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HDFC Asset Management Co. Ltd (HDFC AMC), investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses has announced the launch of HDFC Technology Fund. This open-ended equity scheme intends to invest in technology and technology related companies with a bottom-up approach for stock selection. It aims to embrace the techvolution and invest in the potential of the future. The captioned NFO opened on August 25, 2023 and closes on September 05, 2023

HDFC Mutual Fund recognizes that India's journey towards digitalization presents an extensive runway for growth, which is part of a global trend of increasing tech intensity across markets and industries. As the nation progresses towards a digitally empowered future, the fund stands to benefit from the opportunities presented by this transformational shift. One of the key reasons to consider investing in the HDFC Technology Fund is the strategic positioning of the Indian IT landscape. With an impressive 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. 

Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited said “We are delighted to introduce the HDFC Technology Fund to our investors. At HDFC Mutual Fund, we have always endeavoured to be a one-stop solution for varied financial goals and have delivered wide array of opportunities through our diverse product bouquet. HDFC Technology Fund becomes the latest addition to our diverse set of offerings.”

The scheme will be managed by Mr. Balakumar B, Fund Manager and Senior Equity Analyst, HDFC Asset Management Company Limited who collectively has over 12 years of experience, said “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. 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.”

Core of the portfolio (> 80%) 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.

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