That the software sector is struggling is old news. One mutual fund house expanded the scope of its IT fund, while another plans to merge its technology fund with a diversified fund.
Earlier this year, equity funds had still seen some promise in the sector. A good number of largecap funds were still overweight on the software sector, compared with the Nifty100 and Nifty500 indices.
A steady and foreseeable growth, lower valuations, and expectation that companies were adapting strategies to cope with the changing dynamics held funds’ attention.
