Edelweiss US Technology FoF: How Indian investors can access NVIDIA, Microsoft and other tech giants

As artificial intelligence, cloud computing and semiconductor innovation continue to reshape global markets, Indian investors are increasingly looking beyond domestic equities to participate in international growth opportunities. One fund that has emerged as a popular gateway to the US technology sector is the Edelweiss US Technology Equity Fund of Fund (FoF), an overseas-focused mutual fund that invests in some of the world's largest technology companies through a globally managed portfolio.

Launched in March 2020, the fund has grown into one of India's prominent international equity offerings, with assets under management (AUM) of around ₹3,255 crore as of April 2026. The scheme is designed for investors seeking exposure to global technology leaders without opening overseas brokerage accounts or using the Liberalised Remittance Scheme (LRS).

A fund around US technology

Unlike traditional equity mutual funds, the Edelweiss US Technology Equity Fund does not directly buy shares of technology companies. Instead, it follows a Fund of Fund structure, investing predominantly in the JPMorgan US Technology Fund, which is managed by J.P. Morgan Asset Management.

Through this structure, Indian investors gain exposure to leading US technology companies such as Apple, Microsoft, NVIDIA, Alphabet and Meta Platforms, among others. These companies are among the biggest beneficiaries of trends such as artificial intelligence, digital transformation, cloud adoption and semiconductor development.

The fund's benchmark is the Russell 1000 Equal Weighted Technology Index, which tracks major technology businesses listed in the United States.

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Performance since launch

The fund has built a strong track record since inception. According to fund data, it has outperformed its benchmark across multiple time periods and has benefited from the rapid growth of the global technology sector.

Value Research data shows the direct plan's NAV stood at ₹43.01 as of May 29, 2026, compared with a launch NAV of under ₹18 in 2020. The fund reported a return of 24.25% in 2026, following gains of 25.57% in 2025 and 29.79% in 2024.

The portfolio remains overwhelmingly invested in equities, with around 97% of assets allocated to the underlying JPMorgan technology fund.

Who manages the fund?

The scheme is managed by Bharat Lahoti and Bhavesh Jain.

Lahoti previously worked at D.E. Shaw India Software in fundamental research roles before joining Edelweiss Asset Management. Jain, meanwhile, has been associated with the fund since its launch and brings experience in international fund management and derivatives.

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Risks involved

While the fund offers access to some of the world's most influential technology companies, it comes with a very high risk rating.

The biggest risk is sector concentration. Since the portfolio is heavily tilted towards technology stocks, any sharp correction in US tech valuations could significantly affect returns. Investors are also exposed to regulatory developments, trade restrictions, data privacy rules and broader market volatility affecting global technology firms.

Another consideration is the dual-layer expense structure. Since investors pay expenses at both the FoF level and the underlying fund level, overall costs can be higher than those of some domestic equity funds.

Taxation and investor suitability

For tax purposes, the scheme is treated as a non-equity fund in India. Capital gains on investments held for more than two years are taxed at 12.5% without indexation, while gains on units sold within two years are taxed according to the investor's income-tax slab.

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With a minimum SIP and lump-sum investment requirement of just ₹100, the fund offers retail investors an accessible route to participate in the long-term growth story of US technology companies. However, given its concentrated exposure and high volatility, it is generally better suited to investors with a long investment horizon and a high risk appetite.