Table of Contents
- Risk in SIP: Assessment of SIP Risks
- Risk 1: The risk of SIP getting a negative return or price risk
- Risk 2: The risk being able to get your money back quickly or liquidity risk
- Risk 3: The risk of downgrade of a security or credit risk
- Risk 4: The risk of the company not paying the owners of the bond their due or default risk
- Risk 5: The risk of processing your transaction correctly or technology risk
- Risk 6: The risk of scheme performance by the portfolio manager or fund management risk
Top 5 Funds
Risk in SIP: Assessment of Risk in SIP Investment
The risk in SIP varies for different Types of Mutual Funds. investing in Mutual Funds via SIP (Systematic Investment plan) involves market linked risks, that are certainly higher for Equity Funds than debt and balanced Mutual Funds. The risk in SIP depends on the investment option that is chosen considering the risk profile, risk appetite and liquidity. However, the risk in SIP can be managed and reduced by the fund managers and the fund house.
To calculate the risk in SIP there are various tools available like sip calculator (also known as SIP return calculator).
Risk in SIP: Assessment of SIP Risks
Risk 1: The risk of SIP getting a negative return or price risk
Mutual fund investments are subject to market risks, is a commonly heard term. What this means is that your investment in a SIP can go down and you can end up with a value lower than what you invested depending on how the market behaves.
The risk in SIP is however related to the holding period and usually, the longer the holding period, the lower the risk. With higher holding period the probability of making profit increases. For e.g. have a look below for equity, a longer holding period for equity results in a lowering chance of loss. (The below is an analysis done on the BSE Sensex from 1979 to 2016).
Risk 2: The risk being able to get your money back quickly or liquidity risk
The ability to get your money back quickly depends on the underlying investments. Usually with mutual funds, this is not an issue, however, there have been periods (such in 2008), when there was an issue in selling securities(Bonds) and that certain mutual funds had to limit withdrawals from some schemes. The equity market is fairly liquid (meaning that buying and selling do not pose an issue). However, if the sale quantity exceeds the numbers of buyers by a large amount, then this will result in an issue, hence making subsequent payouts a problem and hence liquidity risk.
Risk 3: The risk of downgrade of a security or credit risk
When the bond of a particular company/entity undergoes a downgrade by a credit rating agency, its price falls. If the price falls, this impacts the overall value of the portfolio. This is called credit risk.
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Risk 4: The risk of the company not paying the owners of the bond their due or default risk
When a company defaults on its payments to the bond holders, it’s called Default Risk.
With the investor not getting their money back, this will impact their portfolio, negatively.
Risk 5: The risk of processing your transaction correctly or technology risk
Today, all transactions take place in the electronic mode. With the various touch-points, there is a possibility of a technological failure at various places, at the R & T Agent, the Bank to debit funds etc.
The non-processing of a transaction is also a risk in SIP.
Risk 6: The risk of scheme performance by the portfolio manager or fund management risk
Another risk in SIP is that the chosen scheme may not deliver upto expectations, and performance may be much lower than expected. The Fund Manager may under-deliver on performance, and this will lead to low returns on the SIP investment.
These are the major risks in a SIP, while we can go on and elaborate further risks in SIP like Economy risk etc., most of these risks would fall under one or more of the categories above.
Though there is definitely a risk in SIP, one should always remember that SIP or lump sum, this is just an investment route and NOT the underlying investment. One needs to look at the underlying investment, its risks, and then make a final decision.
