From Caution To Conviction: Why IT Is Back On Fund Managers’ Radar

After the sharp market correction, opportunities are emerging across sectors, with technology standing out as a key beneficiary. The fund manager highlighted a clear shift in stance on IT, moving from an underweight position earlier in the year to an overweight allocation now. While near-term revenue growth expectations remain muted, the comfort comes from strong balance sheets, resilient business models, and robust free cash flow generation. Even with low single-digit growth, IT companies are offering healthy dividend yields and attractive valuations, making the risk-reward favourable. The gradual increase in exposure reflects growing confidence that downside risks are priced in, while long-term fundamentals remain intact. In the current market environment, cash flows and valuation discipline are driving renewed conviction in the technology space.