Edelweiss Technology Fund

The Edelweiss Technology Fund has delivered a 1-year SIP XIRR of 3.83%, which is significantly below the category average of 14.1% for the same period. Over the long term, the fund's CAGR has consistently outperformed the NIFTY 50 benchmark, with a 10-year CAGR of 3.09% versus 0.84% for the benchmark, though the absolute returns remain modest. The fund's 1-year return of 3.83% is notably lower than its 1-year rolling return of 5.62%, indicating recent underperformance in SIP terms.

The fund exhibits low volatility with a beta of 0.63 against the NIFTY 50 over 1 year, and a maximum drawdown of only -0.26%, which is very shallow. However, the recovery from the maximum drawdown took 479 days, indicating prolonged periods of underperformance. The Calmar ratio of 0.21 for 1 year suggests modest risk-adjusted returns, as the return relative to the maximum drawdown is low.

The fund is a sectoral/thematic fund focused on technology, which inherently leads to high sector concentration and limited diversification across industries. While specific top holdings are not provided, the thematic nature implies significant exposure to technology stocks, which can be volatile and cyclical. Investors should be aware that this concentration increases sector-specific risk compared to diversified equity funds.

The fund's 1-year XIRR of 3.83% is far below the category average of 14.1%, placing it in the bottom quartile of its peers. Over longer horizons, the fund's CAGR has been positive but modest, and it has underperformed the category averages across all time frames, with the gap widening in recent years. The fund's performance consistency is poor, as evidenced by calendar year returns ranging from 1.81% in 2025 to 23.69% in 2024, indicating high variability.

This fund is suitable for investors with a high risk tolerance and a long-term investment horizon of at least 5-7 years, given the volatility of the technology sector. It is not appropriate for conservative investors or those seeking stable income, as the fund's returns are highly dependent on tech market cycles. Investors should be prepared for significant drawdowns and periods of underperformance relative to the broader market and category peers.

• Consistent positive alpha over the benchmark across all time periods, with 1-year alpha of 12.14% and 3-year alpha of 6.81%.
• Lower downside capture (59.75% over 1 year) compared to upside capture (77.66%), indicating the fund loses less in down markets than it gains in up markets.
• Low expense ratio of 0.64% for a direct plan, which is competitive within the sectoral fund category.

• Significant underperformance relative to the category average, with 1-year XIRR of 3.83% versus 14.1% for peers.
• Prolonged recovery period of 479 days from the maximum drawdown, indicating that investors may face extended periods of negative or flat returns.