DSPML TECHNOLOGY. Com, launched in April '94, focuses on investing in the high growth areas of technology and technology dependent companies of computer hardware & software, telecom, media, entertainment, internet, e-commerce and other technology enabled companies as transaction processing, call centres etc. The fund charges a 2% entry load while exit from the fund is at NAV.
Having picked its initial investments in a falling market, when the markets in 2000 had already changed directions southward after the tech wreck. While, the fund had by May 2000 finished off as much as 80% of its investments, it continued to have an average 15% as cash component till November 2000, thus picking up stocks and still lower prices. While, the fund has since launch given a negative return of 32.4%, it has nevertheless been able to retain its investors with minimal outflows. Largely an average performer, over the six months ending February 9, 2001, the fund was down 11.96% ranking 6 among 13 of its category.
DSPML TECHNOLOGY. Com, while investing in bluechip stocks and having a sizeable exposure to software comapnies, is actively managed. Currently, the fund has investments in the order of 75.5% in software companies, 13.5% in telecommunication, 6.4% in computer hardware and 2% in software training companies.
High volatility is an inherent feature of investments in a sector fund and more so in a sector like information technology. While, the quality portfolio of the fund is poised for good returns given the attractive valuations of the underlying stocks, investors need to have an appetite for high volatility besides a long-term perspective while investing in the fund.