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Home >Money >Personal Finance >‘Opportunity open’, tweets Radhika Gupta as Edelweiss US Tech Fund falls 7.40%

MUMBAI: Radhika Gupta, CEO, Edelweiss Mutual Fund, suggested that investors should buy into a correction in Edelweiss AMC’s US Technology Fund in a tweet on Tuesday. The scheme invests in tech stocks in the US indirectly by feeding into the JP Morgan US Technology Fund. The JP Morgan fund counts Alphabet, Facebook and Advanced Micro Devices Inc as its top three holdings.

“A popular fund of Edelweiss MF where NAVs have gone to 2x in a short period and now corrected opening an opportunity", Gupta tweeted, posting a link to the US Tech Fund. The fund was launched in March 2020 and doubled investors’ money by February 2021. However since then the fund has corrected sharply with its NAV falling from 20.10 on 16th February to 17.56 on 28th May, according to data from Value Research.

Edelweiss US Tech Fund has Rs1,335 crore in assets. Following the recent correction, one-year return has come down to 50.76%, lower than roughly 60% delivered by the Nifty. However over longer time horizons, US tech stocks have outperformed the Indian market.

The Motilal Oswal Nasdaq 100 which tracks the tech heavy US NASDAQ Index has delivered 24.70% CAGR over the last 10 years compared to around 12% on the Nifty 50. The gradual fall of the rupee against the dollar enhances the returns of such international funds. These funds are taxed on par with debt mutual funds - at slab rate for less than three-year holding period and at 20% with indexation for longer holding periods.

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