The technology industry is the fastest growing industry in the world. From heavy appliances to pocket devices, everything has become an important part of our daily lives. This large scale consumption of electronic goods have fused momentum in the technological world. Today, every company, whether big or small, is desirous of linking up with the tech industry in any form whatsoever.
Mutual fund houses are also one of the many aspirers of gaining wealth from the tech industry. As a result, many big and renowned asset management companies have introduced technology mutual funds. These are sector oriented mutual funds where the majority of the portfolio wealth is dedicated to the technology sectors.
In this write-up, a consolidated account of MySIPonline’s research has been given that adequately depicts the performance and risks of the tech mutual funds. This report will help the investors to analyse the need and importance of investing in these funds and how can they grow their corpus by betting on them.
An Overview
Technology Funds, as the name suggests, are the sector oriented funds with keen focus on technology industry. These funds leverage on the rapidly growing IT companies and work towards crystallising great opportunities for earning returns.
In the past decade, technology has taken a massive turn towards progress. There was a time when speaking on the phone was considered to be a luxury, but now has been reduced to a moment’s activity. This growth has led to a tremendous outburst of returns across the technology mutual funds. Let’s comprehend what were the scores of the best tech funds in the market in the immediate past.
The Performance
Some of the biggest bets in mutual fund industry are made on the technology funds. Investors who have been a little wise in their choices kept their funds in technology sector and thus, were rewarded extremely well.
The best technology funds in India have ploughed returns as high as 39.93% in the short term period, while in the long term the score was a mighty 23%. Speculations have revealed that assuming the same pace has been maintained by the technology industry in the near future, chances are that the prospective investors will be rewarded with both hands. The growth in the financial year 2015-2016 alone was about 14%, followed by a growth of 19.25% in the financial year 2017-2018. All these factors lead to a single conclusion that in the coming ages, technology will be the new dominating power in the world (not that it is not today) and tech mutual funds will be the high priority purchase for every investor.
The Risk Factors
It’s a universal fact that the higher the risk taken, the better the rewards reaped. However, this doesn’t imply that one shall behave like Ironman and simply dive into the storm of risks without calculating the consequences. Taking risk is worth when there are possibilities tending towards positive outcomes.
If we talk about mutual funds, there cannot be any guarantee of risk free investment, because there’s no such thing as ‘risk-free’. Whatever you may choose has to have some portion of it struggling with market uncertainties. Hence, if you choose to invest in technology mutual funds, then of course it’s a valuable addition to your portfolio but not immune to pitfalls.
Hence, if you elect to invest in sector based funds (or for that matter any fund), then MySIPonline strongly recommends to analysis the risk factors attached to it. Technology is a rapidly moving industry but that doesn’t guarantee 100% protection.
The Verdict
Technology Mutual Funds are definitely a solid way of increasing the health of your portfolio. Becoming one of its patron will not only help you gain better returns, but will also open doors to new paths of success. MySIPonline has helped thousands of investors achieve their dreams through their investment. Hence, we strongly recommend the readers to use our free online portal and get started with their investments instantly without any troubles.
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