Time to @DD iT (inFormaTion TecHnoLogy) in PoRTFoLio

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Time to @DD iT (inFormaTion TecHnoLogy) in PoRTFoLio

 

Hoping you & your Family are Safe and doing well…  Midas has always enjoyed your Trust and Patronage.  We continue to seek your patronage as we surge ahead to add value to your Portfolio.

Prelude:

In 1975, watching a movie in the theatre was a big deal for Mr. Gupta. There was the cumbersome process of finding the show timings, waiting in the long queue for the tickets, and yet face the risk of seeing the ‘Housefull’ board when his turn came.  In 2010, Sandeep, his son, surfs the web, visits the online booking site, finds different movies, checks their reviews, checks shows timings available, books the tickets online through his card and reaches the multiplex just in time for the movie!!

 

This is the power of Information Technology (IT) which enables two-way communication between consumers and the enterprise.  Improved IT Infrastructure like ATMs and online payments have done away with the hassles of carrying big chunks of cash in your pocket while travelling.

 

So, what exactly does IT cover? Anything involved with Software, Computers, Networks, Intranets, Websites, Servers, Databases & Telecommunications falls under the IT umbrella. This sector ultimately serves other sectors like Banking, Manufacturing, Telecom, Hotels, Hospitals etc. to improve their efficiency and increase their revenues via customer satisfaction.

 

Information Technology sector can broadly be classified into:

 

 

So, how does the sector work? Here’s the analysis…

In India, the IT Software segment has seen significant growth and has put India on the global map.  It contributes for almost 75% of the total revenues of the IT sector.

 Functioning of Software segment is explained pictorially below:

What does the Past Say? Here’s the review of the Indian IT Sector….

In the last ten years the IT sector in India has grown at an average annual rate of 28%. India has emerged as the preferred destination for IT services owing to the cost advantage and talent pool.

What are the growth drivers of the IT sector? Here’s the sector analysis…

Digital Economy has been the Story driving India during COVID crisis

Universe of Schemes:

Data as on November 26, 2020 AUM (Rs. Crs) Returns(%)
3 Month 6 Month 1 Year 2 Years 3 Years 5 Years
Aditya Birla Sun Life Digital India Fund 684 14.90 59.89 45.21 26.49 23.43 16.69
ICICI Prudential Technology Fund 832 18.41 73.86 55.41 26.07 24.75 16.39
SBI Technology Opportunities Fund 326 16.81 43.81 37.61 22.81 22.43 14.42
Tata Digital India Fund 627 17.32 57.66 41.43 23.16 24.08

 

It’s TIME to ADD iT (Information Technology) in PoRTFoLio…

 

 

Author: Midas Finserve

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