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2012
DSP BlackRock Technology.com Fund Tags: DSP BlackRock Technology Fund, DSPBR Tech fund Date: Meta Description: DSP BlackRock Technology.com Fund is an average technology fund compared to its peers in the same category Category: Mutual Funds
Analysis: Our recommendation for fresh investment: No Our recommendation for existing investment: Hold
DSP BlackRock Technology.com Fund is an average performing fund in its category. This fund is managed by Harsha Upadhyay since September 2011. If you already hold units in this fund keep a watchful eye on its performance. Limit your investment in this fund to at the most 30% of your total investment portfolio. Investing in sectoral funds is risky and such funds should only be part of a satellite portfolio.
Where does this fund invest your money? DSP BlackRock Technology.com Fund is a multi cap technology fund which means your money will be invested in companies in the technology business across market caps. The fund’s portfolio is concentrated in the software sector. It also has allocations in Telecom services, Media & Entertainment, Hardware and ISP. Its portfolio has about 86% exposure to stocks of large cap companies, 12% to stocks of mid cap companies and 2% to stocks of small cap companies.
How has it performed in the past? If you had invested Rs 1 lakh when the fund was launched in May 2000, your value of investments would be around Rs 2.8 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.1 lakhs. The performance has been better or similar to other mutual funds in this category. The fund has been giving at around 2% every year for those who stayed invested for last 5 years. Assume you had invested Rs 10,000 every month
in DSP BlackRock Technology.com Fund through SIP for the past 5 years today you would have around Rs 6.69 lakhs.
How will it 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 de 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 satellite portfolio should be to beat inflation and generate higher returns than from the core portfolio.
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.
When to exit? Withdraw when your goals are closer to achievement. 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. DSP BlackRock Technology.comFunddoes not qualify for sec 80C ELSS benefits.
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