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.
|Chola Freedom Tech.
|Tata IT Sector Fund
|UTI Sector Fund - Software
|Birla IT Fund (Gr.)
|Alliance New Millennium (Gr.)
|Magnum Sector Funds - IT Fund
|IL&FS eCOM (Gr.)
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
|Pru ICICI Tech
|DSP ML Technology.com
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