Bet on IT funds to gain from digitisation, generative AI adoption
Technology funds are the worst-performing equity fund category over the past three months, declining 10.2 per cent. While they are up 25.9 per cent over the past year (according to Morningstar.com data), they are laggards compared to other sectors even over this horizon. Fund managers, however, believe the prospects of these funds remain sound over the medium to long term.
Recovery may be delayed
Companies spent far above average on technology during Covid-19, boosting the earnings of technology companies. Spending has been normalising since then.