TECHNOLOGY SECTOR FUNDS Stay invested if you have risk appetite, at least 7-yr horizon

Technology sector funds have faced significant pressure in recent months. Over the three months ended March 19, they have declined 18.6 per cent on average, the steepest fall among equity funds, according to Value Research.

- SARBAJEET K SEN

"Near-term uncertainties stemming from muted global growth outlook, tariffs, and geopolitical tensions have impacted the sector," said Shibani Kurian, senior executive vice president and head of equity research, Kotak Mutual Fund.

Weak global cues Many Indian information technology (IT) firms rely heavily on the US for revenue. "The macro environment in the US has clearly deteriorated. Factors like increased uncertainty vis-à-vis US tariffs, cuts in government spending, and reduced probability of rate cuts have delayed the recovery in discretionary spending to the financial year 2025-26. There are also concerns regarding US growth," said Mahesh Patil, chief investment officer, Aditya Birla Sun Life Asset Management Company (AMC).

The Nasdaq 100 index, which has high exposure to technology companies, has been volatile. This has dampened investor sentiment and, in turn, weighed on Indian tech stocks.