Leaving even diversified funds and petro schemes way behind, which were top performers during the four-month bull run till August, tech funds have generated an average return of 17.66 per cent during the one-month period ended September 28, 2003.
Eleven technology schemes have generated returns between 13-24 per cent in just one month. Such performance, if it lived for long, may give some respite to several technology investors who have been suffering massive capital erosion since the burst of IT bubble in 2001.
Schemes like K Tech (gain 24.25 per cent), Prudential ICICI Technology (20.23 per cent), DSPML Technology.com (19.55 per cent), UTI Software (18.7 per cent) and Franklin Infotech (18.46 per cent) are top five performers during the one-month period.
In September, the market saw some value-buying in technology stocks after they were battered to a low in August. The stock market saw some profit-booking in old economy counters and foreign funds interest coupled with shifting of money into new economy shares were major drivers of a rally in IT.
The rally in IT stocks has helped technology funds post an impressive performance during the month.
Diversified funds and petro funds have seen a fall in their returns in September compared to August. Diversified funds and petro funds have generated a return of around 6 per cent, which is way below the performance of tech funds during a one-month period.
Besides tech, pharma funds with a return of 9.81 per cent during the period, is the only category which has beaten plain-vanilla equity schemes as well as petro funds in terms of performance.
Other technology schemes like Chola Freedom Technology (return 17.44 per cent), Magnum IT (16.97 per cent), Alliance New Millenium (15.8 per cent), IL&FS eCOM (15.66 per cent), SUN F&C Emerging Tech (13.61 per cent) and FranklinInternet Opportunities (13.59 per cent) have also come out with impressive performance during the month.
With the exception of Franklin Infotech, technology schemes have proved to be wealth destroyers with their net asset values (NAVs) languishing way below par value.