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Franklin Infotech Takes a Bow

IT funds have posted great results and Franklin has been the leader

Franklin Infotech has posted its best year-to-date (YTD) returns so far. It virtually puts the category returns of 19.53 per cent in shade with its astounding figures -- a whopping 30.57 per cent. It even managed to beat BSE IT, which returned 26.85 per cent for the same period.

The surprise in this package stems from the fact that it was not really performing well and even in the heyday of the boom on the bourses in 2007, it was not really a contender for any prizes.

(Performance of all Equity: Technology)

Aside from the fact that it is a very small fund, having assets of Rs 77.11 crore, any expectations from the fund were inextricably linked to the performance of the sector as a whole – individually no exceptional performance was slated to happen.

And that is what has come to pass. Confidence built up in the markets over the last two months has been a major contributor to this gain. This year’s revival has been led by large-cap stocks and it ensured that Franklin Infotech gets to be the biggest gainer among all.

The fund's portfolio is highly concentrated in the top three stocks -- Infosys Technologies has an allocation of 60.35 per cent, Tata Consultancy Services has 16.15 per cent and Wipro has 9.09 per cent. These three add up to a massive 85.58 per cent of the total portfolio. On the YTD return’s front, Wipro gained the maximum (57.74%), followed by Infosys (41.61%) and TCS (36.05%).

The worst-performer in the category has been the DSPBR Technology.com which has gained just 12.26%. It had 56.4 exposure to large-cap stocks and the rest in mid- and small-cap stocks, which went a long way in restricting its gains.

Technology Funds - Performance
Scheme Name  Returns (YTD)
Franklin Infotech 30.57
ICICI Prudential Technology 22.15
Magnum IT 21.48
Kotak Tech 17.72
Birla Sun Life New Millennium 12.98
DSPBR Technology.com Reg 12.26
Category Average 19.53
BSE IT 26.85
Sensex 25.75
BSE Mid Cap 14.96
BSE Small Cap 13.02
As on May 05, 2009