The impact of Nvidia's performance on mutual fund net asset values (NAVs) varied significantly. A one-day change in Nvidia's price had the greatest tentative impact on Mirae Asset NYSE FANG+ ETF, accounting for approximately 1.9% of NAV. Nasdaq, on the other hand, had a total exposure of approximately 4.6% to Nvidia, resulting in a notable but minor impact on its NAV. 
Nvidia's remarkable run
Nvidia's market success has been nothing short of extraordinary. The company's market value recently surpassed that of well-known companies such as Amazon and Alphabet. Its shares rose by approximately 29% in just one month, aided by a staggering 16% increase in a single day, adding a staggering USD 277 billion to its market capitalization.
The increase in Nvidia's stock price followed its impressive Q4 earnings report, which saw revenue more than triple from the previous year to USD 22.10 billion, exceeding all expectations. The report prompted at least 17 brokerages to raise their Nvidia price targets, with some, such as Rosenblatt Securities, setting targets as high as USD 1,400, implying a potential market value of USD 3.5 trillion.
Nvidia's dominance in the high-end AI chip market, which accounts for roughly 80% of the total market share, has been a key driver of its success. This market position, combined with impressive financial performance and bullish analyst forecasts, has cemented Nvidia's status as a top choice for global investors.
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