‘Open opportunity’, tweets Radhika Gupta as Edelweiss US Tech fund drops 7.40%
MUMBAI: Radhika Gupta, CEO of Edelweiss Mutual Fund, suggested investors should buy a fix from Edelweiss AMC’s U.S. tech fund in a tweet on Tuesday. The program indirectly invests in technology stocks in the United States by funding the JP Morgan US Technology Fund. The JP Morgan fund counts Alphabet, Facebook and Advanced Micro Devices Inc among its top three holdings.
“A popular Edelweiss MF fund where NAVs went to 2x in a short time and now corrected opening up an opportunity,” Gupta tweeted, posting a link to the US Tech Fund. The fund was launched in March 2020 and doubled investor money from February 2021. However, since then the fund has corrected sharply, with its net asset value falling from 20.10 on February 16 to 17.56 on May 28, according to data from Value Research.
Edelweiss US Tech Fund has Rs 1,335 crore in assets. Following the recent correction, the one-year return fell to 50.76%, below the roughly 60% provided by Nifty. Over the longer term, however, US tech stocks have outperformed the Indian market.
The Motilal Oswal Nasdaq 100, which tracks the US NASDAQ index, has generated a CAGR of 24.70% over the past 10 years, compared to around 12% for the Nifty 50. The gradual fall of the rupee against the dollar improves the returns of these international funds. These funds are taxed in the same way as debt mutual funds – at the floor rate for holding periods of less than three years and at 20% with indexation for longer holding periods.
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