Fidelity Fund adds India exposure after US midterm results: Report

A fund manager at Fidelity International is using the recent weakness in technology stocks as an opportunity to increase exposure to the sector, while also raising allocations to Indian equities to diversify his portfolio. The strategy comes amid market volatility triggered by uncertainty surrounding the outcome of the US midterm elections.

George Efstathopoulos, a multi-asset portfolio manager at Fidelity International, told Bloomberg that he is reducing holdings in defensive sectors such as utilities and redirecting the proceeds towards technology stocks across Asia and other markets. He is also increasing his exposure to India as part of a broader diversification strategy.

According to Efstathopoulos, the political uncertainty in the US has intensified the gap between market valuations and underlying business fundamentals, creating opportunities for investors to accumulate quality stocks at lower prices, the Bloomberg report said. He oversees approximately $3 billion in assets across Fidelity International's Growth & Income funds.

One of the schemes under his management, the Fidelity Funds - Global Multi Asset Growth & Income Fund, has delivered returns of around 9% so far this year, placing it in the 80th percentile among comparable funds, according to Bloomberg data.

His investment approach reflects a broader sentiment among investors who remain optimistic about the earnings outlook for artificial intelligence-related companies despite concerns over elevated technology spending. At the same time, markets such as India are attracting interest as potential diversification destinations, given their relatively lower exposure to disruptions across certain technology segments.

Global markets reacted sharply on Wednesday after Democrats secured majorities in both chambers of the US Congress, prompting investors to reassess the potential implications for President Donald Trump's policy agenda. Nasdaq 100 futures dropped as much as 2.4% before recovering some of their losses as bargain hunters stepped in.

Within the technology space, Efstathopoulos said he remains particularly positive on memory-chip companies and Nasdaq-listed stocks. He pointed to robust earnings reported by major hyperscalers, the favourable outlook for the memory semiconductor cycle and relatively attractive valuations as key reasons supporting his bullish stance.