*Below is the list of Top SIP's one can evaluate to invest in
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 (Erstwhile Aditya Birla Sun Life New Millennium Fund) A multi-sector open-ended growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. The secondary objective is income generation and distribution of dividend. Aditya Birla Sun Life Digital India Fund is a Equity - Sectoral fund was launched on 15 Jan 00. It is a fund with High risk and has given a Below is the key information for Aditya Birla Sun Life Digital India 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 (Erstwhile Kotak Midcap Scheme) The investment objective of the Scheme is to generate capital appreciation from a diversified portfolio of equity and equity related securities. Kotak Small Cap Fund is a Equity - Small Cap fund was launched on 24 Feb 05. It is a fund with Moderately High risk and has given a Below is the key information for Kotak Small Cap Fund Returns up to 1 year are on 1. ICICI Prudential Technology Fund
CAGR/Annualized return of 13.7% since its launch. Ranked 37 in Sectoral category. Return for 2020 was 70.6% , 2019 was 2.3% and 2018 was 19.1% . ICICI Prudential Technology Fund
Growth Launch Date 3 Mar 00 NAV (03 Dec 21) ₹163.02 ↓ -1.00 (-0.61 %) Net Assets (Cr) ₹6,887 on 31 Oct 21 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk High Expense Ratio 2.53 Sharpe Ratio 4.5 Information Ratio 0.5 Alpha Ratio 29.87 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 30 Nov 16 ₹10,000 30 Nov 17 ₹11,642 30 Nov 18 ₹14,597 30 Nov 19 ₹14,571 30 Nov 20 ₹22,704 30 Nov 21 ₹41,805 Returns for ICICI Prudential Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 21 Duration Returns 1 Month 1.3% 3 Month 6.3% 6 Month 38.3% 1 Year 81.5% 3 Year 42.1% 5 Year 33.6% 10 Year 15 Year Since launch 13.7% Historical performance (Yearly) on absolute basis
Year Returns 2020 70.6% 2019 2.3% 2018 19.1% 2017 19.8% 2016 -4% 2015 3.9% 2014 26.3% 2013 62.6% 2012 17.1% 2011 -18.9% Fund Manager information for ICICI Prudential Technology Fund
Name Since Tenure Priyanka Khandelwal 8 Jul 20 1.32 Yr. Vaibhav Dusad 2 May 20 1.5 Yr. Data below for ICICI Prudential Technology Fund as on 31 Oct 21
Equity Sector Allocation
Sector Value Technology 82.78% Communication Services 10.49% Industrials 3.45% Consumer Cyclical 0.43% Consumer Defensive 0.09% Asset Allocation
Asset Class Value Cash 2.77% Equity 97.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY22% ₹1,494 Cr 8,957,330
↑ 1,831,327 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 19 | TCS9% ₹646 Cr 1,901,982
↑ 470,000 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 20 | HCLTECH9% ₹636 Cr 5,560,768
↑ 904,224 Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | 5327559% ₹611 Cr 4,132,059
↑ 107,956 Persistent Systems Ltd (Technology)
Equity, Since 31 May 20 | PERSISTENT6% ₹401 Cr 1,022,168
↑ 151,873 Mphasis Ltd (Technology)
Equity, Since 30 Jun 20 | 5262994% ₹301 Cr 928,928
↑ 302,772 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL4% ₹249 Cr 3,630,200
↑ 410,379 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 31 Jul 21 | CTSH3% ₹236 Cr 404,000
↑ 194,000 Wipro Ltd (Technology)
Equity, Since 30 Sep 19 | 5076853% ₹180 Cr 2,777,397
↑ 955,947 eClerx Services Ltd (Technology)
Equity, Since 31 Aug 20 | 5329272% ₹166 Cr 759,028
↑ 205,808 2. Aditya Birla Sun Life Digital India Fund
CAGR/Annualized return of 12.8% since its launch. Ranked 33 in Sectoral category. Return for 2020 was 59% , 2019 was 9.6% and 2018 was 15.6% . Aditya Birla Sun Life Digital India Fund
Growth Launch Date 15 Jan 00 NAV (03 Dec 21) ₹140.42 ↓ -0.81 (-0.57 %) Net Assets (Cr) ₹2,658 on 31 Oct 21 Category Equity - Sectoral AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆ Risk High Expense Ratio 2.56 Sharpe Ratio 4.5 Information Ratio 0.99 Alpha Ratio 24.75 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 16 ₹10,000 30 Nov 17 ₹12,026 30 Nov 18 ₹14,725 30 Nov 19 ₹15,720 30 Nov 20 ₹22,790 30 Nov 21 ₹40,612 Returns for Aditya Birla Sun Life Digital India Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 21 Duration Returns 1 Month 3.2% 3 Month 6.7% 6 Month 32.8% 1 Year 76.7% 3 Year 40.5% 5 Year 33% 10 Year 15 Year Since launch 12.8% Historical performance (Yearly) on absolute basis
