Sectoral mutual fund.........tech

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Sectoral mutual fund.........tech

  1. 1. PROJECT TITLE: COMPARATIVE STUDY OF TOP 5SECTORAL(TECH) FUNDS IN INDIASUBMITTED TO: SUBMITTED BY:DR. ANUBHA GUPTA GROUP-10 DEEPAK KUMAR [FT-10-844] CHANDAN KUMAR [FT-10-842] HARSH VARDHAN [FT-10-858] SHEKHAR MITTAL [FT-10-944] SHUBHADIP BISWAS [FT-10-948] SUPARAG MISHRA [FT-10-959] PGDM 10-12 IILM-GSM
  2. 2. ACKNOWLEDGEMENTThe satisfaction and euphoria that accompany the successful completion of anytask of dream would be incomplete without mentioning the name of the peoplewhose constant guidance and encouragement has crowned all our efforts withsuccess.Firstly we would like to thank DR. ANUBHA GUPTA for giving us her precioustime, encouragement and guidance that helped us a lot to making this projectcompact and meaningful.Last but not least we would like to thank all those people for their immensecooperation who encouraged us in any way and without support of those peoplethis project never be completed successfully.Most specially a special thanks to our family and friends.
  3. 3. EXECUTIVE SUMMARYThe mere words bring strong memories for investors, from the euphoria during the off-the-chartsgrowth of the late 1990s to widespread despair during the subsequent tech meltdown between2000 and 2002.Virtually all technology funds are stock or equities-only funds, and the majority of them fall intothe growth fund category in the Morningstar style box. These funds will invest in a wide range oftechnology-related companies, including anything associated with the research, development andthe use of computers, software, communications, the internet, semiconductors or any othersegment of technology. Biotechnology funds are usually included in the healthcare sector,although they can sometimes fall into the tech sector as well. As with most other types of funds,tech funds can also be either domestic or global with regards to what securities are eligible forpurchase.Technology is likely to be a big theme for 2011. Funds focusing on the Information Technologysector have topped the list for the equity segment in the month of December-2010. However,none of the best performing technology funds were able to deliver better returns than BSE ITIndex or CNX IT Index in December. In april-2011, the BSE IT Index and CNX IT Index gave8.93% and 10.22% respectively.The top performing tech fund in April-2011 is ICICI PRUDENTIAL TECHNOLOGY FUNDwith a Month-to-Date (MTD) performance of 9.60% and a Year to Date (YTD) performance of30.90%.TOP FIVE TECH FUNDS IN INDIA-ICICI Pru Technology Fund (G)Franklin Infotech Fund - (G)SBI Magnum SFU - Infotech FundBirla Sun Life New MillenniumDSP BR Technology.com (G)The total traded value for the last six months of all CNX IT Index constituents is approximately5.88% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about10.22% of the free float market capitalization as on March 31, 2011.InfoTech Funds category gained 1.60% over one week period ended 4 March 2011. SBI MagnumSFU – InfoTech Fund was the top gainer with a return of 1.95%.
  4. 4. Mutual FundsMutual fund schemes may be classified on the basis of its structure and its investment objective.  By Structure:  Open-ended Funds An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.  Closed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period.  Interval Funds Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.  By Investment Objective:-  Growth Funds The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities  Income Funds The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.  Balanced Funds The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents
  5. 5.  Money Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money Load Funds A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history Special Schemes Industry Specific Schemes Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc Index Schemes Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50 Sectoral Schemes Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as A Group shares or initial public offerings.
