NIFTY is currently at 3928.75 (-0.34%) compared to its previous closure of 3942.00. NIFTY JUNIOR is in green at the moment.
C & C Constructions Limited that got listed on the markets yesterday had a poor closure yesterday. The stock opened at 245.00 today and is currently trading at 274.50 taking some recovery.
Add commentFebruary 27th, 2007
Many investment advisors whom we often meet feel that mutual funds in the technology sector outperform other sectors. Proof? Look back at the performance of the technology sector mutual funds and you can get to know of this yourself. Also do read our round-up of the Indian Technology Sector Mutual Funds. The price movements of Top IT firms as well as those on the Tier-2 will also reflect this. However, investments in sector specific mutual funds in general and technology sector in particular is very risky. This is because prices of the stocks in the technology sector are highly volatile, depends on National and International factors and the stock prices go up at a great speed and even come down at even greater speeds at bad times. Remember the week of the September 11 attacks?
Now that the Indian Technology sector, IT and IT Enabled Services and the Telecom on the other hand, the performance of the sector is more or less stable. Most Indian IT companies are de-risking from the US factor and are trying to have a global span that is more diversified. While TCS has upped its presence in China (along with Microsoft), Satyam is trying to improve in the Latin and European Markets. The European mantra is very well identified and most Indian IT companies such as HCL Technologies and Tech Mahindra are doing extremely well in this region in terms of their operations. While these were few of the big basket of the Indian Technology sector, we mention these companies because almost all tech-sector mutual funds have some put some percentage of their investment into these stocks. Did we forget Infosys in this list? No. Infosys is a stock that no Technology Sector Mutual Fund Manager can afford to ignore.
Add commentFebruary 27th, 2007
Mutual Funds in the technology sector are undoubtedly the flavor of the season as Indian IT companies continues to bank on the keyword called Global Outsourcing. Almost all fund companies have a scheme dedicated to the technology sector. Performance Funds are more importance, feels many and hence we picked three of the best technology mutual funds that have done extremely well that they have outperformed all other funds and schemes in the entire of the Indian mutual fund market.
Our picks in the Technology space
We picked three of the top schemes targeted at the technology sector. These funds have spent a decent time in the market for now and are old enough to have witnessed some of the best and worst times of the equity markets.
SBI Magnum Sector Funds Umbrella-IT
DSP ML Technology.com
Prudential ICICI Technology Fund
All the funds are open ended funds which means that you can enter and exit from the funds at any time you want depending on your financial needs and the performance of the IT and ITES sectors
Fund Objectives
Take a look at the objectives of the each of the funds
SBI Magnum Sector Funds Umbrella IT aims to provide the investors maximum growth opportunity through equity investment in stocks of IT sector.
DSP ML Technology.com focuses on investing in technology and technology dependent companies. The primary objective of the scheme is to generate long term capital appreciation and secondary objective is income generation and distribution of dividend, from a portfolio constituted of equity and equity related securities concentrating on investment focus of the scheme
Prudential ICICI Technology Fund aims to generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies.
So, the objectives of the three schemes is more or less the same except that DSP ML Technology.com also aims to generate income through dividends (which means that scheme puts in money in companies which are reasonably doing well if not great yet pay good dividends.)
Age and assets under management
Almost all the funds have the same age and have come up at the best booming time of the IT sector. The SBI MSFU IT was launched on July 03, 1999. DSP ML Technology.com was launched on March 11, 2000 and Pru ICICI Technology Fund on February 05, 2000
Considering AUM, PruICICI leads while DSP ML Technology.com and SBI MSFU IT lags behind.
A word of caution though – Sectoral funds are highly risk prone and are only for equity investors who can take a bit extra risk appetite.
Add commentFebruary 27th, 2007
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