Year Returns 2020 59% 2019 9.6% 2018 15.6% 2017 22.4% 2016 -3.5% 2015 11.2% 2014 21.1% 2013 50.2% 2012 3.7% 2011 -21.8% Fund Manager information for Aditya Birla Sun Life Digital India Fund
Name Since Tenure Kunal Sangoi 15 Jan 14 7.8 Yr. Data below for Aditya Birla Sun Life Digital India Fund as on 31 Oct 21
Equity Sector Allocation
Sector Value Technology 75.71% Communication Services 11.94% Industrials 5.85% Consumer Cyclical 1.7% Asset Allocation
Asset Class Value Cash 4.79% Equity 95.21% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 05 | INFY18% ₹477 Cr 2,859,816
↑ 255,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 05 | TCS11% ₹291 Cr 856,472
↑ 40,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 13 | 5327559% ₹252 Cr 1,704,943
↑ 115,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Dec 10 | HCLTECH8% ₹225 Cr 1,963,931
↑ 50,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 19 | BHARTIARTL6% ₹161 Cr 2,351,670
↓ -100,000 Cyient Ltd (Industrials)
Equity, Since 31 May 14 | CYIENT4% ₹105 Cr 980,651
↑ 25,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 13 | PERSISTENT4% ₹100 Cr 255,726
↓ -5,739 Wipro Ltd (Technology)
Equity, Since 31 Jan 21 | 5076853% ₹88 Cr 1,356,888
↑ 280,000 Mphasis Ltd (Technology)
Equity, Since 29 Feb 20 | 5262993% ₹80 Cr 247,470
↑ 40,000 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 31 Mar 21 | 5400052% ₹65 Cr 96,710 3. TATA Digital India Fund
CAGR/Annualized return of 25.4% since its launch. Return for 2020 was 54.8% , 2019 was 7.5% and 2018 was 24.9% . TATA Digital India Fund
Growth Launch Date 28 Dec 15 NAV (03 Dec 21) ₹38.2451 ↓ -0.30 (-0.78 %) Net Assets (Cr) ₹3,842 on 31 Oct 21 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Risk High Expense Ratio 1.73 Sharpe Ratio 4.16 Information Ratio 0.39 Alpha Ratio 23.32 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-3 Months (0.25%),3 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 16 ₹10,000 30 Nov 17 ₹11,715 30 Nov 18 ₹15,384 30 Nov 19 ₹16,052 30 Nov 20 ₹22,527 30 Nov 21 ₹41,361 Returns for TATA Digital India Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 21 Duration Returns 1 Month 1.4% 3 Month 6.3% 6 Month 37.4% 1 Year 82.4% 3 Year 39.4% 5 Year 33.5% 10 Year 15 Year Since launch 25.4% Historical performance (Yearly) on absolute basis
Year Returns 2020 54.8% 2019 7.5% 2018 24.9% 2017 19.6% 2016 -6% 2015 2014 2013 2012 2011 Fund Manager information for TATA Digital India Fund
Name Since Tenure Meeta Shetty 20 Apr 20 1.53 Yr. Venkat Samala 26 Nov 20 0.93 Yr. Data below for TATA Digital India Fund as on 31 Oct 21
Equity Sector Allocation
Sector Value Technology 76.21% Communication Services 8.74% Industrials 3.88% Consumer Cyclical 2.02% Asset Allocation
Asset Class Value Cash 8.99% Equity 91.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 16 | INFY21% ₹817 Cr 4,896,000
↑ 1,450,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 16 | TCS12% ₹478 Cr 1,408,126
↑ 200,000 Tech Mahindra Ltd (Technology)
Equity, Since 30 Apr 16 | 53275510% ₹374 Cr 2,532,000
↑ 125,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Jan 16 | HCLTECH9% ₹352 Cr 3,074,713
↑ 600,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Jan 16 | PERSISTENT3% ₹127 Cr 324,857
↓ -181,106 Wipro Ltd (Technology)
Equity, Since 31 Jul 18 | 5076853% ₹126 Cr 1,950,000
↑ 500,000 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 28 Feb 21 | 5400053% ₹117 Cr 175,300
↓ -45,744 Mphasis Ltd (Technology)
Equity, Since 30 Sep 20 | 5262993% ₹113 Cr 349,485
↓ -154,515 L&T Technology Services Ltd (Technology)
Equity, Since 31 May 18 | LTTS3% ₹113 Cr 238,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 21 | BHARTIARTL2% ₹96 Cr 1,400,000
↑ 1,400,000 4. SBI Technology Opportunities Fund
CAGR/Annualized return of 24.1% since its launch. Ranked 42 in Sectoral category. Return for 2020 was 47.3% , 2019 was 12.2% and 2018 was 17.1% . SBI Technology Opportunities Fund
