Moneycontrol PRO
LIVE NOWIntrazon 2.0 - India’s Largest Retail Intraday Traders Online Conference brought to you by Moneycontrol Pro & Espresso (A Sharekhan Company)

Digital wave: Four technology mutual funds that gave 83-95% in the last one year

Technology mutual funds have been chart toppers over the past one year

November 17, 2021 / 08:42 AM IST
Stocks of software services companies and firms in the technology space have had a fabulous run over the last one year. Not surprisingly, technology mutual funds, that invest in these stocks have been chart toppers. There are five technology or digital funds and four of those have a track record of over 20 years. Given that the ambit of technology funds has widened, with investment opportunities now available in global majors, digital communications and startups, these schemes are not proxies just for IT services companies. Technology funds have reasonably large asset sizes. The regular plans of these funds charge 2-2.46 percent, while the direct options come with lower expense ratios.
Stocks of software services companies and firms in the technology space have had a fabulous run over the last one year. Not surprisingly, technology mutual funds, that invest in these stocks have been chart toppers. There are five technology or digital funds and four of those have a track record of over 20 years. Given that the ambit of technology funds has widened, with investment opportunities now available in global majors, digital communications and startups, these schemes are not proxies just for IT services companies. Technology funds have reasonably large asset sizes. The regular plans of these funds charge 2-2.46 percent, while the direct options come with lower expense ratios.
ICICI Prudential Technology Fund has been around for over 21 years. The scheme's direct has delivered 95.5 percent returns in the last one year, according to data from Valueresearch, and tops the chart in the category. It is also the largest fund in the category with assets of Rs 6,887 crore. The expense ratio for the direct plan is 0.79 percent. It invests mainly in software services stocks. Allocations are also made to communication players as well as global technology stocks such as Microsoft, Accenture and Salesforce.
ICICI Prudential Technology Fund has been around for over 21 years. The scheme's direct has delivered 95.5 percent returns in the last one year, according to data from Valueresearch, and tops the chart in the category. It is also the largest fund in the category with assets of Rs 6,887 crore. The expense ratio for the direct plan is 0.79 percent. It invests mainly in software services stocks. Allocations are also made to communication players as well as global technology stocks such as Microsoft, Accenture and Salesforce.
Tata Digital India Fund has been around for less than six years. It has an excellent track record over this period. In the last one year, the fund has delivered 94.2 percent returns. It has assets worth Rs 3,842 crore and charges an expense ratio of 0.43 percent. The scheme invests mostly in stocks of domestic software services companies, with engineering and communication players also getting minor exposures.
Tata Digital India Fund has been around for less than six years. It has an excellent track record over this period. In the last one year, the fund has delivered 94.2 percent returns. It has assets worth Rs 3,842 crore and charges an expense ratio of 0.43 percent. The scheme invests mostly in stocks of domestic software services companies, with engineering and communication players also getting minor exposures.
Aditya Birla Digital India Fund comes next, with 83.9 percent returns in the last one year. This scheme, too, has a track record of over 21 years. It manages assets worth Rs 2,658 crore. The expense ratio for the direct plan is 1.02 percent. Apart from domestic software stocks, the fund also has exposures to global firms such as Apple, Amazon, Adobe Systems and Microsoft.
Aditya Birla Digital India Fund comes next, with 83.9 percent returns in the last one year. This scheme, too, has a track record of over 21 years. It manages assets worth Rs 2,658 crore. The expense ratio for the direct plan is 1.02 percent. Apart from domestic software stocks, the fund also has exposures to global firms such as Apple, Amazon, Adobe Systems and Microsoft.
SBI Technology Opportunities Fund has given 83.4 percent returns in the last one year. It manages Rs 1,891 crore of assets. The expense ratio is 0.98 percent. The scheme invests in domestic and overseas technology and software stocks. The scheme has been around since 1999.
SBI Technology Opportunities Fund has given 83.4 percent returns in the last one year. It manages Rs 1,891 crore of assets. The expense ratio is 0.98 percent. The scheme invests in domestic and overseas technology and software stocks. The scheme has been around since 1999.
Franklin India Technology Fund did not have as good a run as others mentioned earlier. The scheme managed only 54.6 percent returns in the last one year. It has been in exitance since 1998. The fund invests in local and global technology stocks. It manages Rs 721 crore in assets and charges a hefty 1.47 percent expense ratio for its direct plan.
Franklin India Technology Fund did not have as good a run as others mentioned earlier. The scheme managed only 54.6 percent returns in the last one year. It has been in exitance since 1998. The fund invests in local and global technology stocks. It manages Rs 721 crore in assets and charges a hefty 1.47 percent expense ratio for its direct plan.
These funds are not our recommendations. Any thematic scheme comes with risks. Though technology funds have delivered exceptionally well over the past 20 years, investors must keep exposures at minimal levels, if at all. Take the help of your financial advisor and invest in diversified funds. You could also make your shortlist from MC30's basket of high-quality funds.
These funds are not our recommendations. Any thematic scheme comes with risks. Though technology funds have delivered exceptionally well over the past 20 years, investors must keep exposures at minimal levels, if at all. Take the help of your financial advisor and invest in diversified funds. You could also make your shortlist from MC30's basket of high-quality funds.
Venkatasubramanian K
first published: Nov 17, 2021 08:42 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark