Sectoral mutual fund.........tech

PROJECT TITLE:

COMPARATIVE STUDY OF TOP 5

SECTORAL(TECH) FUNDS IN INDIA

SUBMITTED TO: SUBMITTED BY:

DR. ANUBHA GUPTA GROUP-10

DEEPAK KUMAR [FT-10-844]

CHANDAN KUMAR [FT-10-842]

HARSH VARDHAN [FT-10-858]

SHEKHAR MITTAL [FT-10-944]

SHUBHADIP BISWAS [FT-10-948]

SUPARAG MISHRA [FT-10-959]

PGDM 10-12

IILM-GSM

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any

task of dream would be incomplete without mentioning the name of the people

whose constant guidance and encouragement has crowned all our efforts with

success.

Firstly we would like to thank DR. ANUBHA GUPTA for giving us her precious

time, encouragement and guidance that helped us a lot to making this project

compact and meaningful.

Last but not least we would like to thank all those people for their immense

cooperation who encouraged us in any way and without support of those people

this project never be completed successfully.

Most specially a special thanks to our family and friends.

EXECUTIVE SUMMARY

The mere words bring strong memories for investors, from the euphoria during the off-the-charts

growth of the late 1990s to widespread despair during the subsequent tech meltdown between

2000 and 2002.

Virtually all technology funds are stock or equities-only funds, and the majority of them fall into

the growth fund category in the Morningstar style box. These funds will invest in a wide range of

technology-related companies, including anything associated with the research, development and

the use of computers, software, communications, the internet, semiconductors or any other

segment of technology. Biotechnology funds are usually included in the healthcare sector,

although they can sometimes fall into the tech sector as well. As with most other types of funds,

tech funds can also be either domestic or global with regards to what securities are eligible for

purchase.

Technology is likely to be a big theme for 2011. Funds focusing on the Information Technology

sector have topped the list for the equity segment in the month of December-2010. However,

none of the best performing technology funds were able to deliver better returns than BSE IT

Index or CNX IT Index in December. In april-2011, the BSE IT Index and CNX IT Index gave

8.93% and 10.22% respectively.

The top performing tech fund in April-2011 is ICICI PRUDENTIAL TECHNOLOGY FUND

with a Month-to-Date (MTD) performance of 9.60% and a Year to Date (YTD) performance of

30.90%.

TOP FIVE TECH FUNDS IN INDIA-

ICICI Pru Technology Fund (G)

Franklin Infotech Fund - (G)

SBI Magnum SFU - Infotech Fund

Birla Sun Life New Millennium

DSP BR Technology.com (G)

The total traded value for the last six months of all CNX IT Index constituents is approximately

5.88% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about

10.22% of the free float market capitalization as on March 31, 2011.

InfoTech Funds category gained 1.60% over one week period ended 4 March 2011. SBI Magnum

SFU – InfoTech Fund was the top gainer with a return of 1.95%.

Mutual Funds

Mutual fund schemes may be classified on the basis of its structure and its investment objective.

By Structure:

Open-ended Funds

An open-end fund is one that is available for subscription all through the year. These do

not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset

Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Closed-ended Funds

A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15

years. The fund is open for subscription only during a specified period.

Interval Funds

Interval funds combine the features of open-ended and close-ended schemes. They are

open for sale or redemption during pre-determined intervals at NAV related prices.

By Investment Objective:-

Growth Funds

The aim of growth funds is to provide capital appreciation over the medium to long-

term. Such schemes normally invest a majority of their corpus in equities

Income Funds

The aim of income funds is to provide regular and steady income to investors. Such

schemes generally invest in fixed income securities such as bonds, corporate debentures

and Government securities. Income Funds are ideal for capital stability and regular

income.

Balanced Funds

The aim of balanced funds is to provide both growth and regular income. Such schemes

periodically distribute a part of their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents

Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital and

moderate income. These schemes generally invest in safer short-term instruments such as

treasury bills, certificates of deposit, commercial paper and inter-bank call money

Load Funds

A Load Fund is one that charges a commission for entry or exit. That is, each time you

buy or sell units in the fund, a commission will be payable. Typically entry and exit loads

range from 1% to 2%. It could be worth paying the load, if the fund has a good

performance history

Special Schemes

Industry Specific Schemes

Industry Specific Schemes invest only in the industries specified in the offer document.

