Technology Funds Take A Drubbing

Technology funds, which gave maximum returns to unitholders during the boom period, have received severe drubbing, underperforming the markets as well as other equity-oriented schemes during last one year Oct-Sept, six months (April-Sept) and three months (July-Sept).

The market, represented by the BSE Sensex has declined by 22 per cent in six months, 18.7 per cent in three months period and 41 per cent in one year.

Of the 42 growth oriented equity schemes studied, as many as eight out of 11 technology funds topped in the top ten losers list all underperforming the market giving negative returns during last three months, six months and one year.

Of the 42 equity oriented schemes, as many as 19 underperformed the markets in last six months giving negative returns of over 22 per cent. In shorter period (three months) 17 schemes underperformed the market while for one year terms 21 schemes underperformed the market.

Alliance New Millennium growth fund top the list with negative returns of 45.4 per cent in last six months. Followed by UTI growth sector software fund -44.1 per cent, Pioneer ITI infotech fund -42.94 per cent, Kotak Mahindra K Tech fund -40.0 per cent and IL & FS eCom Fund and Prudential ICICI technology fund both -34.6 per cent. Among non-IT funds, the net assets value of ING growth portfolio declined by 31.6 per cent and that of Taurus discovery stock declined by 31.0 per cent.