The Technology Fund is a mutual fund offered by ICICI Prudential that concentrates investments in the IT sector in India. It also makes investments in sectors that link to it like ITES (IT Enabled Services). It also provides investors with the option of being able to invest either in sharp, focused or thematic funds. This fund does not charge any entry fee and allows investments to start with as little as Rs. 5,000. It even offers systematic investments, withdrawals and transfer options.
Type or nature of fund
This is an open-ended equity fund
Investment objective
The object of the investments made through this fund is to provide returns in the long run through investments in the IT sector and other sectors that are dependent or related to it. The returns in this fund can also be generated through investments in sectors like media and telecommunications.
Fund information
| Inception date | 3 March 2000 |
| CRISIL rank | This fund has not been ranked by CRISIL |
| Plans | Regular and Direct |
| Options | Growth and Dividend |
| Schemes | •ICICI Prudential Technology Fund - Direct Plan - Dividend •ICICI Prudential Technology Fund - Direct Plan - Growth •ICICI Prudential Technology Fund - Regular Plan - Dividend •ICICI Prudential Technology Fund - Regular Plan - Growth |
| Entry load | Nil. If the plan is purchased through distributors then an upfront commision may be charged. |
| Exit load | •1% of the NAV if the investment is made in a lump sum and withdrawals or switches are made within 1 year of allotment of units. •1% of the NAV if the investment is made via SIP or STP and withdrawals or switches are asked for in the forst 2 years of allotment of units. |
| Minimum investment | •The minimum investment for new investors is Rs. 5,000. •For additional investments, the minimum is Rs. 1,000 |
| SIP | •For monthly SIPs the minimum investment allowed is Rs. 1,000 including 5 post dated cheques. •For quarterly SIPs, the minimum investment is Rs. 5,000 with 4 post dated cheques. |
| Product label | •The risk rating of this fund is High •It is aimed at those who are comfortable with a high risk profile and are looking for long term returns. |
| Benchmark | CNX Nifty Index CNX Nifty is also known as Nifty 50 or just Nifty. It covers 22 sectors and is calculated based on the free float methodology. It is owned and operated by India Index Services and Products (IISL). |
| SWP | Available but subject to a minimum withdrawal of Rs. 500 with increments in multiples of Re. 1 |
| STP | Available
•The minimum STP amount is Rs. 1,000. •The maximum tenure of the STP can be 10 years. |
| Redemption | Redemptions can not be of less than Rs. 500. |
Fund manager(s)
Mrinal Singh
- Education: BE and PGDM
- Past experience:
- Fund Manager (AVP), ICICI Prudential AMC Ltd.
- Senior Manager, ICICI Prudential AMC Ltd.
- Manager, ICICI Prudential AMC Ltd.
- WIPRO Ltd
- Robert Bosch GmbHMotor Industries Co Ltd.(MICO),Bangalore
- Other funds managed
- ICICI Prudential Midcap Fund
- ICICI Prudential Value Discovery Fund
- ICICI Prudential Advisor Series
- ICICI Prudential Dividend Yield Equity Fund
- ICICI Prudential value Fund – Series 4
- ICICI Prudential value Fund – Series 5
Investment philosophy or strategy
The investment philosophy followed by this fund is to adopt a “Bottom-Up” strategy while investing. It also invests mainly in the IT and ITES sectors but may chose to invest in other sectors for defensive reasons if market performance is not up to the mark.
Portfolio
| Company/Sector | Investment |
| Infosys Ltd. | 28.59% |
| Tata Consultancy Services Ltd. | 14.21% |
| HCL Technologies Ltd. | 9.03% |
| Wipro Ltd. | 7.70% |
| Short Term Debt & Net Current Assets | 7.20% |
| Cyient Ltd. | 6.30% |
| Persistent Systems Ltd. | 6.23% |
| Tech Mahindra Ltd. | 4.41% |
| Oracle Financial Services Software Ltd. | 4.31% |
| Mindtree Ltd. | 3.64% |
Risk measures
| Sharpe ratio | 0.93 |
| Alpha | |
| Portfolio beta | 0.79 |
| Std deviation | 19.61% (annually) |
Performance
| AUM | Rs. 337.59 crores (As of June 30, 2015) |
| NAV (As of June 30, 2015) | •Regular Plan Growth Option: Rs. 38.57 •Regular Plan Dividend Option: Rs. 30.00 •Direct Plan Growth Option: Rs. 39.21 •Direct Plan Dividend Option: Rs. 39.20 |
| Expense ratio | •ICICI Prudential Technology Fund Direct Plan - 0.95 •ICICI Prudential Technology Fund Regular Plan
|
Returns
| 2014-2015 (Absolute Returns) | 2013-2014 (Absolute Returns) | 2012-2013 (Absolute Returns) | Compound Annual Growth Rate (Since Inception) | |
| Scheme | 15.79% | 64.98% | 6.94% | 9.20% |
| NIFTY | 9.95% | 30.28% | 10.67% | 11.14% |
| NAV (in Rs.) | 33.31 | 20.19 | 18.88 | - |
The growth in this fund has been such that if investments were made in it at the time of inception, their value today would be much more. For example, of Rs. 10,000 were invested at inception, then today they would have grown to Rs. 38,570 according to the scheme performance. This performance is slightly less than the returns of the benchmark which would have put it at Rs. 50,534.42 (assuming that the NAV is Rs. 10).
Expert view of the fund
This is a fund that invests mainly in the technology sector. The investments are split between large, mid and small cap companies and can even be made in other sectors if the need arises. Historical performance of this fund has been less than its benchmarks performance however between 2013 and 2015, the fund has outperformed its benchmark. It is a high risk fund and targeted at those who are looking for a solution for creating wealth over a long term.
How to apply
To be able to apply for this fun, investors will have to either approach the ICICI Prudential branches or their distributors. The branches and distributors can provide advice on which fund to invest in and the options for investment while also helping out with completing the paperwork. Payments towards the funds can be made through cheques and demand drafts.
ICICI Prudential also offers online services where both new and existing investors can pick and start investing in funds of their choice once they have registered with the site. The payments for funds opted for though the online portal can be made via debit cards and online transfers like NEFT and RTGS.
