Table of Contents
Top 3 Equity - Sectoral Funds
Mutual Funds or stock markets directly – where to invest, is one of the oldest debates when it comes to personal Wealth Management. Mutual funds allow you to invest a certain amount in a fund where the fund managers use their expertise to invest a client’s money in a variety of stocks to achieve the highest rate of return. Investing in stock markets gives you greater control over the investment on shares is made by the user. However, it makes them more prone to risks as they have to directly deal with the markets.
When compared on a risk Factor, stocks happen to be far riskier than mutual funds. The risk in mutual funds is spread across and hence reduced with the pooling in of diverse stocks. With stock,s one has to extensive research before investing, especially if you are a novice investor. Visit fincash for more details on the various areas of investments. In the case of mutual funds, the research is done, and the fund is managed by a mutual fund manager.
This service though is not free and comes with an annual Management Fee that is charged by the fund house under Total Expense Ration (TER).
If you are a new investor with little or no experience in the financial markets, it is advisable to start with mutual funds as not only the risk is comparatively lesser but also because the decisions are made by an expert. These professionals have the insight to analyze and interpret financial data to gauge the outlook of a prospective investment.
Though you have to pay a fee to mutual fund managers unlike in the case of stocks that you buy individually, the Economies of Scale also come into play. It is true that active management of funds is an affair that does not come free of cost. But the truth is that due to their large size, mutual funds pay only a small fraction of the brokerage charges that an individual shareholder pays for brokerage. Individual investors also have to pay the charges for DEMAT which is not needed in the case of mutual funds.
It is already established that mutual funds have the advantage of reducing the risk by diversifying a Portfolio.
Stocks on the other hand are vulnerable to the Market conditions and the performance of one stock can’t compensate for the other.
Remember when investing in stocks, you will be liable to pay 15 percent tax on your short term Capital gains (STCG) if you sell your stocks within a span of one year. On the other hand, there is no tax on capital gains on the stocks that are sold by the fund. This can mean substantial benefits for you. The tax saved is also available for you to invest it further thus making way for further Income generation through investment. But you will have to hold on to your equity for more than a year in order to avoid paying that short-term capital gains tax.
Long Term Capital Gain (LTCG) is taxed at 10% for gains exceeding 1 Lakh gain (As announced in Budget of 2018). which means one has to pay tax on gains incurred in period over an year (Long term) if amount exceeds 1 Lakhs in a year at a Flat rate of 10%.
In the case of mutual funds, the decision pertaining to the choice of stocks and their trading is solely in the hands of the funds manager. You do not have control over which stock is to be picked and for what duration. As an investor, if you invest in Mutual Funds you do not have the option to exit from some stocks that are in your portfolio. The decisions pertaining to the fate of the stocks rest in the hands of the fund manager. This way, an individual investing in stocks has more control over their investment than an investor who invests in mutual funds.
A well-diversified portfolio should include at least 25 to 30 stocks but that would be a huge ask for a small investor. With mutual funds, investors with small funds can also get a diversified portfolio. Buying units of a fund allows you to invest in multiple stocks without having to invest a huge corpus.
Talk to our investment specialist
When you invest directly, you will need to invest a lot more time and research into your stock while in the case of mutual funds you can be passive. The fund manager is the one who invests his time to manage your portfolio.
With an investment in mutual funds, you have the benefit of a fund manager who has extensive expertise and experience in the field. Whether it is picking the stocks or monitoring them and making allocations, you do not have to worry about any of it. This service is not available in the case of stock investments. You are responsible for picking and tracking your investment.
When investing in mutual funds, remember that you will have to give the funds at least 8-10 years to generate good returns as these have a longer-term growth trajectory. In the case of stocks, you can get quick and good returns if you choose the right stocks and sell them at the right time.
Despite all of this if the stock market and its intricacies are something that an individual is familiar with, they can invest directly. They must be ready to play a long term game where a stock doesn’t provide immediate returns and must also have an increased appetite for risk. Unlike investors in mutual funds, they do not have the expertise on Smart investment which fund managers can provide. Even in the best of times, investment in stocks is a risk. In comparatively tougher times, it is better to invest in mutual funds due to the advantage of portfolio diversification, professional management and constant monitoring.
The choice between mutual funds or stocks generally boils down to personal factors like trust and an individual’s ability to take risks. It is a decision to be taken with the utmost of thought with all the options carefully weighed down. However what is important for an individual is the decision to plunge into personal wealth management and attempt to make their savings useful through either mutual funds or stocks, rather than simply sitting on it.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) ICICI Prudential Technology Fund Growth ₹132.02
↑ 2.80 ₹8,993 -1.1 3.4 -18.8 41 21.1 -23.2 TATA Digital India Fund Growth ₹31.373
↑ 0.65 ₹6,766 0.2 4.2 -18.3 35.9 20.9 -23.3 SBI Technology Opportunities Fund Growth ₹138.966
↑ 2.66 ₹2,862 0.1 7.8 -10.8 35.2 20.3 -15.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Mar 23
*Below is the list of best mutual funds based on 5 year CAGR/Annualized and AUM > 100 Crore.
To generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies. ICICI Prudential Technology Fund is a Equity - Sectoral fund was launched on 3 Mar 00. It is a fund with High risk and has given a Below is the key information for ICICI Prudential Technology Fund Returns up to 1 year are on The investment objective of the scheme is to seek long term capital appreciation by investing atleast 80% of its net assets in equity/equity related instruments of the companies in Information Technology Sector in India.However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.The Scheme does not assure or guarantee any returns. TATA Digital India Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has given a Below is the key information for TATA Digital India Fund Returns up to 1 year are on (Erstwhile SBI IT Fund) To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. SBI Technology Opportunities Fund is a Equity - Sectoral fund was launched on 9 Jan 13. It is a fund with High risk and has given a Below is the key information for SBI Technology Opportunities Fund Returns up to 1 year are on 1. ICICI Prudential Technology Fund
CAGR/Annualized
return of 11.8% since its launch. Ranked 37 in Sectoral
category. Return for 2022 was -23.2% , 2021 was 75.7% and 2020 was 70.6% . ICICI Prudential Technology Fund
Growth Launch Date 3 Mar 00 NAV (31 Mar 23) ₹132.02 ↑ 2.80 (2.17 %) Net Assets (Cr) ₹8,993 on 28 Feb 23 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk High Expense Ratio 2.07 Sharpe Ratio -0.77 Information Ratio 1.11 Alpha Ratio -3.44 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹11,768 31 Mar 20 ₹9,297 31 Mar 21 ₹21,561 31 Mar 22 ₹32,126 31 Mar 23 ₹26,086 Returns for ICICI Prudential Technology Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Mar 23 Duration Returns 1 Month -2% 3 Month -1.1% 6 Month 3.4% 1 Year -18.8% 3 Year 41% 5 Year 21.1% 10 Year 15 Year Since launch 11.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 -23.2% 2021 75.7% 2020 70.6% 2019 2.3% 2018 19.1% 2017 19.8% 2016 -4% 2015 3.9% 2014 26.3% 2013 62.6% Fund Manager information for ICICI Prudential Technology Fund
Name Since Tenure Vaibhav Dusad 2 May 20 2.83 Yr. Sharmila D’mello 30 Jun 22 0.67 Yr. Data below for ICICI Prudential Technology Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Technology 79.55% Communication Services 14.37% Industrials 2.44% Consumer Cyclical 1.4% Energy 0.5% Consumer Defensive 0.16% Financial Services 0% Asset Allocation
Asset Class Value Cash 1.57% Equity 98.43% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY32% ₹2,845 Cr 19,122,835
↓ -1,057,513 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 19 | TCS18% ₹1,653 Cr 4,989,650
↑ 91,102 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL8% ₹725 Cr 9,770,433
↑ 404,709 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 20 | HCLTECH8% ₹690 Cr 6,406,158
↑ 924,796 Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | 5327556% ₹557 Cr 5,062,315
↑ 2,003,665 Wipro Ltd (Technology)
Equity, Since 30 Sep 19 | 5076854% ₹364 Cr 9,400,348
↓ -1,793,463 LTIMindtree Ltd (Technology)
Equity, Since 31 Jul 16 | LTIM2% ₹164 Cr 347,476
↓ -40,000 Zee Entertainment Enterprises Ltd (Communication Services)
Equity, Since 31 Jan 22 | ZEEL1% ₹127 Cr 6,499,104
↑ 102,401 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 31 Jul 21 | CTSH1% ₹107 Cr 203,668 91 DTB 18052023
Sovereign Bonds | -1% ₹99 Cr 10,000,000
↑ 10,000,000 2. TATA Digital India Fund
CAGR/Annualized
return of 17.1% since its launch. Return for 2022 was -23.3% , 2021 was 74.4% and 2020 was 54.8% . TATA Digital India Fund