  6. 6. RISK HIERARCHY OF MUTUAL FUNDS:SECTORAL MUTUAL FUNDS:Sector mutual funds are those mutual funds that restrict their investments to a particular segmentor sector of the economy. Also known as thematic funds, these funds concentrate on one industrysuch as infrastructure, banking, technology, energy, real estate, power heath care, FMCG,pharmaceuticals etc. The idea is to allow investors to place bets on specific industries or sectors,which have strong growth potential.These funds tend to be more volatile than funds holding a diversified portfolio of securities inmany industries. Such concentrated portfolios can produce tremendous gains or losses,depending on whether the chosen sector is in or out of favor. Sectoral mutual funds come in thehigh risk high reward category and are not suitable for investors having low risk appetite.Generally, mutual fund houses avoid launching sectoral funds as they are seasonal in nature and
  7. 7. do well only in cycles. Since these funds focus on just one sector of the economy, they limitdiversification and the fund manager’s ability to capitalize on other sectors, if the specific sectorsaren’t doing well. Unless a particular sector is doing very well and its long term growthprospects look bright, it advisable not to trade in sector funds.TECHNOLOGY FUND: The mere words bring strong memories for investors, from the euphoria during the off-the-charts growth of the late 1990s to widespread despair during the subsequent tech meltdownbetween 2000 and 2002.Technology is such an integral part of all aspects of our daily lives that the sector is virtuallycertain to have more days in the sun. Despite this, many investors still look at mutual funds thatconcentrate in this sector with great suspicion, wondering if the bottom might fall out on themagain. This article will examine the nature and composition of technology funds, as well as howthey performed both before and after the market downturn in 2000.Virtually all technology funds are stock or equities-only funds, and the majority of them fall intothe growth fund category in the Morningstar style box. These funds will invest in a wide range oftechnology-related companies, including anything associated with the research, development andthe use of computers, software, communications, the internet, semiconductors or any othersegment of technology. Biotechnology funds are usually included in the healthcare sector,although they can sometimes fall into the tech sector as well. As with most other types of funds,tech funds can also be either domestic or global with regards to what securities are eligible forpurchase.Although there are exceptions, most technology funds tend to seek companies that fall into oneof two categories. The first category is made up of larger, more established technologycompanies that have strong cash flow and substantial market share. The second is companies(usually smaller ones) that have developed new ideas or patents that analysts believe will providesignificant potential for growth. The volatility inherent in this sector often results in highportfolio turnover, which is usually greater than that of funds in other sectors, such as energy orconsumer staples.
