4 Technology Mutual Fund Schemes Have Given Robust Returns Between 42% To 36% In 3-Years

4 technology equity mutual funds have given robust returns between 42% to 36% in 3 years on an annualised basis. The schemes are ICICI Prudential Technology Fund, Aditya Birla Sun Life Digital India Fund, Tata Digital India Fund, and SBI Technology Opportunities Fund.

All the four schemes have given higher returns than the benchmark return of 36.46%, while ICICI Prudential Technology Fund and Aditya Birla Sun Life Digital India Fund has generated high return than the category average return of 42.63% over three years.

Scheme Name	6-months returns (%)	YTD Returns (%)	1-year returns (%)	3-year returns (%)	5-year returns (%)	7-year returns (%)
ICICI Prudential Technology Fund	4.68	-0.87	-17.92	46.16	21.95	19.01
Aditya Birla Sun Life Digital India Fund	7.36	1.17	-14.33	42.67	21.41	19.71
Tata Digital India Fund	5.89	0.7	-16.79	41.93	22.73	19.15
SBI Technology Opportunities Fund	9.43	0.44	-9.51	39.77	21.56	18.14
S&P BSE IT TRI (benchmark)	5.15	-0.8	-20.45	36.46	20.58	16.30
Category Average	5.01	-0.59	-14.64	42.63	21.91	19.00

In last one year, technology schemes have underperformed, given negative returns, even category and benchmark also has underperformed. In last 5 and 7 years they have managed to give double digit returns higher than the benchmark returns.

Except ICICI Prudential Technology Fund, all the other three schemes have no debt holdings in their portfolio. The equity holding in the portfolio of all the 4 equity schemes is between 98.39% to 96.02%.

ICICI Prudential Technology Fund has invested in total 49 stocks and its exposure to technology sector is 78.43%. SBI Technology Opportunities Fund has exposure of 66.28% to technology sector, and holds only 18 stocks in its portfolio. Both these funds have Infosys, Tata Consultancy Services and Bharti Airtel as top three holdings in the portfolio.

Aditya Birla Sun Life Digital India Fund holds 35 stocks in its portfolio, with 81.66% exposure to technology stocks. Tata Digital India Fund has invested in total 35 stocks, majority of them are from technology sector, which is 77.58% of the equity of the portfolio. Both these funds have Infosys, Tata Consultancy Services and HCL Technologies as top 3 holdings.

Technology as a sector has been gaining momentum since the time of Corona Virus pandemic. Earlier technology was serving as an aid for betterment of life, but after pandemic technology has been connecting people and has become an integral part.

Technology mutual funds are sectoral equity mutual funds that invest primarily in stocks of information technology or related sectors without any bias to market cap. A sectoral mutual fund however will be concentrated with one to one sector, so if any things affects the overall sector, it would deeply impact the mutual funds performance. So beware of the caveat involved and therefore these funds are extremely high-risk-high-return investment proposition.

All the funds considered are growth direct plans, the returns are taken from ValueResearch.

Disclaimer

Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.