The new Invesco India Technology Fund promises to be quite different from others that focus largely on IT services companies. The new fund will allocate about 50% to IT services and devote the other half to invest in all the action happening across other tech verticals including e-commerce platforms in the consumer and fintech spaces, IT hardware/EMS, telecom and engineering R&D among others.
Hiten says consumer and fintech platforms have great runways ahead – the key is to be able to choose likely winners. He expects his new portfolio to have meaningful bets in the most promising names in this space.
While India may not have created world leading IT products companies, the key is that our IT services companies are enablers of most of these product-led disruptions happening globally. They play a vital role in implementation of new technologies and solutions – which makes them low risk plays on global tech disruption.
He believes that commencement of the US rate cut cycle brings soft landing back as the base case for US – which removes the big uncertainty that kept deal closures at abeyance. Expect lot more deal momentum in the coming months – which should get growth momentum back on track for Indian IT services companies.
IT hardware in India is right now more of assembly than manufacturing – but Hiten believes this is an important first step that will enable more value added manufacturing in India, which opens up another promising growth vertical for his new fund.