  8. 8. PRESENT SCENARIO OF TECH FUND IN INDIA:Technology is likely to be a big theme for 2011. Funds focusing on the Information Technologysector have topped the list for the equity segment in the month of December-2010. However,none of the best performing technology funds were able to deliver better returns than BSE ITIndex or CNX IT Index in December. In april-2011, the BSE IT Index and CNX IT Index gave8.93% and 10.22% respectively.Despite US Congress signing a bill to tax outsourcing services which is expected to increaseexpenses of Indian IT companies, the IT sector stocks have performed well as the market isexpecting good quarterly results.The top performing tech fund in April-2011 is ICICI PRUDENTIAL TECHNOLOGY FUNDwith a Month-to-Date (MTD) performance of 9.60% and a Year to Date (YTD) performance of30.90%.TOP FIVE TECH FUNDS IN INDIA: Name NAV(Rs.) 1w % 3m % 6m % 1y % 3y %ICICI Pru Technology Fund (G) 19.9 1.6 3.9 7.2 30.9 15.5Franklin Infotech Fund - (G) 70.5 0.4 3.2 6.3 21.9 23.6SBI Magnum SFU - Infotech Fund 24.6 0.5 2.6 3.2 19.8 10.2Birla Sun Life New Millennium 20.9 0.5 [1.2] [3.9] 7.2 5.2DSP BR Technology.com (G) 33.6 0.9 [1.1] [6.3] 2.1 8.9
  9. 9. 1. ICICI Pru Technology Fund (G):Fund Name : ICICI Prudential Mutual Fund ICICI Pru Technology FundScheme Name : (G) ICICI Prudential AssetAMC : Management Co LtdType : OpenCategory : Equity - InfoTechLaunch Date : 07-Jan-00Fund : Mrinal SinghManagerNet Assets : 117.08(Rs. cr)NAV DetailsNAV Date : 13-Apr-11NAV [Rs.] : 19.9Buy/Resale Price [Rs.] : 19.69Sell/Repurchase Price [Rs.] : 19.89Entry Load % : NilExit Load % : NIL
  10. 10. NAV CHARTPERFORMANCE(%)* returns above 1 yr. are annualized Since 1w 1m 3m 6m 1y 3y 5y INCScheme Returns 1.6 9.6 3.9 7.2 30.9 15.5 12.6 6.4Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4
  11. 11. LATEST PAYOUTS Dividends BonusRatio NA NADate NA NAINVESTMENT DETAILSTax Benefits : 54EAMin. Investment(Rs.) : 5,000.00Increm.Investment(Rs.) : 500.00IN & OUTInName of the Company No of sharesOracle Fin.Serv. 19,740OutName of the Company No of sharesNo investments sold out
  12. 12. FUND HOLDINGSAs on 28-Feb-2011Asset Type Instrument Name Industry Net No of Mkt Assets Shares Value (%) (Cr.)Equity & Equity related InvestmentsEquity infosys technologies ltd IT - Software 49.0 NA NAEquity tata consultancy services ltd IT - Software 15.2 NA NAEquity eclerx services ltd IT - Software 14.4 NA NAEquity nucleus software exports ltd IT - Software 3.0 NA NAEquity wipro ltd IT - Software 2.9 NA NAEquity infinite computer solutions (India) ltd IT - Software 2.7 NA NAEquity infotech enterprises ltd IT - Software 2.1 NA NAEquity hcl infosystems ltd IT - 1.5 NA NA HardwareEquity quality assurance institute (i) ltd Unspecified 0.8 NA NA SectorEquity sip technologies and exports ltd IT - Software 0.0 NA NADerivative InvestmentsDerivatives - infosys technologies ltd - futures -/- 4.0 NA NAStock FutureCash & Cash EquivalentNet CA & short term debt and other current assets -/- 4.5 NA NAOthers
  13. 13. 2. FRANKLIN INFOTECH FUND - (G): Franklin Templeton MutualFund Name : FundScheme : Franklin InfoTech Fund - (G)Name Franklin Templeton AssetAMC : Management (I) Pvt.Ltd.Type : OpenCategory : Equity - InfoTechLaunch Date : 10-Aug-98Fund : Anand RadhakrishnanManagerNet Assets : 152.71(Rs. cr)NAV DETAILSNAV Date : 13-Apr-11NAV [Rs.] : 70.5Buy/Resale Price [Rs.] : 69.78Sell/Repurchase Price [Rs.] : 70.48Entry Load % : NIL 1% if redeemed /Exit Load % : switched within 3 years of allotment.
  14. 14. NAV CHART:PERFORMANCE(%)* returns above 1 yr. are annualized Since 1w 1m 3m 6m 1y 3y 5y INCScheme Returns 0.4 8.3 3.2 6.3 21.9 23.6 11.6 23.6Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4LATEST PAYOUTS Dividends BonusRatio NA 1:1Date NA 11-Jan-00
  15. 15. INVESTMENT DETAILSTax Benefits : 54EAMin. Investment(Rs.) : 5,000.00Increm.Investment(Rs.) : 1,000.00IN & OUTInName of the Company No of shares No fresh investments made inOutName of the Company No of shares No investments sold out
