ICICI Prudential Technology Fund

ICICI Prudential Technology Fund is being managed by Mrinal Singh. Mrinal has 9 years of experience in this field and has been managing this fund from Aug 2009.The fund has performed spectacularly well in the last 5-year period. If you have invested in this fund, keep a close watch on where performance is headed. If you are a new investor you can skip this one for a better performing large cap fund.

Where does ICICI Prudential Technology Fund invest your money?

ICICI Prudential Technology Fund is a large cap technology fund which invests your money in large technology oriented companies. It invests in companies listed in the BSE Teck. Its portfolio has 39.81% exposure to large cap companies and 26.65% exposure to mid cap companies and 32.71% small cap companies. It heavily invests in Infosys ltd. The fund seeks to invest in knowledge sectors like IT and IT Enabled Services, Media, Telecommunications and others.

.

Suitable for what?
  • Child's Education
  • Child's Marriage
  • Buying house
  • Retirement Corpus

 

 

 

Not Suitable for?
  • Wealth Creation
  • Lifestyle needs
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make ICICI Prudential Technology Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. ICICI Prudential Technology Fund can be part of your satellite portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has ICICI Prudential Technology Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 2000 the value of your investments would be around Rs 1.94 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.37 lakhs. The performance has been not better than or similar to other mutual funds in this category. The fund has been giving at around 6.61% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in ICICI Prudential Technology Fund through SIP for the past 5 years today you would have just around Rs 8.45 lakhs.

How will ICICI Prudential Technology Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. 

So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of ICICI Prudential Technology Fund is 2.89%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to exit?

Withdraw when you see this is no longer the ‘happening’ sector. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. ICICI Prudential Technology Fund does not qualify for sec 80C ELSS benefits.

Better alternatives for core portfolio

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.


Explore more in a easy manner.


Table of Contents

Table of Contents