The investment of these funds is limited to specific industries like InfoTech, FMCG, and

Pharmaceuticals etc

Index Schemes

Index Funds attempt to replicate the performance of a particular index such as the BSE

Sensex or the NSE 50

Sectoral Schemes

Sectoral Funds are those, which invest exclusively in a specified industry or a group of

industries or various segments such as 'A' Group shares or initial public offerings.

RISK HIERARCHY OF MUTUAL FUNDS:

SECTORAL MUTUAL FUNDS:

Sector mutual funds are those mutual funds that restrict their investments to a particular segment

or sector of the economy. Also known as thematic funds, these funds concentrate on one industry

such as infrastructure, banking, technology, energy, real estate, power heath care, FMCG,

pharmaceuticals etc. The idea is to allow investors to place bets on specific industries or sectors,

which have strong growth potential.

These funds tend to be more volatile than funds holding a diversified portfolio of securities in

many industries. Such concentrated portfolios can produce tremendous gains or losses,

depending on whether the chosen sector is in or out of favor. Sectoral mutual funds come in the

high risk high reward category and are not suitable for investors having low risk appetite.

Generally, mutual fund houses avoid launching sectoral funds as they are seasonal in nature and

do well only in cycles. Since these funds focus on just one sector of the economy, they limit

diversification and the fund manager’s ability to capitalize on other sectors, if the specific sectors

aren’t doing well. Unless a particular sector is doing very well and its long term growth

prospects look bright, it advisable not to trade in sector funds.

TECHNOLOGY FUND:

The mere words bring strong memories for investors, from the euphoria during the off-the-

charts growth of the late 1990s to widespread despair during the subsequent tech meltdown

between 2000 and 2002.

Technology is such an integral part of all aspects of our daily lives that the sector is virtually

certain to have more days in the sun. Despite this, many investors still look at mutual funds that

concentrate in this sector with great suspicion, wondering if the bottom might fall out on them

again. This article will examine the nature and composition of technology funds, as well as how

they performed both before and after the market downturn in 2000.

Virtually all technology funds are stock or equities-only funds, and the majority of them fall into

the growth fund category in the Morningstar style box. These funds will invest in a wide range of

technology-related companies, including anything associated with the research, development and

the use of computers, software, communications, the internet, semiconductors or any other

segment of technology. Biotechnology funds are usually included in the healthcare sector,

although they can sometimes fall into the tech sector as well. As with most other types of funds,

tech funds can also be either domestic or global with regards to what securities are eligible for

purchase.

Although there are exceptions, most technology funds tend to seek companies that fall into one

of two categories. The first category is made up of larger, more established technology

companies that have strong cash flow and substantial market share. The second is companies

(usually smaller ones) that have developed new ideas or patents that analysts believe will provide

significant potential for growth. The volatility inherent in this sector often results in high

portfolio turnover, which is usually greater than that of funds in other sectors, such as energy or

consumer staples.

PRESENT SCENARIO OF TECH FUND IN INDIA:

Technology is likely to be a big theme for 2011. Funds focusing on the Information Technology

sector have topped the list for the equity segment in the month of December-2010. However,

none of the best performing technology funds were able to deliver better returns than BSE IT

Index or CNX IT Index in December. In april-2011, the BSE IT Index and CNX IT Index gave

8.93% and 10.22% respectively.

Despite US Congress signing a bill to tax outsourcing services which is expected to increase

expenses of Indian IT companies, the IT sector stocks have performed well as the market is

expecting good quarterly results.



30.90%.

