Edelweiss Asset Management launches Edelweiss US Technology Equity Fund in GIFT City, invests in JPMorgan US Technology Fund

Edelweiss Asset Management has launched the Edelweiss US Technology Equity Fund, an open-ended fund of funds through GIFT City, offering investors a dollar-denominated route to the JPMorgan Funds' US Technology Fund. The move comes as mutual fund companies face constraints on overseas investment limits.

The fund will invest predominantly in the JPMorgan master fund and is open to resident investors, family offices, institutions, NRIs and foreign nationals. The minimum investment is $5,000, while additional investments can be made with a minimum of $500.

The launch is significant for Edelweiss as its existing US Technology Equity Fund of Fund is among the overseas schemes affected by industry-wide investment limits. The fund house had earlier suspended fresh SIPs and STPs in seven overseas-focused schemes, including its US technology fund, as its available overseas investment headroom neared the industry threshold.


Also Read | Edelweiss Mutual Fund temporarily suspends SIPs and STPs in its 7 funds

The GIFT City structure provides Edelweiss with a separate route to offer overseas investment strategies. The fund house had earlier indicated plans to introduce feeder funds focused on US technology and emerging markets through the International Financial Services Centre.

The underlying JPMorgan US Technology Fund had around $11 billion in assets as of August 31. Its portfolio comprised 68 stocks, with a 72% active share against the Russell 1000 Equal Weight Technology Index. Its major holdings included Palo Alto Networks, Nvidia, Broadcom, Salesforce, CrowdStrike and Microsoft.

The strategy extends beyond large US technology companies, with exposure to semiconductors, software, cybersecurity and other technology-enabled businesses. Around 40% of the portfolio was positioned across the AI supply chain, including semiconductors, manufacturing, computing, networking, memory and power.

The JPMorgan fund delivered a 10.92% return in dollar terms year-to-date and 17.60% over one year as of August 31. This compared with 33.33% and 40.40%, respectively, for its technology benchmark. Against the Nasdaq-100, the fund's year-to-date return stood at 10.92%, compared with 16.66% for the index.

The Edelweiss GIFT City fund will invest 95-100% of its assets in the underlying fund and 0-5% in cash and cash equivalents. It will carry a 2% exit load for redemptions within 395 days and 1% for exits between 395 and 760 days, with no exit load thereafter.

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The launch adds another global investment option to GIFT City's growing retail fund ecosystem, as asset managers increasingly use the IFSC framework to offer overseas strategies facing capacity constraints within India's domestic mutual fund structure.

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