Edelweiss AMC launches new fund investing in domestic and global IT companies

Interestingly, the Nifty IT PE vs Nasdaq PE is currently trading at a discount of -20% versus the long-term average of -12%. 2024 may see a reverse trend of 2022. Rate hikes in 2022 caused a fall in the IT index, and now with the Fed expected to cut rates, the IT index may see an uptrend. The fund house is looking to capitalise on this trend.

“In an era where technology is integral to our lives, we're thrilled to unveil our latest fund in the technology space. This offering provides investors an opportunity to tap into dynamic Indian and US-based tech stocks in a unique and tax-efficient manner. Our proven success in running a US Technology Fund of Fund in collaboration with JP Morgan underscores our commitment to providing diverse investment avenues and navigating the ever-evolving tech landscape,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.

Trideep Bhattacharya, President & CIO-Equities, Edelweiss Mutual Fund, who will manage this fund along with two other fund managers, said, “We anticipate a substantial increase in technology penetration across all industries globally over the next decade. Our approach to participating in this trend will be through our Edelweiss Technology Fund, where we aim to take meaningful exposure to global industry leaders spanning various sub-sectors of technology along with Indian IT services and new-age tech companies."

The fund boasts a well-balanced mix of domestic and global IT stocks, but this is not the only fund of this kind. Investment advisors always ask retail investors to opt for a scheme with a proven track record.