Nvidia CEO's 'Chinese Spy' Row: Nvidia Stock Crash: Nvidia is no longer just a Wall Street story. Its latest stock market crash could also affect Indian investors who may not even realise they own a piece of the American chipmaker through their mutual funds.

The world's most valuable chipmaker is staring at a potential $470 billion erosion in market value over two trading sessions. The sell-off has brought its Indian mutual fund investors into focus, with several schemes holding Nvidia shares, including funds that invest in Indian stocks.

Which Indian Mutual Funds Hold Nvidia Shares?

According to a report NDTV Profit, several Indian mutual fund schemes have exposure to Nvidia.

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Other schemes with exposure include Mirae Asset's NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF, ICICI Prudential Nasdaq 100 Index Fund, DSP Value Fund and DSP Multi Asset Allocation Fund.

Why Is Nvidia Crashing?

Nvidia's troubles go beyond the usual stock market volatility. The company has been facing questions over its leadership after reports about CEO Jensen Huang's alleged links with a Singapore-based businesswoman suspected of having connections with Chinese intelligence. Questions have also been raised about the movement of Nvidia chips to Chinese firms.

Nvidia's board has appointed an independent investigator to examine the allegations. The company has said it has no reason to believe that US national security or its business secrets have been compromised.

Nvidia shares closed at $168.89 on November 10, down 5.5 per cent from the previous session. The stock had closed at $186.64 on November 6.

What Does This Mean For Mutual Fund Investors?

A fund investing in US technology companies may hold Nvidia directly. But even a diversified fund can own the chipmaker if it invests in companies listed overseas or follows an index containing Nvidia. This does not mean every investor holding these schemes will suffer equally.

The impact depends on how much Nvidia accounts for the fund's total investments. A fund with a small Nvidia allocation may see a limited impact, while one heavily invested in US technology stocks could face greater volatility.

"The important distinction is between exposure and concentration. Owning Nvidia through a diversified portfolio is very different from having a large part of your money riding on one technology company," a stock market expert told NDTV.