Nascent recovery in IT funds: Invest systematically, hold for long term

Experts suggest holding them for long term, say tech stocks may take a hit if economic conditions in US or Europe worsen

After prolonged stagnation, technology sector funds now appear to be in recovery mode, in tandem with the global markets. The active (direct) plans of these funds have given a category average return of 5.4 per cent year-to-date, surpassing the 2.7 per cent return of the Nifty50 and the 1.5 per cent return of the Nifty IT index. Altogether 16 (active and passive) funds in this category manage assets worth Rs 25,796 crore (April 30, 2023).

Promising in the long term

Experts say the long-term outlook for the Indian information technology (IT) sector remains promising, notwithstanding the near-term headwinds. Says Vaibhav