Tech Funds on Comeback Trail

Bruised technology funds have finally got some balm with the sustained rise in ICE stocks since the beginning of last week. The current rally has been lead by technology stocks with the Sensex gaining 406 points or 13% in just 8 trading sessions. On the other hand, technology funds have posted an average gain of 23%. The list of top gainers includes ING Growth Portfolio, which is a pseudo technology fund with 95% of its investments locked in the volatile sector. In fact, ING Growth Portfolio has been a chart buster with a 37% rise in a short-spell with the NAV jumping to Rs 7.33. The gain is largely attributed to the fund's concentrated holding in Wipro, which has made impressive gains after encouraging results and positive earnings outlook. However, the rise in technology funds has failed to match the spurt in most tech counters. A sample of 12 ICE stocks has rocketed by an astounding 79% in the same period. However, the gains are clearly demarcated here with stocks from the K-10 group bouncing back with a vengeance. Although these stocks are nowhere close to their highs, the jump still underlines the extremes in tech investing. For instance, Global Tele has vaulted from Rs 100 to Rs 260 while HFCL is up Rs 100 to Rs 170. On the other hand, Infosys and Hughes have gained a more sober 37% in the recent run up. This is one reason why funds have failed to register sharper gains with most of their assets locked in top-rung technology stocks. Further, most tech funds