Mutual funds launch tech funds as IT sector bleeds

Mutual fund houses are often criticised for launching schemes that track themes and sectors that have done better in the recent past. Such a strategy attracts significant inflows, as investors are willing to write cheques based on past performance. However, this time, mutual fund houses are launching schemes focusing on the information technology (IT) sector, which is not in the best of health. In the last year ended August 21, 2023, technology sector funds have given 5.06 percent returns compared to 18.12 percent given by multicap funds, as per Value Research.