TOP FIVE TECH FUNDS IN INDIA:

Name NAV(Rs.) 1w % 3m % 6m % 1y % 3y %

ICICI Pru Technology Fund (G) 19.9 1.6 3.9 7.2 30.9 15.5

Franklin Infotech Fund - (G) 70.5 0.4 3.2 6.3 21.9 23.6

SBI Magnum SFU - Infotech Fund 24.6 0.5 2.6 3.2 19.8 10.2

Birla Sun Life New Millennium 20.9 0.5 [1.2] [3.9] 7.2 5.2

DSP BR Technology.com (G) 33.6 0.9 [1.1] [6.3] 2.1 8.9

1. ICICI Pru Technology Fund (G):

Fund Name : ICICI Prudential Mutual Fund

Scheme Name : ICICI Pru Technology Fund

(G)

AMC : ICICI Prudential Asset

Management Co Ltd

Type : Open

Category : Equity - InfoTech

Launch Date : 07-Jan-00

Fund

Manager : Mrinal Singh

Net Assets

(Rs. cr) : 117.08

NAV Details

NAV Date : 13-Apr-11

NAV [Rs.] : 19.9

Buy/Resale Price [Rs.] : 19.69

Sell/Repurchase Price [Rs.] : 19.89

Entry Load % : Nil

Exit Load % : NIL

NAV CHART

PERFORMANCE(%)

* returns above 1 yr. are annualized

1w 1m 3m 6m 1y 3y 5y Since

INC

Scheme Returns 1.6 9.6 3.9 7.2 30.9 15.5 12.6 6.4

Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8

Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6

Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4

LATEST PAYOUTS

Dividends Bonus

Ratio NA NA

Date NA NA

INVESTMENT DETAILS

Tax Benefits : 54EA

Min. Investment(Rs.) : 5,000.00

Increm.Investment(Rs.) : 500.00

IN & OUT

In

Name of the Company No of shares

Oracle Fin.Serv. 19,740

Out


No investments sold out

FUND HOLDINGS

As on 28-Feb-2011

Asset Type Instrument Name Industry Net

Assets

(%)

No of

Shares

Mkt

Value

(Cr.)

Equity & Equity related Investments

Equity infosys technologies ltd IT - Software 49.0 NA NA

Equity tata consultancy services ltd IT - Software 15.2 NA NA

Equity eclerx services ltd IT - Software 14.4 NA NA

Equity nucleus software exports ltd IT - Software 3.0 NA NA

Equity wipro ltd IT - Software 2.9 NA NA

Equity infinite computer solutions (India) ltd IT - Software 2.7 NA NA

Equity infotech enterprises ltd IT - Software 2.1 NA NA

Equity hcl infosystems ltd IT -

Hardware

1.5 NA NA

Equity quality assurance institute (i) ltd Unspecified

Sector

0.8 NA NA

Equity sip technologies and exports ltd IT - Software 0.0 NA NA

Derivative Investments

Derivatives -

Stock Future

infosys technologies ltd - futures -/- 4.0 NA NA

Cash & Cash Equivalent

Net CA &

Others

short term debt and other current assets -/- 4.5 NA NA

2. FRANKLIN INFOTECH FUND - (G):

Fund Name : Franklin Templeton Mutual

Fund

Scheme

Name : Franklin InfoTech Fund - (G)

AMC : Franklin Templeton Asset

Management (I) Pvt.Ltd.

Type : Open

Category : Equity - InfoTech

Launch Date : 10-Aug-98

Fund

Manager : Anand Radhakrishnan

Net Assets

(Rs. cr) : 152.71

NAV DETAILS


NAV [Rs.] : 70.5



Entry Load % : NIL

Exit Load % :

1% if redeemed /

switched within 3

years of allotment.

NAV CHART:

PERFORMANCE(%)



INC

Scheme Returns 0.4 8.3 3.2 6.3 21.9 23.6 11.6 23.6

Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8

Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6

Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4

LATEST PAYOUTS

Dividends Bonus

Ratio NA 1 : 1

Date NA 11-Jan-00

INVESTMENT DETAILS

Tax Benefits : 54EA


Increm.Investment(Rs.) : 1,000.00

IN & OUT

In


No fresh investments made in

Out


No investments sold out

FUND HOLDINGS

As on 28-Feb-2011


Assets

(%)

No of

Shares

Mkt

Value

(Cr.)


