Edelweiss US Technology Equity Fund of Fund (FoF) is the flagship international mutual fund of Edelweiss AMC. It provides Indian investors with a gateway to invest in leading US technology companies through a Fund-of-Funds structure.
The scheme primarily invests in units of the JPMorgan: US Technology Fund, a globally renowned equity fund managed by J.P. Morgan Asset Management, which in turn holds stake in some of the world’s most dominant technology companies listed on the Russell 1000 Equal Weighted Technology Index.
Since its inception in March 2020, this fund has delivered strong risk-adjusted returns, comfortably outperforming its benchmark over multiple time horizons.
With a current AUM of approximately Rs 32.6 billion (bn) as of April 2026, the fund has established itself as one of India’s most popular vehicles for gaining exposure to global technology megatrends.
So, should you consider it?
Let’s look at all the details…
Key Fund Facts at a Glance
| Edelweiss US Technology Equity Fund of Fund | |
| Parameter | Details |
| Category | FoFs (Overseas) – International Equity |
| Fund Type | Open-Ended Fund of Funds |
| Launch Date | March 5, 2020 (Regular & Direct Plan) |
| Fund Managers | Bharat Lahoti & Bhavesh Jain |
| Benchmark Index | Russell 1000 Equal Weighted Technology Index |
| AUM (Apr 2026) | Rs 3,255.17 Crore |
| NAV – Direct Plan | Rs 37.04 (as of May 3, 2026) |
| Minimum SIP Investment | Rs 100 |
| Minimum Lump Sum | Rs 100 |
| Exit Load | 1% if redeemed within 90 days |
| Expense Ratio – Direct | 1.51% per annum |
| Expense Ratio – Regular | 1.61% per annum |
| Lock-in Period | None |
| Risk Rating | Very High |
Fund Structure: The FoF Architecture
As a Fund of Fund (FoF), the Edelweiss US Technology Equity Fund does not hold individual stocks directly. Instead, it channels investor money into units of the JPMorgan’s US Technology Fund.
This two-layer structure has several important implications for investors:
- Indian investors gain exposure to US technology equities without the need for LRS (Liberalised Remittance Scheme) or direct foreign brokerage account.
- Currency diversification is achieved naturally, as the underlying assets are in US dollars, while investment is made in Indian rupees.
- The underlying JPMorgan fund is actively managed by J.P. Morgan Asset Management, one of the world’s largest and most experienced asset managers.
- Being a FoF, the fund may carry a slightly higher overall cost structure as expenses are charged at both the FoF level and the underlying fund level.
- Investors benefit from the global research capabilities and active stock-selection expertise of the JPMorgan investment team.
The underlying fund invests primarily in technology companies featured in the Russell 1000 Equal Weighted Technology Index. This includes large-cap giants such as Apple Inc., Microsoft Corporation, NVIDIA Corporation, Alphabet Inc. (Google), Meta Platforms, and other technology leaders that are driving global digital transformation.
Portfolio Composition & Holdings
The primary holding of the Edelweiss US Technology Equity FoF is the JPM US Technology I (acc) USD unit class, which constitutes the most of the fund’s assets.
Additional minor allocations are maintained in liquid or cash equivalent instruments for liquidity management.
Data Source: Ace MF, factsheets
Performance Analysis
Speaking of its return performance, the fund has outperformed its benchmark across all periods. The recent 3-months performance especially has been extraordinary.
Data Source: Ace MF
Fund Management Team
Bharat Lahoti holds a B.E. in Electronics & Communication from Mumbai University and an MMS (Finance) from N.L. Dalmia Institute of Management Studies.
Prior to joining Edelweiss Asset Management as a Fund Manager, he was associated with D.E. Shaw India Software as a Senior Manager: Fundamental Research, accumulating approximately 9 years of experience in research roles within the financial services sector.
At EAML, he manages a substantial AUM corpus across multiple schemes, including the US Technology FoF.
