Can I Invest In AI, Green Energy, Or EVs Through Mutual Funds?

With all the talk about artificial intelligence (AI), green energy, and electric vehicles (EVs), you may be curious about how to invest in these areas. The good news is that anyone can invest in these megatrends, without needing too much money or knowledge for it. Mutual funds can help you put your money into these exciting sectors in a simple way.

Let’s take a look at what these megatrends are and how you can invest in them through mutual funds.

• Table of contents

• Why are people excited about AI, green energy and EVs?
• What are mutual funds and how do they help?
• How can I invest in AI, green energy or EVs through mutual funds?
• What should I keep in mind before investing?
• Should you invest in these sectors now?

Why are people excited about AI, green energy and EVs?

These sectors are growing fast across the world. Beyond just being trends, these spaces are actively shaping the future of the world. Here's why they are getting so much attention:

• Artificial intelligence (AI) is being used in almost everything, from mobile apps to healthcare and banking. As per a report released by PwC report, AI could contribute up to $15.7 trillion to the global economy by 2030.
• Green energy includes solar, wind, and other clean power sources. As per the International Energy Agency (IEA), renewable energy will supply almost 50% of the world’s electricity by 2030.

Electric vehicles (EVs) are becoming more popular as people look for cleaner transport. A BloombergNEF report projects that by 2040, more than half of new car sales worldwide will be electric.

These trends have the potential to be sustained for years. That’s why many investors want to be part of this change.

Also Read: Understanding Megatrends For Mutual Fund Investments

What are mutual funds and how do they help?

A mutual fund is like a basket that holds money from many people and invests that money in a mix of shares, bonds, or other assets. A professional fund manager handles the buying and selling.

Some reasons why mutual funds are a great way to invest in future trends:

• You don’t need to pick individual stocks. Financial experts do it for you.
• Your money is spread across different companies, which lowers your risk.
• You can start with small amounts as low as Rs. 500 in some cases.
• It’s easy to track and manage both offline and online.

You don’t need to be a stock market expert. You just need to pick the suitable type of mutual fund.

How can I invest in AI, green energy or EVs through mutual funds?

You can invest in these sectors in two main ways through mutual funds:

1. Thematic or sectoral funds: These funds focus on a specific theme or sector. For example:

• Technology funds: Some of these invest in companies working with AI, cloud computing, and robotics.
• ESG or green funds: These invest in companies that care about the environment and follow green practices.
• EV and new energy funds: Some newer funds target electric vehicle makers, battery companies, and clean energy firms.

Always check what the fund focuses on. Read the fund’s factsheet or talk to your financial advisor.

2. International funds: Some mutual funds in India let you invest in global companies. For example:

• Funds that invest in US tech stocks may include companies like Google, Microsoft or Nvidia, all of which are big players in the field of AI.
• Some funds invest in global clean energy firms or EV companies like Tesla.

This gives you a chance to ride the global growth wave, beyond just the local one.

3. Bajaj Finserv AMC and Megatrends: At Bajaj Finserv AMC, Megatrends are a cornerstone of many funds. Several schemes – Bajaj Finserv Flexi Cap Fund, Bajaj Finserv Healthcare Fund and Bajaj Finserv Consumption Fund – follow a megatrends investing strategy. These funds look for potential opportunities in Technological, Regulatory, Economic, Natural (environment), Demographic and Social (TRENDS) shifts to build a relatively resilient portfolio with long-term growth potential. Investing in such funds can give you an easy and accessible way to tap into megatrends and build a future-oriented portfolio.

What should I keep in mind before investing?

These sectors are growing fast, but they can also be risky. Some things to keep in mind:

• Prepare for volatility: While megatrends can be relevant for years, there will still be the risk of volatility, especially in the short term. In particular, sectoral and thematic funds may entail greater risk because of portfolio is concentrated in one or a handful of sectors. Cyclical ups and downs are likely.
• Think long term: Such funds are suitable for those who can stay invested for at least 5–7 years to allow these megatrends to play out over time.
• Diversify: A thematic/sectoral fund can be a part of a portfolio but it is also advisable to invest in other asset classes and broad market funds for more diversification and risk management.
• Understand the fund: Always read about what the fund is investing in. If you have further questions, you can with a financial advisor.

Should you invest in these sectors now?

The answer to that question depends on your goals and comfort with risk. If you are excited about the future and want to be part of these fast-growing changes, these funds can be a way to invest. But don’t rush in just because something sounds trendy.

Here’s how you can get started:

• Start small
• Balance your investments
• Keep learning

Also Read: Impact Of Technology On Mutual Fund Investments

Conclusion

AI, green energy, and EVs are shaping the future. Major global reports and experts agree that these areas will see strong growth in the coming years. Through mutual funds, you don’t need to be a tech wizard or an environment expert to invest. You just need to be curious, cautious, and consistent.

Bajaj Finserv AMC schemes with Megatrends investing

To know more about the Bajaj Finserv Flexi Cap Fund and for statutory details, click here.

To know more about the Bajaj Finserv Healthcare Fund and for statutory details, click here.

To know more about the Bajaj Finserv Consumption Fund and for statutory details, click here.