Investing in the technology sector can provide regular growth as well as the potential to make profits. It is crucial to understand how technology opportunities work in order to identify the best investments.
Sharpe ratio
Investing in the SBI Technology Opportunities Fund is a smart way to gain maximum growth opportunity. This fund invests in equity related securities of technology companies. It gives CAGR return of 20.6% since its launch on 9 Jan 13. It has the minimum initial investment of Rs 5000. It attracts an exit load of 0.50% if you redeem your funds within fifteen days. The fund has a suggested investment horizon of three years to ensure predictable returns.
A portfolio with 5% volatility can match the rate-free rate of 3%. However, investors must remember that investing in a portfolio with higher volatility can offer higher returns. For instance, a portfolio with a Sharpe Ratio of 1.15 has more return for every unit of risk.
A technology stocks fund with a high Sharpe Ratio can provide investors with a good return yielding capacity. However, this fund is a risky proposition. Moreover, investors with a moderate risk preference should think twice before investing in this fund.
Treynor
Among the many mutual funds in the SBI stables, the SBI Technology Opportunities Fund ticks all the boxes. The fund is powered by an inhouse value research team and boasts of having the best management in the industry. As the name suggests, it is a “growth” fund, but you can actually redeem your holdings in full at any time. The perks include a 0.50% exit load if you redeem your funds within 15 days. The fund has a minimum investment of 5000 rupees. The fund has a slick mobile app. The SBI Technology Opportunities Fund was a runner up for the best equity category amongst its peers, proving the adage that a well run fund is like a well run company. The fund has an average return of 7.41% for the year to date, compared to a measly 3.28% for the corresponding period in 2013. The SBI Technology Opportunities Fund was named for the second time in its history, proving the adage that “a good year is a good year.” The fund has an average asset size of a shade over 10 billion rupees, which equates to a humongous allocation for the fund.
Alpha
Unlike your typical mutual fund, the SBI technology opportunities fund has a relatively low risk of losing out on your money. While the fund is not free, it does require an initial deposit of a minimum of 5000 rupees. However, this should not be construed as a stumbling block to your investment success. The SBI technology opportunities fund is a worthy investment and you may well be pleasantly surprised at the returns on offer.
SBI rolled out its latest entrant on 9 January 2013, the SBI technology opportunities fund. The fund is designed to take advantage of the nascent technologies in the tech sphere with a hefty dose of R&D. The fund is backed by a formidable management team led by seasoned veteran, Mr. Saurabh Pant. The fund’s track record speaks for itself. The fund has an AUM of over a tenth of a trillion dollars. The fund’s tally of aces is unrivaled in its category. The SBI technology opportunities fund is certainly a winner in the mutual fund space.
Taxation
Investing in the SBI Technology Opportunities Fund is a good idea because the fund invests in stocks listed in the Indian Stock market and global stock market. This fund also attracts an exit load of 0.50% when the investment is redeemed within 15 days of purchase. This is because of the high risk associated with the fund. The fund also requires a minimum SIP investment of Rs 500 and an additional investment of Rs 1000.
The fund also has a suggested investment horizon of at least three years to minimize the risk of losing money. It is also a good idea to purchase the fund if you plan to use your investment as a retirement fund. The fund is managed by Saurabh Pant. The fund invests in stocks of various companies and sectors. It is a part of the Equity : Sectoral-Technology category. The fund invests in stocks of companies that have technologically advanced products and services.
