Mutual funds reap massive gains from Nvidia's market surge: Top funds benefiting from the chipmaker's meteoric rise

Chipmaker Nvidia has become the world's most valuable company, reaching a staggering market capitalisation of $3.34 trillion. This incredible run has fueled the fortunes of domestic mutual funds that had the foresight to invest in Nvidia early on. Two Motilal Oswal funds, in particular, have reaped significant rewards by holding Nvidia in their portfolios. Let’s explore how much these funds have benefited from Nvidia's meteoric rise.

Following are the top mutual funds invested in Nvidia stock

Mirae Asset NYSE FANG+ ETF

This fund focused on international tech giants and had an 11.5% holding in Nvidia as of May 2024, slightly above its average holding of 10.6%.

The fund strongly focuses on technology, with 80.45% of its holdings in this sector, compared to the category average of 46.98%. It also has significant investments in consumer discretionary stocks, comprising 19.51% of its holdings, whereas the category average for this sector is 14.18%. Since its inception, the fund has achieved a compound annual growth rate (CAGR) of 24.88%.

Mirae Asset S&P 500 Top 50 ETF

Another international fund targets the top 50 companies in the S&P 500. It held 10.5% of Nvidia in May 2024, which is significantly higher than its average holding of 4.2%.

The fund has a compound annual growth rate (CAGR) of 17.11% since its inception. Its top three sector holdings are Technology at 58.43%, Consumer Discretionary at 13.35%, and Healthcare at 11.14%. In comparison, the category averages for these sectors are 46.98%, 14.18%, and 7.42%, respectively. The fund also invests in Consumer Staples, Financial, Energy & Utilities, Materials, and an Unclassified Sector.

ICICI Prudential NASDAQ 100 Index

This fund tracks the NASDAQ 100 Index and had a 7.5% holding in Nvidia as of May 2024, up from its average of 4.4%.

The fund's holdings are primarily in the technology sector, making up 68.13% of its portfolio, compared to the category's 46.98%. The next largest sectors are consumer discretionary at 15.16% (category 14.18%) and healthcare at 5.94% (category 7.42%). The fund has achieved a compound annual growth rate (CAGR) of 13.96% since its inception, which is lower than its benchmark of 19.45%.

Motilal Oswal NASDAQ 100 ETF

With an emphasis on the NASDAQ 100, this fund had a notable 7.5% holding in Nvidia in May 2024, significantly higher than its average of 1.7%.

The fund has a significant portion of its investments in the technology sector, making up 68.11% of its holdings, compared to the category average of 46.98%. The next largest investments are in the consumer discretionary sector at 15.16% (category average: 14.18%) and the healthcare sector at 5.95% (category average: 7.42%). Since its inception, the fund has achieved a compound annual growth rate (CAGR) of 23.05%, outperforming its benchmark, which has a CAGR of 14.21%.

Motilal Oswal S&P 500 Index

This international fund tracks the S&P 500 and held 6.1% of Nvidia in May 2024, compared to its average of 1.9%.

The fund has notable sector-wise holdings, with the top three sectors being Technology at 41.37%, Healthcare at 11.79%, and Consumer Discretionary at 11.41%. Compared to its category averages, the fund has a higher allocation in Technology but lower in Consumer Discretionary. Overall, the fund has achieved a compound annual growth rate (CAGR) of 19.42% since its inception, outperforming its benchmark, which has a CAGR of 13.85%.

Axis Growth Opportunities

A large and mid-cap fund, it had a 1.1% holding in Nvidia in May 2024, close to its average of 1%.

The fund has a compound annual growth rate (CAGR) of 22.12% since its inception, outperforming its benchmark, which has a CAGR of 16.83%. The fund's holdings are diversified across several sectors, with the top three being Industrials (16.89% of the fund compared to 15.86% for the category), Financial (16.18% vs. 24.09%), and Technology (14.98% vs. 10.72%). Other notable sectors include Consumer Discretionary, Healthcare, and Energy & Utilities. The fund also has smaller allocations in Materials, Consumer Staples, Real Estate, Diversified, and Unclassified sectors.

Axis Innovation

This thematic fund focuses on innovative companies and had a 1.1% holding in Nvidia in May 2024, slightly above its average of 0.7%.

The fund has a diverse portfolio with the top three sectors being Technology, Financial, and Consumer Discretionary, which comprise 25.14%, 15.42%, and 13.13% of the fund respectively. Compared to its category averages, the fund is more heavily invested in the Technology and Financial sectors but less in Consumer Discretionary. Since its inception, the fund has achieved a compound annual growth rate (CAGR) of 17.49%, outperforming its benchmark, which stands at 12.81%.

Nvidia's unprecedented growth has underscored the value of strategic investments in leading tech companies. Mutual funds with significant Nvidia holdings, particularly those from Motilal Oswal, have seen remarkable returns. This success story exemplifies the potential benefits of foresight and targeted investment strategies in rapidly advancing sectors like technology.