India’s largest actively managed equity fund, PPFAS Mutual Fund’s $14.9 billion Flexi Cap Fund, has added exposure to IT services companies over the past three months to May as valuations cooled sharply, betting against investor fears over artificial intelligence’s impact on the outsourcing industry. Chief Investment Officer for equities Rajeev Thakkar said in an interview on June 11 that the pessimism over AI replacing outsourcing work is not realistic. The NSE Nifty IT Index, which includes Tata Consultancy Services Ltd. and Infosys Ltd., is down over 27% this year, trading at 15.7 times 2026 estimated price to earnings, down from 21.2 times a year ago. The fund has nearly 19% allocated to the technology sector, with HCL Technologies Ltd. and Infosys among the top 10 bets. It has reduced its allocation to debt and money-market instruments to 14.03% as of May, after deploying cash through March, April and May; debt holdings had doubled in April last year to 23.77% from 11.85% in March 2025. About 70% of the fund is in core equities as of May, compared with 67.30% a year ago. The fund is down about 0.8% over the past year, but has returned nearly 17.8% over the past decade.