Table of Contents
Sbi Technology Opportunities Fund
The SBI Technology Opportunities Fund aims to provide investors with long-term capital raising opportunities by investing in a diversified portfolio of equity-related securities, equity-related technologies, and technology-related companies.
The fund invests at least 80% in shares of companies from the technology and technology-related sector.
The SBI Technology Opportunities Fund has the flexibility to invest up to 20% in shares of companies other than technology and/or debt or money market instruments.
Moreover, the fund receipts a bottom-up approach to stock selection and selects companies expected to benefit from the development, use and advancement of technology.
|Stock Name||(%) Of Total AUM|
|CASH, CASH EQUIVALENTS AND OTHERS||9.11|
|TATA CONSULTANCY SERVICES LTD.||7.86|
|HCL TECHNOLOGIES LTD.||7.51|
|TECH MAHINDRA LTD.||5.18|
|BHARTI AIRTEL LTD.||5.1|
|Fund House||SBI Mutual Fund|
|Return Since Launch||14.92%|
|Benchmark||S&P BSE Teck Total Return Index|
|Assets||2,415.51 Cr(As on 31-Mar-2022)|
|Expense||2.02%(As on 31-May-2022)|
Highlights of the Box
- NPV: The NPV of SBI Technology Opportunity Fund as of June 20, 2022, is Rs 123,7523 for the growth option in its regular plan.
- Returns: The following returns over different time periods are: 4.03% (1 year), 24.08% (3 years), 23.22% (5 years) and 15.04% (since inception). In contrast, category returns for the same period are: 1.42% (1 year), 26.8% (3 years) and 25.12% (5 years).
- Fund Size: SBI Technology Opportunities Fund currently has an AUM of Rs. 2,415.51 crore as of 31st May 2022.
- Expense Ratio: The fund’s expense ratio is 2.24% for the regular plan as of March 31, 2022.
- Exit Charge: SBI’s Technology Opportunity Fund must charge an exit fee, “0.50% exit fee if redeemed within 15 days.”
- Minimum Investment: The minimum investment required is Rs 5,000, and the minimum additional investment is Rs 1,000. The minimum investment in SIP is 500 rupees.
About the Fund
- The SBI Technology Opportunities Fund is a perpetual equity program in the technology sector of the SBI Collaborative Fund House.
- The Fund launched on January 1, 2013.
Investment objective and investment criteria
- The Fund’s investment objective is that “the Scheme seeks to provide the investor with an opportunity to increase capital over the long term by investing in a diversified portfolio of equity-related securities and interests in technology and technology-related companies.”
- It is measured against the S&P BSE Teck Total Return Index.
Asset Allocation & Portfolio Composition
- The fund’s asset allocation is approximately 94.67% equities, 0.0% debt and 5.33% cash and cash equivalents.
- While the top 10 stock holdings account for about 85.63% of the wealth, the top 3 sectors account for approximately 91.83%.
- The fund largely follows a growth investment approach and invests by market capitalization – approximately 0.0% in giant and large companies, 0.0% in mid-cap companies and 0.0% in small companies.
- Gains are chargeable at a rate of 15% (Short Term Capital Gains Tax – STCG) if the shares are redeemed within one year of investment.
- For units redeemed after one year of investment, gains of up to Rs. 1 lakh may be exempt from tax due on those units in any financial year.
- Profits above Rs. 1 lakh will be taxed at 10% (Long Term Capital Gains Tax – LTCG).
- For dividend tax purposes, the dividend income from that fund will be added to the investor’s income and taxed according to his tax table.
- Also, for dividend income exceeding Rs 5,000 in any financial year, The fund house deducts a TDS of 10% from this income.