An analysis of 15 schemes (including various options offered by individual funds) dedicated to the information technology, telecommunication and entertainment industry shows an average positive return of 10.58 per cent between November 1, 2002 and November 26, 2002.
Among these 15 funds, Franklin Infotech Fund-G leads the pack with the highest positive return of 13.59 per cent during the study period. The funds net asset value increased from Rs 12.44 to Rs 14.13.
Prudential ICICI Tech Plan comes second with a positive return of 13.55 per cent as its NAV rose from Rs 2.73 to Rs 3.10.Next is, Franklin Infotech Fund-D and UTI GSF-Software schemes, which registered positive returns of 13.51 per cent and 12.78 per cent respectively. While the NAV of SUN F&C Emerging Technologies Fund increased from Rs 2.99 to Rs 3.33, the KMMF K-Tech schemess net asset value rising from Rs 2.87 on November 1, 2002 to Rs 3.18 on November 26, 2002, registering a positive return of 10.8 per cent.
The top five in terms of NAV on November 26, 2002 are Franklin Infotech Fund -G (Rs 14.13), Birla IT Fund-Plan B (G) (Rs 12.11), Birla IT Fund-Plan A(D) (Rs 11.26), Franklin Infotech Fund-D (Rs 9.66) and Chola Freedom Technology-Cumm (Rs 8.90). Among them, the highest increase in NAV was noticed in the case of Franklin Infotech Fund-G.
Among the 15 IT funds, all the schemes showed positive return during the study period. The rise in net asset value of all information technology sector mutual funds was due to their high exposure in momentum stocks like CMC, Mastek, VisualSoft and Digital Global. These mutual funds also had exposure in top-line software companies such as Infosys Techno, Wipro and Satyam Computers. These stocks too increased in value and the increase was significant.