The global technology space – what’s happening and what can you do?

News of large companies laying off their employees, especially in the technology space globally, has been dominating news headlines for a few weeks.

This comes after a few quarters of strong growth seen by such companies, primarily as the COVID-19 pandemic had led to an increased usage of digital mediums.

While trimming the workforce is definitely not a positive indication of growth prospects for these companies, here’s something to consider.

Most of these companies are focusing on cost reduction and aiming to make their balance sheets stronger at a time their economy is not in the best of health.

Their stock prices seem to have borne the brunt of this slowdown, and this, in turn, has been reflected in the recent performance of the Nasdaq-100 index, where it has fallen about 33% in 2022.^

 

Should you consider investing in these companies now?

The valuations have corrected significantly.

And while prices may move up or down depending on the market and economic conditions going ahead, we may look back and find today’s level as a decent opportunity to invest.

Investing in these companies can also help in diversification across geographies.

 

How can you do it?

By considering investing in the Kotak NASDAQ 100 Fund of Fund.

 

So what’s in it for investors?

The Kotak NASDAQ 100 Fund of Fund gives you:

• A chance to invest in some of the leading technology companies of the world, including, Meta Platforms, Apple, Amazon, Netflix, Alphabet Inc, Tesla, and Microsoft, among others.*
• The opportunity to invest across borders, in companies not listed in India
• The benefits of diversification

Do keep your asset allocation in mind while investing, and take the help of a professional financial advisor.

 

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^Source: Investing.com, Data as on 31/12/2022

Past performance may or may not be sustained in the future.

*Source: Nasdaq.com, https://www.ishares.com/uk/individual/en/products/253741/ishares-nasdaq-100-ucits-etf, Data as on 30/12/2022.

Kotak NASDAQ 100 Fund of Fund (An open ended fund of fund investing in units of overseas ETF's and/or Index Fund based on NASDAQ 100 Index)

For a detailed portfolio and related disclosures for the scheme/underlying scheme, please refer to https://www.kotakmf.com/Information/forms-and-downloads/ https://www.ishares.com/uk/individual/en/products/253741/ishares-nasdaq-100-ucits-etf. The portfolio and its composition is subject to change, and the same position may or may not be sustained in future. The fund manager may make changes in the Scheme as per different market conditions and in the best interest of the investors. To view the latest complete performance details of the Scheme, kindly refer to the factsheet on our website https://www.kotakmf.com/Information/forms-and-downloads.

The information contained in this article is extracted from different public sources/KMAMC internal research. All reasonable care has been taken to ensure that the information contained herein is not misleading or untrue at the time of publication. This is for the information of the person to whom it is provided without any liability whatsoever on the part of Kotak Mahindra Asset Management Co Ltd or any associated companies or any employee thereof.  The article may include statements/opinions which contain words or phrases such as "will", "believe", "expect" and similar expressions or variations of such expressions, that are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with the statements mentioned with respect to but not limited to exposure to market risks, general and exposure to market risks, general economic and political conditions in India and other countries globally, which have/ may have an impact on investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. This is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The distribution of it, in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this material are required to inform themselves about, and to observe, any such restrictions. The scheme is not a guaranteed or assured return scheme. KMAMC/KMMF is not forecasting any future performance.

Kotak Nasdaq 100 Fund of Fund is managed by Mr. Abhishek Bisen, and Mr. Arjun Khanna. Click to view details of funds managed by them.