The IT sector in India is expanding everyday this sector seems like technology merged itself in the industries. The IT sector mutual funds give investors a chance to invest in technology funds and generate higher returns. This will lead to builds a quality portfolio that every investor is searching for. Be the part of this highly demanding IT industries and earn your desirable profit.
In this post, we will see the best potential of IT sector funds and its ability to serve the investors high qualified investment portfolio of mutual funds. And we will also know about its scheme performance how they generate better returns.
Understand the IT Sector Mutual Funds
The sectoral funds belong to the equity category which provide higher risks. Because the IT sector mutual funds invest in one sector. Which means if the market falls so your mutual funds investment will. So how to get rid of this risk, you just need to invest for the longer duration at least for 5-7 years, this will reduce the risks. The IT firms are cyber securities, hardware, software, computers etc. This mutual funds diversified their asset classed in IT industries which will the another reason to reduce risks.
Best Funds to Invest in IT Sector Mutual Funds
There are many IT sector mutual funds which can build you a quality portfolio and generated high returns, here are some:
- ICICI Prudential Technology Fund
This IT fund was launched on 03.03.2000 with a worthy asset under management (AUM) of Rs. 14,226.11crores, the ICICI Prudential Technology Fund has given tremendous compound annual growth rate of 13.27%,. It also delivered the SIP annualised return of 25.31% but the twists are here this IT sector fund outperforms it benchmark index of 22.03%. This schemes mainly aims to invest its net asset in equity and equity related securities. You can choose the best route like SIP (Systematic Investment Plan) to generate higher returns for your investment portfolio.
- SBI Technology India Fund
This IT schemes aims for the long term capital appreciations by investing its asset into equity and equity related instruments this IT fund was launched on 05-12-2013, with an amazing asset under management (AUM) 4,390.13 crores. It serves with an SIP annualised return over the past 3 years with 25.65% and beats it peers with the benchmark index of 22.03%. Since its inception which means when the fund launches the compound annual growth rate (CAGR) it gives the return of 21.2%. You can invest with a systematic investment plan for the long term duration to gain your desired returns.
- TATA Digital India Fund
This IT fund boom in the mutual fund market with an asset under management (AUM) of Rs. 12,041.21 crores, this schemes invest its net asset of at least 80% in equity and equity related schemes. The compound annual growth rate (CAGR) of 20.86%, it also shown an amazing SIP annualised return of Rs. 7.43% over the past 3 year, and beats its benchmark index of 22.03%. This popular fund was introduced on 05-12-2015. Investors can grab this fund through Systematic Investment Plan which can bring you a high quality returns.
Some Advantages of IT Sector Mutual Funds
The IT sector mutual funds serve investors with many benefits let’s see some of them:
- Potential for High Growth
The technology industries have shown tremendous growth in India, it expands like a rumour so this offer a high growth potential to the investors. Which bring the profitable returns. It invests in the growing IT companies because of this it will have a chance to boom in the mutual fund market. The high growth potential shows its ability to grow even in the volatile market.
- Diversification
The diversification plays an important role in the mutual fund industries. This will help the fund manager to diversify the funds asset classes into different IT industries which will help you to low the risk and bring this scheme in the mutual funds platforms to gain the better returns. When it’s about diversification of the portfolio it will always bring the magic to reduce every single IT fund. So before investing make sure you will have a diversified portfolio that will help you to grow for the long term duration.
- Expert Management
This IT funds is managed by the professional which give investors a chance to invest in the best IT mutual funds and this expert will help you to choose a better quality fund. Which will enhance your investment portfolio. The fund manager will delve into deep research and analysis of every IT fund that will give the clarity which fund will survive in the mutual fund volatile market. They will choose the growing industries stocks which bring them a quality fund. And the best thing is you can have the expert guidance for your mutual fund investment portfolio.
- Liquidity
The IT sector mutual funds are might be volatile in the market but it also provides the investor a freedom to invest in the different industries. Which gives a chance to make high returns. The liquidity that will help you to grow with your investment portfolio that also provides long term investment growth. When we have the freedom for anything it will also give a chance to diversified your fund portfolio and reduce the risk even in the volatile market. The market fluctuation is which investors might get scared of. So this category will give you the freedom to invest by your desire.
Case Study of IT Sector Mutual Funds
This IT industry will boom after the pandemic because every industry shifts to digitalization. Not just its category the IT sector mutual funds scheme will get the immense popularity in the mutual fund market which brings growth to its schemes. This popular IT category will have the potential to grow in the upcoming future. After the financial year 2020 this industry will reach the sky. You will see that until the 2030 this mutual fund category will cover the whole market. If you want to invest in its scheme. Then you should invest for the long term duration for high potential returns.
Conclusion
The IT sector mutual funds serve investors with many benefits and its schemes are also popular in the mutual fund market. Be the first one to grab this mutual fund schemes. The best thing it offer is expert advice. Which can give you the clarity of this worth in the mutual fund industry. And another best one is systematic investment plan this plan will reduce your burden and provide investors a quality portfolio. While investing in this fund. Invest for the long term duration. Bring this fund to your investment portfolio and have your desired returns.
