Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
IT funds paint a sorry picture as returns crash by 30% - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • May 31, 2000

    IT funds paint a sorry picture as returns crash by 30%

    The performance of software funds over the past 3 months has been rather dismal, and thatís putting it mildly. The 3-month returns of all IT funds have declined by at least 30% over the last 3 months.

    The technology, media, telecom (TMT) bloodbath in the stock markets has taken its toll on software funds. A study conducted by personalfn.com reveals that all software funds with a minimum 3-month history have registered an alarming fall of over 30%. The table below says it all.

    IT Schemes
    NAV (Rs) 3-month
    Chola Freedom Tech.
    Scheme (Cum.)
    14.0 -32.0%
    Tata IT Sector Fund 10.6 -45.2%
    UTI Sector Fund - Software 18.3 -46.4%
    Birla IT Fund (Gr.) 17.5 -46.4%
    KP Infotech
    Fund (Gr.)
    24.1 -48.7%
    Alliance New Millennium (Gr.) 7.0 -51.9%
    Magnum Sector Funds - IT Fund 12.5 -56.0%
    IL&FS eCOM (Gr.) 5.4 -60.2%

    Out of the 8 IT funds listed above, as many as 7 have witnessed an erosion of over 45% in their NAVs, with 3 of those 7 funds registering a decline of over 50%! And this only includes IT funds that are at least 3 months old. There are other IT funds with a history of less than 3 months and they have fared no better, as indicated by the table below.

    Open-ended IT Schemes NAV (Rs) 1-week 1-month growth
    K Tech 6.9 -4.6% -12.6%
    Pru ICICI Tech 5.1 -5.4% -22.7%
    DSP ML Technology.com 7.5 -8.9% NA



    Equitymaster requests your view! Post a comment on "IT funds paint a sorry picture as returns crash by 30%". Click here!


    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms