Birla IT fund, India's best performing technology fund is changing its investment objective. The fund has been renamed as "Birla India Opportunities Fund" with effect from August 25, 2003.
The fund will now seek to achieve superior long-term growth of capital by investing in shares of companies that do one or more of the following:
Leverage India's intellectual capital for providing services, research and creative inputs.
Seek to use current and impending changes in patent laws/import tariffs/quotas to supply goods and services.
Leverage India's lower labour cost for providing services and manufactured goods.
Leverage India's large population of English speaking people for providing services.
Birla IT will thus no longer be focussed exclusively on information technology stocks. The new investment objective seems to include the pharmaceutical sector, a variety of manufacturing industries and technology dependent industries like business process outsourcing (BPO). Birla India Opportunities will thus be a more diversified fund.
Launched in December 1999, Birla IT fund has been the top-performing fund in recent times. It not only has the best returns in the category its risk adjusted returns (sharp ratio) also top the category. The fund has also been the topper among the technology funds in the last two consecutive years.
In 2003 too, the fund has continued its fine performance. The fund's year-to-date return of 6.27 per cent as on August 4, 2003 is among the best in the category.