Mutual Fund: Take Advantage of The Boom of IT Sector


If you are interested in the stock market (Share Bazar) Infosys, must be aware of TCS, Tech Mahindra etc. such as IT companies (IT Companies). The news of good returns of the shares of these companies keeps getting published. Seeing the potential of this sector, Aditya Birla Sunlife Mutual Fund has launched a new fund offer (NFO) named Nifty IT ETF. It is an open ended exchange traded fund. It will track Nifty IT TRI (Total Return Index). The fund has opened on October 20 and will close on October 28.

10 companies in the IT sector

Nifty IT Index uses the method of free float market capitalization. This index acts as a benchmark for the Indian IT sector. It consists of 10 IT companies. These are all companies listed on the National Stock Exchange (NSE). It is primarily a large cap index which rebalances on a quarterly basis.

In this, no stock exceeds 33%. At the time of rebalancing the weightage of top 3 stocks together does not exceed 62%. Nifty IT Index has performed well in all time. Aditya Birla Sunlife Mutual Fund MD and CEO A. Balasubramanian says that over the years, India has established itself as a preferred destination for IT and Business Process Management services. In India, this sector has contributed 44% in foreign direct investment (FDI).

Indian IT sector to be worth $350 billion by 2025

Nasscom estimates that the annual revenue of the Indian IT sector will be $ 350 billion by 2025. The government is also giving incentives to this sector. This incentive is for the initiative of Fast Track Digital India. Along with this, the Ministry of Electronics and Information Technology has also started the scheme PLI (Promotion Incentive). All these initiatives are beneficial for this sector.

You can start with 500 rupees

A minimum investment of Rs 500 can be made in this NFO. It is estimated that by 2025, India will have 90 million active Internet subscribers. This will see growth across segments ranging from e-commerce to fintech, cloud computing and social media. Apart from this, there will be adoption of new edge technology by 2035. This will contribute 1.3% to India's annual growth rate. Digital transformation will accelerate for many reasons. With this, IT companies will continue to grow strong.