  16. 16. FUND HOLDINGSAs on 28-Feb-2011Asset Type Instrument Name Industry Net No of Mkt Assets Shares Value (%) (Cr.)Equity & Equity related InvestmentsEquity infosys IT - 50.1 240,000 72.1 SoftwareEquity tcs IT - 25.5 330,000 36.7 SoftwareEquity wipro IT - 9.6 316,666 13.9 SoftwareEquity oracle financial services software IT - 3.4 24,000 4.9 SoftwareEquity infotech enterprises IT - 2.2 200,000 3.2 SoftwareEquity eclerx services IT - 1.8 40,000 2.6 SoftwareEquity firstsource solutions IT - 0.5 400,000 0.6 SoftwareEquity mphasis IT - 0.3 10,000 0.4 SoftwareEquity mindtree IT - 0.3 10,000 0.4 SoftwareEquity mastek IT - 0.1 15,000 0.2 SoftwareEquity intrasoft technologies IT - 0.1 17,500 0.1 Software
  17. 17. Equity collabera solutions IT - 0.0 NA 0.0 SoftwareCash & Cash EquivalentNet CA & other current assets -/- 6.0 NA 8.7Others
  18. 18. 3. SBI MAGNUM SFU - INFOTECH FUND:Fund Name : SBI Mutual Fund SBI Magnum SFU - InfotechScheme Name : FundAMC : SBI Funds Management LtdType : OpenCategory : Equity - InfotechLaunch Date : 04-Jun-99Fund Manager : Ms. Sohini AndaniNet Assets (Rs. : 50.11cr)NAV DETAILSNAV Date : 13-Apr-11NAV [Rs.] : 24.6Buy/Resale Price [Rs.] : 24.32Sell/Repurchase Price [Rs.] : 24.57Entry Load % : NilExit Load % : NIL
  19. 19. NAV CHARTPERFORMANCE(%)* returns above 1 yr. are annualized Since 1w 1m 3m 6m 1y 3y 5y INCScheme Returns 0.5 7.5 2.6 3.2 19.8 10.2 8.1 10.5Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4
  20. 20. LATEST PAYOUTS Dividends BonusRatio 40 % NADate 29-Jun-07 NAINVESTMENT DETAILSTax Benefits : 54EAMin. Investment(Rs.) : 2,000.00Increm.Investment(Rs.) : 500.00IN & OUTInName of the Company No of sharesWipro 20,010OutName of the Company No of sharesPolaris Soft. 112,035Sasken Comm.Tec. 5,875
  21. 21. FUND HOLDINGSAs on 28-Feb-2011Asset Type Instrument Name Industry Net No of Mkt Assets Shares Value (%) (Cr.)Equity & Equity related InvestmentsEquity infosys technologies limited IT - 50.9 80,160 24.1 SoftwareEquity tata consultancy services ltd. IT - 17.5 74,391 8.3 SoftwareEquity infotech enterprises limited IT - 5.7 169,006 2.7 SoftwareEquity kpit cummins infosystems ltd. IT - 5.6 180,259 2.6 SoftwareEquity polaris software IT - 4.3 112,035 2.0 SoftwareEquity hcl technologies limited IT - 3.7 39,545 1.7 SoftwareEquity cmc ltd. IT - 3.4 8,080 1.6 HardwareEquity niit limited Computer 2.4 231,248 1.1 EducationEquity oracle financial services software IT - 2.2 4,992 1.0 SoftwareEquity redington (india) ltd. IT - 2.1 130,099 1.0 HardwareEquity persistent systems limited IT - 2.0 24,984 0.9 Software
  22. 22. Equity sasken communication technologies l IT - 0.2 5,875 0.1 SoftwareCash & Cash EquivalentCash & Bank cash & current assets -/- 0.0 NA 0.0Balance & BankDeposits
  23. 23. 4. BIRLA SUN LIFE NEW MILLENNIUMFund Name : Birla Sun Life Mutual Fund Birla Sun Life NewScheme Name : Millennium Fund (G) Birla Sunlife AssetAMC : Management Company LtdType : OpenCategory : Equity - InfotechLaunch Date : 15-Dec-99Fund : Atul PenkarManagerNet Assets : 60.62(Rs. cr)NAV DETAILSNAV Date : 13-Apr-11NAV [Rs.] : 20.9Buy/Resale Price [Rs.] : 20.73Sell/Repurchase Price [Rs.] : 20.94Entry Load % : NIL For Purchase/switch in of units below Rs. 5 crore in value, an exit load of 1% is payable if the units areExit Load % : Redeemed/switched out within 3 years from the date of allotment. For Purchase / Switch in of units, equal to or greater than 5 crores in value, no exit load is payable.
