Avoid knee-jerk reaction: Stay the course with a 3-5-year horizon

The United States (US) government's onetime $100,000 fee on new H-1B visa applications has unsettled investors in information technology (IT) funds.

- HIMALI PATEL

These funds are down 11.4 percent year-to-date. Altogether, 32 schemes manage %47,569 crore. However, experts are advising against knee-jerk reactions.

Limited impact

The fee hike will raise the costs for Indian IT firms with significant US exposure. “Around 60-65, per cent of large IT company revenues come from North America, with many projects reliant on visa holders,” says Rahul Bhutoria, director and cofounder, Valtrust.

However, the fee applies only to new applications, and not to renewals or existing holders. “Margins and earnings of Indian IT services players will likely not be materially impacted. The possible effect, if any, will be seen only from FY2026-27 onward,” says Shibani Kurian, head of