Should you invest in equity mutual funds focused on US tech stocks? 3 experts weigh in
mutual funds investing in shares of technology companies based in the US have delivered handsome returns for investors in the last few months. These funds have gained in excess of 40% in the last one year, which is among the best in equity MF schemes. Only a few equity categories such as the mid-cap and small-cap MFs have done better than these funds.
Their outperformance is largely due to the strong showing by global technology giants such as Meta (formerly Facebook), Nvidia, Microsoft and Alphabet (formerly Google) on the US bourses. These stocks are the best performers in the US markets having posted stellar returns due to their strong earnings growth amidst the ever-increasing potential that they hold in the fast-emerging space of artificial intelligence (AI). While the Nvidia scrip has zoomed 612% in the last one year, Meta has jumped by 226.3% during the timeframe.
The Microsoft scrip has vaulted 101.9% in the past one year, which was followed by Alphabet that gained 43.5% and Apple that gave 14.7% returns. Mirae Asset NYSE FANG+ETF, the top performer among equity MFs investing in overseas markets with a solid return of about 59% in the last one year, has more than 50% exposure to the shares of Meta, Nvidia, Alphabet, Apple and Microsoft. Mirae Asset NYSE FANG+ETF has outperformed the BSE-500 TRI (Total Returns Index) by nearly 22% in the one-year timeframe.
Motilal Oswal NASDAQ 100 ETF, another fund in the space, has emerged as a stellar performer by surging nearly 41% in the last one year. This fund’s exposure level to shares of US technology giants is quite similar to that of Mirae Asset NYSE FANG+ETF. While Kotak NASDAQ 100 Fund has posted about 40% gains in the past year, Navi NASDAQ 100 Fund has seen a
. Read more on livemint.com