  24. 24. NAV CHARTPERFORMANCE(%)* returns above 1 yr. are annualized Since 1w 1m 3m 6m 1y 3y 5y INCScheme Returns 0.5 8.3 [1.2] [3.9] 7.2 5.2 7.1 6.8Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4
  25. 25. LATEST PAYOUTS Dividends BonusRatio NA NADate NA NAINVESTMENT DETAILSTax Benefits : 54EAMin. Investment(Rs.) : 5,000.00Increm.Investment(Rs.) 1,000.00:IN & OUTInName of the Company No of shares No fresh investments made inOutName of the Company No of sharesInfotech Enterp. 0Persistent Sys 0
  26. 26. FUND HOLDINGSAs on 28-Feb-2011Asset Instrument Name Industry Net No of MktType Assets Shares Value (%) (Cr.)Equity & Equity related InvestmentsEquity infosys technologies ltd. IT - Software 36.9 NA NAEquity tata consultancy services ltd. IT - Software 12.6 NA NAEquity wipro ltd. IT - Software 6.5 NA NAEquity bharti airtel ltd. Telecomm-Service 6.0 NA NAEquity hcl technologies ltd. IT - Software 5.7 NA NAEquity polaris software lab ltd. IT - Software 4.2 NA NAEquity oracle financial services software ltd. IT - Software 3.9 NA NAEquity educomp solutions ltd. Computer Education 3.8 NA NAEquity dq entertainment international ltd. Entertainment 2.8 NA NAEquity d.b. corp ltd. Entertainment 2.7 NA NAEquity hindustan media ventures ltd. Media - 2.1 NA NA Print/Television/RadioEquity subex ltd. IT - Software 2.1 NA NAEquity infotech enterprises ltd. IT - Software 2.0 NA NAEquity allied digital services ltd. IT - Software 2.0 NA NAEquity megasoft ltd. IT - Software 1.1 NA NAEquity persistent systems ltd IT - Software 0.1 NA NA
  27. 27. Equity magnasound india ltd. Media & 0.0 NA NA EntertainmentCash & Cash EquivalentCash & cash & cash equivalents -/- 5.6 NA NACashEquivalentNet CA & net receivables / payables -/- [0.1] NA NAOthers
  28. 28. 5. DSP BR TECHNOLOGY.COM (G):Fund Name : DSP BlackRock Mutual FundScheme : DSP BR Technology.com (G)Name DSP BlackRock AssetAMC : Management Company LtdType : OpenCategory : Equity - InfotechLaunch Date : 11-Mar-00Fund : Apoorva ShahManagerNet Assets : 67.38(Rs. cr)NAV DETAILSNAV Date : 13-Apr-11NAV [Rs.] : 33.6Buy/Resale Price [Rs.] : 33.22Sell/Repurchase Price [Rs.] : 33.55Entry Load % : NIL 1% of the applicable NAVExit Load % : if redeemed or switched out.
  29. 29. NAV CHARTPERFORMANCE(%)* returns above 1 yr. are annualized Since 1w 1m 3m 6m 1y 3y 5y INCScheme Returns 0.9 7.9 [1.1] [6.3] 2.1 8.9 14.2 11.7Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4
  30. 30. LATEST PAYOUTS Dividends BonusRatio NA NADate NA NAINVESTMENT DETAILSTax Benefits : 54EAMin. Investment(Rs.) : 5,000.00Increm.Investment(Rs.) : 1,000.00IN & OUTInName of the Company No of shares No fresh investments made inOutName of the Company No of sharesNucleus Soft. 47,343
  31. 31. FUND HOLDINGSAs on 28-Feb-2011Asset Instrument Name Industry Net No of MktType Assets Shares Value (%) (Cr.)Equity & Equity related InvestmentsEquity infosys technologies IT - Software 25.8 56,030 16.8Equity tata consultancy services IT - Software 13.4 78,352 8.7Equity hcl technologies IT - Software 7.5 110,727 4.9Equity wipro IT - Software 5.7 84,130 3.7Equity oracle financial services software IT - Software 5.3 16,938 3.5Equity take solutions IT - Software 4.6 949,903 3.0Equity cmc IT - Hardware 4.4 14,401 2.9Equity niit technologies IT - Software 4.3 141,280 2.8Equity allied digital services IT - Software 3.7 266,368 2.4Equity entertainment network (india) Entertainment 2.6 80,672 1.7Equity hindustan media ventures Media - 2.4 104,080 1.5 Print/Television/RadioEquity ht media Media - 2.3 110,923 1.5 Print/Television/RadioEquity zee entertainment enterprises Entertainment 2.2 120,722 1.4Equity bharti airtel Telecomm-Service 2.1 41,751 1.4Equity tulip telecom Telecomm-Service 1.8 80,138 1.2
  32. 32. Equity kpit cummins infosystems IT - Software 1.7 74,397 1.1Equity hathway cable & datacom Entertainment 1.0 52,342 0.6Equity idea cellular Telecomm-Service 0.7 80,069 0.5Equity nucleus software exports IT - Software 0.6 47,343 0.4Equity info edge (india) Miscellaneous 0.5 5,792 0.3Equity niit Computer Education 0.5 59,736 0.3Equity eclerx services IT - Software 0.3 3,013 0.2Equity hinduja global solutions IT - Software 0.1 2,204 0.1Equity city online services Miscellaneous 0.0 NA NACash & Cash EquivalentNet CA net receivable/payable -/- 5.1 NA 3.3&OthersCBLO cblo / reverse repo investments UR / N.A. 1.5 NA 1.
