The fund’s portfolio saw a 5% reduction in AI‑linked equities after a surge that pushed some holdings from a modest 5% into the 8‑10% range, said Vora in a CNBC‑TV18 interview. Yet the trim is modest, reflecting a belief that AI’s macro‑economic tailwinds remain intact.
Khemka explained that a 5% allocation can balloon to 8‑10% simply by price appreciation, creating concentration risk without new capital inflows. He noted that investors often “trim back to around 5‑6%,” preserving upside while curbing exposure.
The narrative around AI’s long‑term impact continues to be bullish. Vora pointed to rising U.S. spending on data centres and energy infrastructure, arguing that a shift in that capital cycle could reverberate through the entire ecosystem. He warned that any question over the growth of AI demand could “question the whole economy and markets.”
Regulatory changes add a layer of uncertainty. Vora stressed diversification as a shield against policy shocks, while Khemka said short‑term regulatory hits could be followed by sustainable sector growth. Both agreed that the current environment demands careful balancing of risk and reward.
Looking ahead, the funds are monitoring upcoming earnings releases and macro data for signals on AI spending trends. Vora remains optimistic about capital‑market intermediaries and industrials, especially power transmission and defence, as potential long‑term drivers. The broader market will likely continue to be a stock‑picker’s arena, as the firms say.