Bottom-fishing: Mutual funds launch tech funds as IT sector bleeds

The IT sector funds have returned a paltry 5.06% in the last year.

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Mutual fund houses are often criticised for launching schemes that track themes and sectors that have done better in the recent past.

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Such a strategy attracts significant inflows, as investors are willing to write cheques based on past performance.

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In the last year ended August 21, 2023, technology sector funds have given 5.06 percent returns compared to 18.12 percent given by multicap funds, as per Value Research.

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the new fund offers (NFOs) of Bandhan Nifty IT Index Fund and Quant Teck Fund are open for subscription,

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while the NFO of HDFC Technology Fund (HTF) will open on August 25, 2023.

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while the NFO of HDFC Technology Fund (HTF) will open on August 25, 2023.

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Axis Nifty IT Index Fund and DSP Nifty IT ETF reopened for continuous subscription last month

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Nifty India Digital is a more diversified index consisting of 30 companies that represent the digital theme. The Tata Nifty India Digital ETF tracks this index.

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