Growth Launch Date 9 Jan 13 NAV (03 Dec 21) ₹156.393 ↓ -0.83 (-0.53 %) Net Assets (Cr) ₹1,891 on 31 Oct 21 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆ Risk High Expense Ratio 2.61 Sharpe Ratio 4.4 Information Ratio 0.91 Alpha Ratio 25.62 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 30 Nov 16 ₹10,000 30 Nov 17 ₹11,043 30 Nov 18 ₹13,866 30 Nov 19 ₹14,917 30 Nov 20 ₹20,273 30 Nov 21 ₹35,649 Returns for SBI Technology Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 21 Duration Returns 1 Month 1.7% 3 Month 5% 6 Month 34.4% 1 Year 72.7% 3 Year 36.6% 5 Year 29.4% 10 Year 15 Year Since launch 24.1% Historical performance (Yearly) on absolute basis
Year Returns 2020 47.3% 2019 12.2% 2018 17.1% 2017 13% 2016 -3.3% 2015 2.4% 2014 29.2% 2013 2012 2011 Fund Manager information for SBI Technology Opportunities Fund
Name Since Tenure Anup Upadhyay 1 Jun 11 10.43 Yr. Data below for SBI Technology Opportunities Fund as on 31 Oct 21
Equity Sector Allocation
Sector Value Technology 73.26% Communication Services 16.87% Industrials 2.05% Consumer Cyclical 1.82% Asset Allocation
Asset Class Value Cash 5.88% Equity 94.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY22% ₹425 Cr 2,547,700 Alphabet Inc Class A (Communication Services)
Equity, Since 30 Sep 18 | GOOGL10% ₹183 Cr 8,395
↑ 1,500 HCL Technologies Ltd (Technology)
Equity, Since 31 Mar 06 | HCLTECH8% ₹159 Cr 1,393,774
↑ 97,800 Tech Mahindra Ltd (Technology)
Equity, Since 31 Aug 15 | 5327557% ₹134 Cr 909,735 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 06 | TCS6% ₹112 Cr 328,911 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 31 May 20 | 5400056% ₹108 Cr 161,100
↑ 58,100 Microsoft Corp (Technology)
Equity, Since 31 Aug 20 | MSFT5% ₹101 Cr 41,590 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL4% ₹77 Cr 1,130,130 NVIDIA Corp (Technology)
Equity, Since 30 Apr 21 | NVDA3% ₹64 Cr 34,300
↑ 14,700 Persistent Systems Ltd (Technology)
Equity, Since 31 Aug 20 | PERSISTENT3% ₹57 Cr 144,100 5. Kotak Small Cap Fund
CAGR/Annualized return of 18.3% since its launch. Ranked 23 in Small Cap category. Return for 2020 was 34.2% , 2019 was 5% and 2018 was -17.3% . Kotak Small Cap Fund
Growth Launch Date 24 Feb 05 NAV (03 Dec 21) ₹166.538 ↑ 0.36 (0.21 %) Net Assets (Cr) ₹6,180 on 31 Oct 21 Category Equity - Small Cap AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.89 Sharpe Ratio 4.63 Information Ratio 1.6 Alpha Ratio 20.68 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 16 ₹10,000 30 Nov 17 ₹13,243 30 Nov 18 ₹11,226 30 Nov 19 ₹11,877 30 Nov 20 ₹15,241 30 Nov 21 ₹27,179 Returns for Kotak Small Cap Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 21 Duration Returns 1 Month 0.6% 3 Month 7.5% 6 Month 22.7% 1 Year 76.4% 3 Year 34.7% 5 Year 23% 10 Year 15 Year Since launch 18.3% Historical performance (Yearly) on absolute basis
Year Returns 2020 34.2% 2019 5% 2018 -17.3% 2017 44% 2016 8.9% 2015 7.4% 2014 74% 2013 -4.9% 2012 50.2% 2011 -26.9% Fund Manager information for Kotak Small Cap Fund
Name Since Tenure Pankaj Tibrewal 21 Jan 10 11.79 Yr. Data below for Kotak Small Cap Fund as on 31 Oct 21
Equity Sector Allocation
Sector Value Industrials 34.2% Consumer Cyclical 26.32% Basic Materials 19.92% Technology 5.26% Financial Services 4.7% Consumer Defensive 1.63% Health Care 1.42% Real Estate 1.13% Energy 0.54% Asset Allocation
Asset Class Value Cash 4.88% Equity 95.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity Century Plyboards (India) Ltd (Consumer Cyclical)
Equity, Since 31 Oct 18 | 5325486% ₹351 Cr 6,507,045
↓ -8,760 Carborundum Universal Ltd (Industrials)
Equity, Since 30 Jun 18 | 5133754% ₹263 Cr 3,132,554
↑ 49,415 Sheela Foam Ltd (Consumer Cyclical)
Equity, Since 30 Jun 18 | 5402034% ₹240 Cr 969,285
↑ 56,131 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 13 | PERSISTENT3% ₹208 Cr 529,948
↓ -10,846 Galaxy Surfactants Ltd (Basic Materials)
Equity, Since 31 Jan 18 | 5409353% ₹205 Cr 650,103
↑ 7,345 Supreme Industries Ltd (Industrials)
Equity, Since 31 May 14 | 5099303% ₹198 Cr 849,578
↑ 152,522 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Jan 18 | 5201113% ₹193 Cr 898,561
↑ 61,621 Blue Star Ltd (Industrials)
Equity, Since 31 May 18 | BLUESTARCO3% ₹190 Cr 1,978,982 Somany Ceramics Ltd (Industrials)
Equity, Since 31 Jan 21 | 5315483% ₹182 Cr 2,377,258
↑ 75,349 Amber Enterprises India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Jan 18 | AMBER3% ₹163 Cr 491,595
↑ 20,000
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