Equity infosys IT -

Software

50.1 240,000 72.1

Equity tcs IT -

Software

25.5 330,000 36.7

Equity wipro IT -

Software

9.6 316,666 13.9

Equity oracle financial services software IT -

Software

3.4 24,000 4.9

Equity infotech enterprises IT -

Software

2.2 200,000 3.2

Equity eclerx services IT -

Software

1.8 40,000 2.6

Equity firstsource solutions IT -

Software

0.5 400,000 0.6

Equity mphasis IT -

Software

0.3 10,000 0.4

Equity mindtree IT -

Software

0.3 10,000 0.4

Equity mastek IT -

Software

0.1 15,000 0.2

Equity intrasoft technologies IT -

Software

0.1 17,500 0.1

Equity collabera solutions IT -

Software

0.0 NA 0.0


Net CA &

Others

other current assets -/- 6.0 NA 8.7

3. SBI MAGNUM SFU - INFOTECH FUND:

Fund Name : SBI Mutual Fund

Scheme Name : SBI Magnum SFU - Infotech

Fund

AMC : SBI Funds Management Ltd

Type : Open

Category : Equity - Infotech

Launch Date : 04-Jun-99

Fund Manager : Ms. Sohini Andani

Net Assets (Rs.

cr) : 50.11

NAV DETAILS


NAV [Rs.] : 24.6



Entry Load % : Nil

Exit Load % : NIL

NAV CHART

PERFORMANCE(%)



INC

Scheme Returns 0.5 7.5 2.6 3.2 19.8 10.2 8.1 10.5

Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8

Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6

Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4

LATEST PAYOUTS

Dividends Bonus

Ratio 40 % NA

Date 29-Jun-07 NA

INVESTMENT DETAILS

Tax Benefits : 54EA


Increm.Investment(Rs.) : 500.00

IN & OUT

In


Wipro 20,010

Out


Polaris Soft. 112,035

Sasken Comm.Tec. 5,875

FUND HOLDINGS

As on 28-Feb-2011


Assets

(%)

No of

Shares

Mkt

Value

(Cr.)


Equity infosys technologies limited IT -

Software

50.9 80,160 24.1

Equity tata consultancy services ltd. IT -

Software

17.5 74,391 8.3

Equity infotech enterprises limited IT -

Software

5.7 169,006 2.7

Equity kpit cummins infosystems ltd. IT -

Software

5.6 180,259 2.6

Equity polaris software IT -

Software

4.3 112,035 2.0

Equity hcl technologies limited IT -

Software

3.7 39,545 1.7

Equity cmc ltd. IT -

Hardware

3.4 8,080 1.6

Equity niit limited Computer

Education

2.4 231,248 1.1

Equity oracle financial services software IT -

Software

2.2 4,992 1.0

Equity redington (india) ltd. IT -

Hardware

2.1 130,099 1.0

Equity persistent systems limited IT -

Software

2.0 24,984 0.9

Equity sasken communication technologies l IT -

Software

0.2 5,875 0.1


Cash & Bank

Balance & Bank

Deposits

cash & current assets -/- 0.0 NA 0.0

4. BIRLA SUN LIFE NEW MILLENNIUM

Fund Name : Birla Sun Life Mutual Fund

Scheme Name : Birla Sun Life New

Millennium Fund (G)

AMC : Birla Sunlife Asset

Management Company Ltd

Type : Open


Launch Date : 15-Dec-99

Fund

Manager : Atul Penkar

Net Assets

(Rs. cr) : 60.62

NAV DETAILS


NAV [Rs.] : 20.9



Entry Load % : NIL

Exit Load % :

For Purchase/switch in of units below Rs.

5 crore in value, an exit load of 1% is

payable if the units are

Redeemed/switched out within 3 years

from the date of allotment. For Purchase /

Switch in of units, equal to or greater than

5 crores in value, no exit load is payable.

NAV CHART

PERFORMANCE(%)



INC

Scheme Returns 0.5 8.3 [1.2] [3.9] 7.2 5.2 7.1 6.8

Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8

Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6

Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4

LATEST PAYOUTS

Dividends Bonus

Ratio NA NA

Date NA NA

INVESTMENT DETAILS

Tax Benefits : 54EA


Increm.Investment(Rs.)

: 1,000.00

IN & OUT

In



Out


Infotech Enterp. 0

Persistent Sys 0

FUND HOLDINGS

As on 28-Feb-2011

Asset

Type

Instrument Name Industry Net

Assets

(%)

No of

Shares

Mkt

Value

(Cr.)


