Public Mutual launches Public e-Islamic Innovative Technology Fund (PeISITF) - focus fund on future tech like AI, Virtual Reality, Medical Innovations

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Public Mutual just launched a new fund called Public e-Islamic Innovative Technology Fund (PeISITF). This fund is a global sector focused fund primarily concentrating on AI, Virtual Reality, Medical Innovations, Cloud Computing and Electric Vehicles. There's so some mention on investing in 5G related stuff.

I call it a hipster fund as it is now very trendy for fund management companies to come up with innovative technology funds after seeing how successful ARKK ETF was. ARKK is Ark Investment Funds run by rock star fund manager for 2020-2021 Kathy Woods. ARKK rose to fame after correctly predicting and investing to Tesla when it was at the beginning of its growth phase. 

While not stated in the prospectus what companies PeISITF invests in, I would expect it to invest in Tesla, NIO, BYD, XPENG for the electric vehicles segment and Palantir in the AI segment. These stocks are very hot now and people are pouring money and causing these companies to have very insane valuations. Having said that, disruptive (some call it innovative) technologies cannot be valued using the normal PE Warren Buffet's method of valuation, it is basically a bet into the future with future potential and earning.

This fund (PelSITF) is a Public Mutual e-Series fund so it just needs RM100 as minimum investment. Do note this is a high risk fund as it is very focused on a certain sector. I've put in RM500 of my money just for testing water (testing) as I've invested previously in an almost similar fund, PUBLIC e-ARTIFICIAL INTELLIGENCE TECHNOLOGY FUND (PeAITF). I find these 2 funds to be very very similar and can't really tell the difference between both. I believe (just guessing) PelSITF is focus on Shariah compliant aspect, disruptive technology (Tesla, Palantir) than normal technology companies (eg Microsoft, Google).

I find Public Mutual a bit late into the Innovative Technology Game but it's never too late to join. I also noticed the last few fund launches from Public Mutual were the e-Series funds which means Public Mutual is changing from traditional agent sales model into a fully online selling method, these funds are also millennials friendly by have low entry cost of only RM100 (previously was RM1,000).

Links

https://www.publicmutual.com.my/Menu/Campaigns-Launches/PeISITF