Nasdaq Selloff Impacts Indian Mutual Funds Tracking US Tech and AI
What happened
The Nasdaq Composite fell 2.86 percent on October 30 amid concerns regarding heavy AI spending and whether technology companies can generate sufficient returns on those investments. This selloff affected Indian overseas mutual funds that track Nasdaq-linked themes, with several funds losing more than 7 percent over the past month, and some recording double-digit declines. Motilal Oswal Nasdaq 100 FoF declined 11.30 percent over one month, while Edelweiss US Technology Equity FoF fell 10.75 percent.
From moneycontrol.com
Why it matters
The decline highlights the vulnerability of Indian investors in US technology and AI sectors, as over 80 percent of overseas equity funds were in negative territory based on one-month figures. The volatility reflects investor concerns about the profitability of large-scale technology investments.
From moneycontrol.com
Who's involved
- NasdaqAmerican stock exchange whose decline triggered the fund losses.
- Motilal OswalIndian firm whose Nasdaq 100 FoF experienced a significant one-month decline.
- InvescoUS investment management company that provides index-tracking ETFs reliant on Nasdaq.
- NAVICompany whose Nasdaq-linked funds are susceptible to the selloff.
- AxisJapanese business whose Nasdaq-linked funds saw a direct market price decline.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- InvescoSpeculative
Invesco might see a direct market price decline in its Nasdaq-linked funds.
- NAVISpeculative
NAVI might experience a direct loss of capital due to the Nasdaq selloff affecting its funds.
- AxisSpeculative
Axis might face a direct market price decline in its Nasdaq-linked funds.
- NvidiaSpeculative
Nvidia might see its market price decline as a core component of the Nasdaq index.
- MicrosoftSpeculative
Microsoft might see its market price decline as a major listed component of the Nasdaq index.
- MetaSpeculative
Meta might see its market price decline as a major tech player exposed to the sector-wide decline.
- AmazonSpeculative
Amazon might see its market price decline as a major constituent of the Nasdaq index.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- BlackRock may benefit if investors shift capital from declining Nasdaq-linked fundsBlackRock may benefit if investors shift capital from declining Nasdaq-linked fundsPossible
- Fifth Third Bancorp's ETF holdings may decline after Nasdaq selloffFifth Third Bancorp's ETF holdings may decline following Nasdaq market correction.Possible
- Nasdaq selloff may reduce Royal Bank of Canada's portfolio valueNasdaq selloff may reduce Royal Bank of Canada's investment portfolio valuePossible
- Nasdaq selloff may cause Amazon's market price to declineNasdaq selloff could cause Amazon's market price to declinePossible
- Morgan Stanley's portfolio may decline amid Nasdaq selloffMorgan Stanley's portfolio value may decline due to losses in Invesco ETFsPossible
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The entities involved
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Nasdaq
American fully electronic stock exchange
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Motilal Oswal
Indian businessman
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Invesco
US investment management company
Related events
- Nasdaq selloff affects investor sentiment, involving Abhishek Singh.
- Apple stock is a major component of Nasdaq funds.
- Onsemi was listed on the Nasdaq stock exchange on November 1, 2026, joining other large-cap technology companies.
- Materialise listed its shares on the Nasdaq stock exchange on August 27, 2026.
- Nasdaq is attracting major companies like Intel, AMD, and Micron with its lower fees compared to the NYSE, where several companies are listing.