Growth Launch Date 28 Dec 15 NAV (31 Mar 23) ₹31.373 ↑ 0.65 (2.12 %) Net Assets (Cr) ₹6,766 on 28 Feb 23 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Risk High Expense Ratio 0 Sharpe Ratio -0.75 Information Ratio 0.31 Alpha Ratio -2.86 Min Investment 5,000 Min SIP Investment 150 Exit Load 0-3 Months (0.25%),3 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹12,360 31 Mar 20 ₹10,310 31 Mar 21 ₹21,403 31 Mar 22 ₹31,636 31 Mar 23 ₹25,860 Returns for TATA Digital India Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Mar 23 Duration Returns 1 Month -1.6% 3 Month 0.2% 6 Month 4.2% 1 Year -18.3% 3 Year 35.9% 5 Year 20.9% 10 Year 15 Year Since launch 17.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 -23.3% 2021 74.4% 2020 54.8% 2019 7.5% 2018 24.9% 2017 19.6% 2016 -6% 2015 2014 2013 Fund Manager information for TATA Digital India Fund
Name Since Tenure Meeta Shetty 9 Mar 21 1.98 Yr. Venkat Samala 26 Nov 20 2.26 Yr. Data below for TATA Digital India Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Technology 80.92% Communication Services 10.57% Industrials 4.12% Consumer Cyclical 1.6% Financial Services 0.63% Health Care 0.1% Consumer Defensive 0.09% Utility 0.02% Energy 0.01% Real Estate 0% Asset Allocation
Asset Class Value Cash 1.93% Equity 98.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 16 | INFY25% ₹1,664 Cr 11,184,598 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 16 | TCS19% ₹1,293 Cr 3,903,371 HCL Technologies Ltd (Technology)
Equity, Since 31 Jan 16 | HCLTECH9% ₹580 Cr 5,383,886 LTIMindtree Ltd (Technology)
Equity, Since 28 Feb 21 | LTIM8% ₹570 Cr 1,208,062
↑ 183,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 21 | BHARTIARTL7% ₹506 Cr 6,819,200 Tech Mahindra Ltd (Technology)
Equity, Since 30 Apr 16 | 5327556% ₹387 Cr 3,515,094
↑ 1,320,000 Wipro Ltd (Technology)
Equity, Since 31 Jul 18 | 5076852% ₹155 Cr 4,013,632 Persistent Systems Ltd (Technology)
Equity, Since 31 Jan 16 | PERSISTENT2% ₹136 Cr 282,812
↑ 3,600 Cyient Ltd (Industrials)
Equity, Since 28 Feb 21 | CYIENT2% ₹119 Cr 1,259,737 Coforge Ltd (Technology)
Equity, Since 28 Feb 23 | COFORGE2% ₹106 Cr 247,000
↑ 247,000 3. SBI Technology Opportunities Fund
CAGR/Annualized
return of 19.3% since its launch. Ranked 42 in Sectoral
category. Return for 2022 was -15.5% , 2021 was 66.4% and 2020 was 47.3% . SBI Technology Opportunities Fund
Growth Launch Date 9 Jan 13 NAV (31 Mar 23) ₹138.966 ↑ 2.66 (1.95 %) Net Assets (Cr) ₹2,862 on 28 Feb 23 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆ Risk High Expense Ratio 2.26 Sharpe Ratio -0.3 Information Ratio 0.88 Alpha Ratio 5.48 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹11,719 31 Mar 20 ₹10,196 31 Mar 21 ₹19,530 31 Mar 22 ₹28,224 31 Mar 23 ₹25,170 Returns for SBI Technology Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Mar 23 Duration Returns 1 Month -2.3% 3 Month 0.1% 6 Month 7.8% 1 Year -10.8% 3 Year 35.2% 5 Year 20.3% 10 Year 15 Year Since launch 19.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 -15.5% 2021 66.4% 2020 47.3% 2019 12.2% 2018 17.1% 2017 13% 2016 -3.3% 2015 2.4% 2014 29.2% 2013 Fund Manager information for SBI Technology Opportunities Fund
Name Since Tenure Saurabh Pant 1 Jan 22 1.16 Yr. Mohit Jain 1 Jan 22 1.16 Yr. Data below for SBI Technology Opportunities Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Technology 66.17% Communication Services 15.06% Consumer Cyclical 4.28% Industrials 2.42% Asset Allocation
Asset Class Value Cash 12.07% Equity 87.93% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY27% ₹774 Cr 5,200,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 06 | TCS15% ₹424 Cr 1,280,000
↑ 180,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL9% ₹260 Cr 3,500,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Mar 06 | HCLTECH6% ₹183 Cr 1,700,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 22 | 5327555% ₹141 Cr 1,280,000
↑ 450,000 Wipro Ltd (Technology)
Equity, Since 30 Apr 21 | 5076854% ₹119 Cr 3,080,000 Netflix Inc (Communication Services)
Equity, Since 31 Aug 21 | NFLX4% ₹101 Cr 38,000
↓ -9,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 22 | PERSISTENT3% ₹96 Cr 200,000 Microsoft Corp (Technology)
Equity, Since 31 Aug 20 | MSFT3% ₹79 Cr 38,000 PVR Ltd (Communication Services)
Equity, Since 31 Jan 22 | PVR2% ₹70 Cr 459,692
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Clarified my doubts