Jun 6, 2000|
IT funds back in the limelight
Software stocks have been a major beneficiary of the 260+ point rise in the BSE Sensex in the 3 days of the previous week. IT funds that had been languishing until then, seemed to have crawled back in the reckoning.
The markets seemed to have taken a fancy (for the umpteenth time) to technology, media, telecom (TMT) counters and this has spurred stocks like Infosys, Satyam, Mastek, Hughes Software, Zee Telefilms, Global Tele. And guess what – most mutual funds have these stocks in their portfolios. So we have witnessed IT funds’ net asset values (NAV) shooting up in the last week.
|IL&FS eCOM Fund (Gr)
|Alliance New Millenn (Gr)
|UTI Sector- Software
|Magnum Sector Funds-IT
|DSP ML Tech.com (Gr)
|Birla IT Fund (Gr)
|Pru ICICI Tech. (Gr)
|K P Infotech (Gr)
|Tata IT Sector Fund
|Chola Freedom Tech (Cum)
|K P Internet Opport.(Gr)
|Sun F&C Emerg Tech (Gr)
This is good news for IT fund investors, who haven’t seen growth of this magnitude in a while. However, that is not to say that the IT party has started once again and fund investors can leave all their worries behind. This may turn out to be another flash-in-the-pan rally. No one’s willing to comment on the surge in prices and there are no signs of any consensus. The rally is very short and we maintain our stand on IT funds i.e. there is yet too much uncertainty in TMT stocks and entry at current levels is not advisable. A balanced fund with under 30% exposure to TMT stocks or a FMCG fund are better options for investors looking for steady growth and lower volatility.
More Views on News
Mar 10, 2016
An opportunity to find an impeccably trustworthy and competent financial guardian is in the offing.
Feb 29, 2016
Most financial planners come out as whiz kids who throw around financial jargon. But financial planning can be actually easy, provided one follows a disciplined approach.
Feb 12, 2016
PersonalFN highlights the benefits of parking a portion of your expenses in e-wallets and using them efficiently.
Feb 2, 2016
Mutual funds take a bearish call on the FMCG sector. The sector has started playing out due to a combination of slower growth and expensive valuations.
Feb 1, 2016
Ethical practices help build long lasting relationships, and healthy long-term business relationships are often mutually rewarding. But PersonalFN is of the view that the financial services industry in India seems to have forgotten this.
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 21, 2017
Most Indians who cannot find jobs, look at becoming self-employed.
Aug 16, 2017
The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Aug 22, 2017
Post demonetisation, a cut in bank savings deposits rates was in the offing.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407