Sbi Technology Opportunities Fund

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.

Portfolio Holdings

Basic Details

Highlights of the Box

1. 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.
2. 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).
3. Fund Size: SBI Technology Opportunities Fund currently has an AUM of Rs. 2,415.51 crore as of 31st May 2022.
4. Expense Ratio: The fund’s expense ratio is 2.24% for the regular plan as of March 31, 2022.
5. Exit Charge: SBI’s Technology Opportunity Fund must charge an exit fee, “0.50% exit fee if redeemed within 15 days.”
6. 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

1. The SBI Technology Opportunities Fund is a perpetual equity program in the technology sector of the SBI Collaborative Fund House.
2. The Fund launched on January 1, 2013.

Investment objective and investment criteria

1. 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.”
2. It is measured against the S&P BSE Teck Total Return Index.

Asset Allocation & Portfolio Composition

1. The fund’s asset allocation is approximately 94.67% equities, 0.0% debt and 5.33% cash and cash equivalents.
2. While the top 10 stock holdings account for about 85.63% of the wealth, the top 3 sectors account for approximately 91.83%.
3. 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.

Tax Implications

1. Gains are chargeable at a rate of 15% (Short Term Capital Gains Tax – STCG) if the shares are redeemed within one year of investment.
2. 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.
3. Profits above Rs. 1 lakh will be taxed at 10% (Long Term Capital Gains Tax – LTCG).
4. 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.
5. Also, for dividend income exceeding Rs 5,000 in any financial year, The fund house deducts a TDS of 10% from this income.