 "stock markets, trading")
US-focused mutual funds offered by Indian asset management companies delivered strong gains in 2025. Benchmark indices, such as the S&P 500 and the Nasdaq, have posted returns of 16–20 per cent over the past year, driven largely by a narrow group of mega-cap technology and artificial intelligence (AI)-linked companies. As they enter 2026, investors will need to rebalance their portfolios to manage risks that may arise from elevated valuations and other uncertainties.
How did the AI-led rally drive US markets in 2025?
The US equity rally over the past year was highly concentrated, with a handful of large technology companies
