Technology-based mutual funds lost up to 18% in 2025. Time favourable to allocate more?
mutual funds down by up to 18% in the current calendar year so far, amid all the challenges, a market expert recommends it to be a reasonable entry point for long-term investors and it’s prudent to adopt a staggered approach via SIPs or STPs rather than lump sum investments.
“Despite near-term challenges, the current correction offers a reasonable entry point for long-term investors. The technology sector continues to benefit from structural trends like digital transformation and AI adoption. However, given ongoing global uncertainties, it’s prudent to adopt a staggered approach via SIPs or STPs rather than lump sum investments,” Sagar Shinde, VP of Research at Fisdom recommends.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-119895507»>While recommending to make investment in these funds, the expert asks investors to moderate the return expectations and cap exposure in these funds around 10-15% of the portfolio.
“Also, investors should moderate their return expectations and cap tech fund exposure to a satellite portion (around 10–15% of the portfolio). Importantly, most diversified equity funds already have meaningful exposure to technology stocks—especially large-cap IT—so if you’re already invested heavily in diversified funds, a separate allocation to tech-focused funds may not be necessary,” Shinde further recommended.
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In the current calendar year so far,
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