Equity infosys technologies ltd. IT - Software 36.9 NA NA

Equity tata consultancy services ltd. IT - Software 12.6 NA NA

Equity wipro ltd. IT - Software 6.5 NA NA

Equity bharti airtel ltd. Telecomm-Service 6.0 NA NA

Equity hcl technologies ltd. IT - Software 5.7 NA NA

Equity polaris software lab ltd. IT - Software 4.2 NA NA

Equity oracle financial services software ltd. IT - Software 3.9 NA NA

Equity educomp solutions ltd. Computer Education 3.8 NA NA

Equity dq entertainment international ltd. Entertainment 2.8 NA NA

Equity d.b. corp ltd. Entertainment 2.7 NA NA

Equity hindustan media ventures ltd. Media -

Print/Television/Radio

2.1 NA NA

Equity subex ltd. IT - Software 2.1 NA NA

Equity infotech enterprises ltd. IT - Software 2.0 NA NA

Equity allied digital services ltd. IT - Software 2.0 NA NA

Equity megasoft ltd. IT - Software 1.1 NA NA

Equity persistent systems ltd IT - Software 0.1 NA NA

Equity magnasound india ltd. Media &

Entertainment

0.0 NA NA


Cash &

Cash

Equivalent

cash & cash equivalents -/- 5.6 NA NA

Net CA &

Others

net receivables / payables -/- [0.1] NA NA

5. DSP BR TECHNOLOGY.COM (G):

Fund Name : DSP BlackRock Mutual Fund

Scheme

Name : DSP BR Technology.com (G)

AMC : DSP BlackRock Asset

Management Company Ltd

Type : Open


Launch Date : 11-Mar-00

Fund

Manager : Apoorva Shah

Net Assets

(Rs. cr) : 67.38

NAV DETAILS


NAV [Rs.] : 33.6



Entry Load % : NIL

Exit Load % :

1% of the

applicable NAV

if redeemed or

switched out.

NAV CHART

PERFORMANCE(%)



INC

Scheme Returns 0.9 7.9 [1.1] [6.3] 2.1 8.9 14.2 11.7

Category Avg 0.8 8.3 1.5 1.3 16.4 12.7 10.7 11.8

Category Best 1.6 9.6 3.9 7.2 30.9 23.6 14.2 23.6

Category Worst 0.4 7.5 [1.2] [6.3] 2.1 5.2 7.1 6.4

LATEST PAYOUTS

Dividends Bonus

Ratio NA NA

Date NA NA

INVESTMENT DETAILS

Tax Benefits : 54EA


Increm.Investment(Rs.) : 1,000.00

IN & OUT

In



Out


Nucleus Soft. 47,343

FUND HOLDINGS

As on 28-Feb-2011

Asset

Type

Instrument Name Industry Net

Assets

(%)

No of

Shares

Mkt

Value

(Cr.)


Equity infosys technologies IT - Software 25.8 56,030 16.8

Equity tata consultancy services IT - Software 13.4 78,352 8.7

Equity hcl technologies IT - Software 7.5 110,727 4.9

Equity wipro IT - Software 5.7 84,130 3.7

Equity oracle financial services software IT - Software 5.3 16,938 3.5

Equity take solutions IT - Software 4.6 949,903 3.0

Equity cmc IT - Hardware 4.4 14,401 2.9

Equity niit technologies IT - Software 4.3 141,280 2.8

Equity allied digital services IT - Software 3.7 266,368 2.4

Equity entertainment network (india) Entertainment 2.6 80,672 1.7

Equity hindustan media ventures Media -


2.4 104,080 1.5

Equity ht media Media -


2.3 110,923 1.5

Equity zee entertainment enterprises Entertainment 2.2 120,722 1.4

Equity bharti airtel Telecomm-Service 2.1 41,751 1.4

Equity tulip telecom Telecomm-Service 1.8 80,138 1.2

Equity kpit cummins infosystems IT - Software 1.7 74,397 1.1

Equity hathway cable & datacom Entertainment 1.0 52,342 0.6

Equity idea cellular Telecomm-Service 0.7 80,069 0.5

Equity nucleus software exports IT - Software 0.6 47,343 0.4

Equity info edge (india) Miscellaneous 0.5 5,792 0.3

Equity niit Computer Education 0.5 59,736 0.3

Equity eclerx services IT - Software 0.3 3,013 0.2

Equity hinduja global solutions IT - Software 0.1 2,204 0.1

Equity city online services Miscellaneous 0.0 NA NA


Net CA

&

Others

net receivable/payable -/- 5.1 NA 3.3

CBLO cblo / reverse repo investments UR / N.A. 1.5 NA 1.