Meanwhile, Bhavesh Jain holds an MMS (Finance) from Mumbai University. Prior to joining Edelweiss Mutual Fund, he was associated with Edelweiss Securities as an SGX Nifty Arbitrage Trader.
He has been co-managing the Edelweiss US Technology Equity FoF since its very inception and brings valuable experience in international fund management and derivative strategies.
Taxation
As an FoF (Overseas) scheme, the Edelweiss US Technology Equity Fund of Fund is treated as a non-equity oriented fund for tax purposes in India.
The following tax treatment applies:
| Holding Period | Gain Type | Tax Rate |
| Less than 2 years | Short-Term Capital Gains (STCG) | Added to income; taxed at applicable slab rate |
| More than 2 years | Long-Term Capital Gains (LTCG) | 12.5% without indexation benefit |
| Dividend Income | Income Distribution (IDCW) | Taxed at applicable income slab rate |
Following the Union Budget 2024 amendments, the holding period for long-term capital gains on FoF schemes was revised.
Investors should note that gains on units held for more than 2 years qualify for LTCG treatment at 12.5% without the indexation benefit. Units sold within 2 years are taxed as per the investor’s applicable income tax slab rate.
Key Risks to Consider
While the fund ranks high in terms of performance, here are some key risks to consider:
1) Market and Sector Concentration Risk
The fund is heavily concentrated in the US technology sector. Any significant correction in US tech stocks, driven by valuation concerns, rising interest rates, regulatory actions (especially antitrust proceedings), or macroeconomic slowdowns, can substantially impact the fund’s NAV.
2) Double Layered Expense Structure
As a Fund of Funds, investors bear expenses at two levels: the Edelweiss FoF level and the underlying JPMorgan fund level. This layered cost structure may reduce net returns compared to direct investment in Indian-domiciled technology funds.
3) Geopolitical and Regulatory Risk
US policy changes, trade restrictions, technology export controls, data privacy regulations, and antitrust scrutiny on Big Tech can affect the performance of the underlying portfolio.
4) Valuation Risk
US technology companies, particularly large-cap names, trade at elevated valuations. This premium valuation makes the portfolio more sensitive to earnings disappointments or changes in market sentiment toward growth stocks.
Competitive Positioning & Peer Comparison
Within the FoFs (Overseas) category in India, the Edelweiss US Technology Equity Fund is one of the most prominent offerings.
The fund has consistently outperformed the category average and its benchmark (Russell 1000 Equal Weighted Technology Index) over 1-year, 3-year, and 5-year periods.
Competing funds in the overseas technology space include schemes from Franklin Templeton, Mirae Asset, and Motilal Oswal, each offering access to Nasdaq 100 or global tech indices.
However, the Edelweiss fund’s advantage lies in its exclusive focus on the JPMorgan Funds – US Technology Fund, which is actively managed and not constrained to a passive index strategy.
Outlook
The US technology sector continues to be driven by powerful structural tailwinds including artificial intelligence (AI), cloud computing expansion, semiconductor innovation, digital transformation, and the growth of the gig and platform economy.
Companies such as NVIDIA, Microsoft, Alphabet, and Apple, which form the core of the underlying JPMorgan portfolio, are at the epicenter of the global AI revolution.
For Indian investors, this fund is one of the most accessible and structured ways to participate in the US technology growth story with the backing of J.P. Morgan Asset Management’s deep research expertise and active management capabilities.
Conclusion
The Edelweiss US Technology Equity Fund of Fund stands as a well-structured, globally diversified investment vehicle for Indian investors seeking long-term capital appreciation through exposure to the world’s most innovative technology companies.
Its partnership with J.P. Morgan Asset Management adds a layer of professional global investment expertise that is difficult to replicate through domestic fund offerings alone.
With its impressive track record since inception, this fund deserves serious consideration from investors with a long-term horizon, a high risk tolerance, and a conviction in the enduring growth of the US technology sector.
Happy investing.
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