Fund of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
Artificial Intelligence is no longer just a futuristic concept. It has become a powerful enabler across industries, from cloud computing and Semiconductors to digital advertising, automation, enterprise software and electric mobility. Naturally, investor interest in the AI and technology theme has increased sharply. Many of the most established global technology companies are based in the U.S., including Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, Tesla, AMD, Broadcom, Cisco, Intel, Adobe and Oracle. For Indian investors who want exposure to this global technology ecosystem along with geographical diversification, Edelweiss US Technology Equity Fund of Fund can be considered one such route.

The fund has also shown relative strength during weak phases due to its geographically diversified portfolio. Over six months, it declined 5.94 per cent, while the category average fell 16.93 per cent, protecting the downside by 10.99 percentage points.

Over one year, it delivered 2.80 per cent against the category’s -14.49 per cent, outperforming by 17.29 percentage points. Over two years, it generated 6.44 per cent versus the category average of -1.50 per cent.

The portfolio is clearly tilted towards the technology theme, with 44.40 per cent allocation to the technology sector. This makes the fund a focused play on the digital and AI-led transformation theme. Capital Goods forms the second-largest sector exposure at 19.32 per cent, which may benefit from automation, infrastructure and industrial technology trends.

The sector mix indicates that while technology remains the core driver, the fund also has exposure to adjacent growth areas linked to innovation, connectivity and industrial transformation.

Key holdings include Bharti Airtel at 10.33 per cent, Infosys at 7.16 per cent, NVIDIA at 6.39 per cent, Tech Mahindra at 6.04 per cent and Apple at 5.37 per cent. The fund suits investors with a higher risk appetite and a long-term horizon, and may be considered as a satellite allocation for AI and technology exposure.

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