HDFC Mutual Fund launches HDFC Technology fund; here’s all you need to know

In a statement on Wednesday, HDFC AMC said that one of the key reasons to consider investing in the HDFC Technology Fund is the strategic positioning of the Indian IT landscape. With a track record as a consistent market share gainer across technology cycles, the Indian IT sector continues to demonstrate resilience and adaptability in an ever-evolving global marketplace. 

Good growth, better return ratios and dividend yield at reasonable valuations are some of the key characteristics that make this sector investible, according to the investment manager.

“We are excited about the launch of HDFC Technology Fund, which presents an interesting opportunity for investors. Increase in tech spending across the world and offshoring will continue to be a medium term tailwind for growth. India’s technology space is a vibrant one with a large universe of investable companies with healthy fundamentals,” said Balakumar B, Fund Manager and Senior Equity Analyst, HDFC Asset Management Company Limited.

‘’The scheme would invest across segments and market capitalization. The endeavour would be to follow a Bottom-up approach, focusing equally on Industry leaders and disruptors with competitive moats, and Market share gainers with potential for re-rating and higher compounding that are available at reasonable valuations,” added Balakumar B.

Core of the portfolio (> 80 per cent) will be invested in stocks in technology & technology related companies within the basic industries like IT services, software, consulting, and outsourcing, IT products and hardware, Internet companies and internet enabled services, Infrastructure providers and Telecommunications, Media and information services and Data and data solutions providers.

By targeting both established industry leaders and emerging disruptors with competitive advantages, the fund aims to capture potential growth opportunities and navigate the evolving tech landscape. The fund endeavours to encompass a wide spectrum of technology sectors.

This product is suitable for investors seeking to generate long-term capital appreciation and who invest predominantly in equity and equity-related instruments of technology and technology-related companies.

Updated: 30 Aug 2023, 09:45 PM IST