COMAPRISON OF RETURN IN ONE YEAR:

COMPARISON OF NET ASSET VALUE:

COMPARISON OF NET ASSET:

30.9

21.9

19.8

7.2

2.1

ICICI PRU

FRANKLIN INFOTECH

SBI MAGNUM

BIRLA SUNLIFE

DSP BR

RETURN IN 1 YEAR

RETURN IN 1 YEAR

19.9

70.5

24.6

20.9

33.6

ICICI PRU

FRANKLIN INFOTECH

SBI MAGNUM

BIRLA SUNLIFE

DSP BR

NET ASSET VALUE

NET ASSET VALUE

117.08

152.71

50.11

60.62

67.38

ICICI PRU

FRANKLIN INFOTECH

SBI MAGNUM

BIRLA SUNLIFE

DSP BR

NET ASSET IN CR.

NET ASSET IN CR.

COMPARISON IN MARKET CAPITALISATION:

ICICI PRUDENTIAL TECHNOLOGY FUND

Giant- 72.29%

Large- 3.81%

Medium 0.0%

Small 16.28%

Micro -7.62%

FRANKLIN INFOTECH FUND

Giant -91.49%

Large- 3.3%

Medium- 0.29%

Small- 4.29%

Micro- 0.63%

SBI MAGNUM INFOTECH

Giant- 76.49%

Large- 6.16%

Medium- 4.88%

Small -12.46%

Micro- 0.0%

BIRLA SUN LIFE NEW MILLENNIUM FUND

Giant- 70.56%

Large- 9.75%

Medium- 6.18%

Small -6.09 %

Micro -7.43%

DSP BLACKROCK TECHNOLOGY.COM

Giant- 54.14%

Large- 11.39%

Medium- 10.19%

Small -15.78%

Micro -8.5%

CONCLUSION

Return of InfoTech funds in April-2010 is 3.64%. It was just behind of banking funds with return

of 6.26%. And in YTD return this sector was in second position with return of 98.31%. It was

just behind of pharma funds [112.67%].

Large IT companies have seen a robust revival in volumes and reasonable price stability this

year, as client IT spends have revived and key pressure points witnessed some easing.

These helped companies such as Infosys, TCS, and HCL Tech deliver returns in the 23-56 per

cent range; Wipro has been somewhat sedate, returning just 12 per cent. It was substantial

exposure to these stocks that helped ICICI Technology and Franklin InfoTech outperform.



30.90%.They are 10% ahead of second ranker FRANKLIN INFOTECH with a YTD

performance of 21.9.

Net Asset Value[NAV] of FRANKLIN INFOTECH [70.5] is highest among all the tech funds.

But they are not getting desire result. If we see the NAV chart of FRAKLIN INFOTECH of last

3 years, it is showing a rapid growth in NAV in comparison with others.

One thing we have noticed that all the tech funds have invested in INFOSYS,TCS and WIPRO

and HCL TECH because of their growth in IT sector. Recently HCL Tech and Infosys have gone

up 2% in BSE IT INDEX.

There is a tremendous possibility of growth in technology sector in 2011. Information

Technology (IT) industry has played a major role in the Indian economy during the last few

years. A number of large, profitable Indian companies today belong to the IT sector and a great

deal of investment interest is now focused on the IT sector.

The total traded value for the last six months of CNX IT Index stocks is approximately 59.93%

of the traded value of the IT sector. CNX IT Index stocks represent about 75.15 % of the free

float market capitalization of the IT sector as on March 31, 2011.

The total traded value for the last six months of all CNX IT Index constituents is approximately

5.88% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about

10.22% of the free float market capitalization as on March 31, 2011.

InfoTech Funds category gained 1.60% over one week period ended 4 March 2011. SBI

Magnum SFU – InfoTech Fund was the top gainer with a return of 1.95%.

______________________________________________________________________________

Business

Sectoral mutual fund.........tech