  33. 33. COMAPRISON OF RETURN IN ONE YEAR: RETURN IN 1 YEAR RETURN IN 1 YEAR DSP BR 2.1 BIRLA SUNLIFE 7.2 SBI MAGNUM 19.8 FRANKLIN INFOTECH 21.9 ICICI PRU 30.9COMPARISON OF NET ASSET VALUE: NET ASSET VALUE NET ASSET VALUE DSP BR 33.6 BIRLA SUNLIFE 20.9 SBI MAGNUM 24.6 FRANKLIN INFOTECH 70.5 ICICI PRU 19.9COMPARISON OF NET ASSET: NET ASSET IN CR. NET ASSET IN CR. DSP BR 67.38 BIRLA SUNLIFE 60.62 SBI MAGNUM 50.11 FRANKLIN INFOTECH 152.71 ICICI PRU 117.08
  34. 34. COMPARISON IN MARKET CAPITALISATION:ICICI PRUDENTIAL TECHNOLOGY FUNDGiant- 72.29%Large- 3.81%Medium 0.0%Small 16.28%Micro -7.62%FRANKLIN INFOTECH FUNDGiant -91.49%Large- 3.3%Medium- 0.29%Small- 4.29%Micro- 0.63%SBI MAGNUM INFOTECHGiant- 76.49%Large- 6.16%Medium- 4.88%Small -12.46%Micro- 0.0%BIRLA SUN LIFE NEW MILLENNIUM FUNDGiant- 70.56%Large- 9.75%Medium- 6.18%Small -6.09 %Micro -7.43%DSP BLACKROCK TECHNOLOGY.COMGiant- 54.14%Large- 11.39%Medium- 10.19%Small -15.78%Micro -8.5%
  35. 35. CONCLUSIONReturn of InfoTech funds in April-2010 is 3.64%. It was just behind of banking funds with returnof 6.26%. And in YTD return this sector was in second position with return of 98.31%. It wasjust behind of pharma funds [112.67%].Large IT companies have seen a robust revival in volumes and reasonable price stability thisyear, as client IT spends have revived and key pressure points witnessed some easing.These helped companies such as Infosys, TCS, and HCL Tech deliver returns in the 23-56 percent range; Wipro has been somewhat sedate, returning just 12 per cent. It was substantialexposure to these stocks that helped ICICI Technology and Franklin InfoTech outperform.The top performing tech fund in April-2011 is ICICI PRUDENTIAL TECHNOLOGY FUNDwith a Month-to-Date (MTD) performance of 9.60% and a Year to Date (YTD) performance of30.90%.They are 10% ahead of second ranker FRANKLIN INFOTECH with a YTDperformance of 21.9.Net Asset Value[NAV] of FRANKLIN INFOTECH [70.5] is highest among all the tech funds.But they are not getting desire result. If we see the NAV chart of FRAKLIN INFOTECH of last3 years, it is showing a rapid growth in NAV in comparison with others.One thing we have noticed that all the tech funds have invested in INFOSYS,TCS and WIPROand HCL TECH because of their growth in IT sector. Recently HCL Tech and Infosys have goneup 2% in BSE IT INDEX.There is a tremendous possibility of growth in technology sector in 2011. InformationTechnology (IT) industry has played a major role in the Indian economy during the last fewyears. A number of large, profitable Indian companies today belong to the IT sector and a greatdeal of investment interest is now focused on the IT sector.The total traded value for the last six months of CNX IT Index stocks is approximately 59.93%of the traded value of the IT sector. CNX IT Index stocks represent about 75.15 % of the freefloat market capitalization of the IT sector as on March 31, 2011.The total traded value for the last six months of all CNX IT Index constituents is approximately5.88% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about10.22% of the free float market capitalization as on March 31, 2011.InfoTech Funds category gained 1.60% over one week period ended 4 March 2011. SBIMagnum SFU – InfoTech Fund was the top gainer with a return of 1.95%.______________________________________________________________________________

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