A unique fund with a contra bet on Indian IT and global tech exposure: Radhika Gupta on Edelweiss Technology Fund

The technology sector is becoming one of the most popular sectors among investors, from artificial intelligence and cloud computing, to digital payments and online services, with many investors looking to benefit from both in India and abroad. However, getting exposure to both Indian IT companies and global technology giants through a single investment option is often not easy.

According to Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, the Edelweiss Technology Fund offers a unique way for investors to participate in opportunities across both Indian and global technology companies.

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She posted on her social media platform X that, “A very unique fund : a contra play in Indian IT plus 20-30% global tech exposure. The only blended tech fund. Note: This is Edelweiss Tech Fund, not Edel US Tech Fund. “


Gupta described the Edelweiss Technology Fund as a unique offering in the technology fund category. She said the fund combines a contra play on Indian IT companies with an allocation of around 20-30% to global technology stocks, making it the only blended technology fund of its kind.

The Indian IT companies have gone through a challenging phase over the past few years due to concerns around slowing global demand, weaker technology spending, and uncertainty in key overseas markets. However, these challenges have also created opportunities for investors who believe in the long-term growth potential of the sector.

Gupta said the fund takes a contrarian view on Indian IT by investing in companies that could benefit when demand and spending cycles improve. At the same time, the fund provides exposure to global technology leaders that are driving innovation in areas such as artificial intelligence, semiconductors, cloud computing, software, and digital platforms.

According to Gupta, what differentiates the Edelweiss Technology Fund is its blended approach. While many technology-focused funds offer either domestic technology exposure or international technology exposure, this fund combines both within a single portfolio.

She also clarified that investors should not confuse the Edelweiss Technology Fund with the Edelweiss US Technology Equity Fund. While the latter focuses primarily on overseas technology companies, the Edelweiss Technology Fund follows a broader strategy that includes both Indian IT stocks and global technology businesses.

Gupta believes this combination offers investors a diversified way to gain exposure to the technology theme without having to choose between Indian and global opportunities.

For investors looking to participate in the long-term growth of the technology sector, the Edelweiss Technology Fund offers a differentiated proposition through its unique blend of Indian IT and global technology exposure, according to Gupta.

According to data on ACE MF, the primary investment objective of Edelweiss Technology Fund is to provide long-term capital appreciation by investing predominantly in equity and equity related securities of technology & technology related companies.

The fund had the highest allocation in Bharti Airtel of around 9.51%, followed by Infosys where the allocation was 6.68%. Launched on March 5, 2024, the fund has delivered 6.49% since its inception and in the last three months, it has delivered 10.78% returns.

The performance is benchmarked against BSE Teck Index - TRI and is managed by Sumanata Khan.

Also Read | Rather than picking IPOs every month, let a fund do it for you: Radhika Gupta on Edelweiss Recently Listed IPO Fund

In her last post, Gupta talked about Edelweiss Recently Listed IPO on which she said that rather than figuring out which IPO to invest in every month, let a fund do it for you!

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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