HDFC Tech Fund: Portfolio Composition, 0.73% Increase in Short Term Returns, Comparitive Overview Etc.

HDFC Tech Fund Performance Overview

Short-Term Performance

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In the short term, the fund has demonstrated stability amidst market fluctuations. Over the past week, investors saw a modest increase of 0.73%, and over the last month, the fund reported a marginal gain of 0.02%.

Medium-Term Performance

Over the past six months, the HDFC Technology Fund exhibited robust growth, with an impressive increase of 12.08%. This performance underscores the fund’s ability to deliver consistent returns despite short-term market uncertainties.

Long-Term Performance

In the long term, the fund has delivered steady growth, with a year-to-date increase of 3.31%. Since its inception on September 8, 2023, the fund has recorded an absolute return of 13.84%, underperforming the category average of 19.71%.

HDFC Tech Fund Portfolio

Portfolio Composition

With a well-diversified portfolio comprising 23 stocks, the fund strategically invests in key sectors such as computers, telecommunications, and e-commerce. Top holdings include leading companies like Infosys Ltd., Tata Consultancy Services Ltd., and Bharti Airtel Ltd., further enhancing the fund’s potential for growth and stability.

Sectoral Allocation and Suitability

The HDFC Technology Fund stands out with a notable allocation of 96.25% in domestic equities, strategically distributed among different market segments. Large Cap stocks account for 62.11%, Mid Cap stocks for 11.67%, and Small Cap stocks for 14.71%. This sectoral allocation is designed for investors who possess advanced knowledge of macro trends and are willing to take selective bets for potentially higher returns compared to other Equity funds. However, investors should be prepared for the possibility of moderate to high losses, even in a performing market.

Comparative Performance

Despite recent market challenges, the HDFC Technology Fund has displayed remarkable resilience, consistently outperforming its benchmark, the S&P BSE Teck index. Over various time frames, the fund has exhibited positive returns, showcasing its ability to navigate market volatility effectively.

HDFC Tech Fund Returns

Period Invested for ₹10000 Invested on Latest Value Absolute Returns Annualised Returns Category Avg Rank within Category
1 Week 17-May-24 10115.80 1.16% 1.43% 95/161
1 Month 24-Apr-24 10132.00 1.32% 4.33% 134/159
3 Month 23-Feb-24 9685.90 -3.14% 7.03% 148/153
6 Month 24-Nov-23 11260.80 12.61% 24.73% 127/144
YTD 01-Jan-24 10375.40 3.75% 14.46% 133/148

Tax Treatment 

The fund’s tax treatment ensures transparency and efficiency for investors. Long-term capital gains tax at a rate of 10% applies if sold after one year from the purchase date, with any gains exceeding 1 lakh subject to taxation. Short-term capital gains tax at a rate of 15% applies if sold before one year from the purchase date.