Technology Funds

These schemes invest at least 80 per cent in shares of technology companies. As of August 31, 2024, 26 technology sector schemes managed assets worth Rs 45,637 crore.

In the quest for talent, venture capital firms are forced to get creative

Among sector/thematic funds, technology funds are on average down 23.4 per cent year-to-date

Covid-19 has accelerated the growth of IT companies with rise in demand for digitisation

Billionaire Thiel's Founders Fund is backing a new $130 million vehicle by Coral Capital to invest in Japan's technology startups as the country shakes off its image as a tough place for entrepreneurs

Consumer tech products maker Boat Lifestyle registered gross revenue of over Rs 500 crore in FY2019-20 and aims to double the topline by FY24 on the back of strong demand for products

Investors, however, need to understand their prospects before deciding to raise their exposure to these export-oriented sectors

For a one-year period, these funds have returned 16.8 per cent, beating other sectoral funds comfortably

Don't invest more than 5-10% of equity portfolio in sector funds

Technology funds have also beaten large, multi and mid-cap categories, which have given returns of about 13 per cent each

A mix of mean reversion and the defensive nature of the sector helped the category average returns to rise to 26.48 per cent

Invest in diversified equity funds or in banking funds if you are keen on exposure to sectoral funds