Weekend Bytes
Tech Fund Investing: Unveiling the future of potential financial growth
Tech Fund Investing: Unveiling the future of potential financial growth
Technology is an indispensable part of how we as individuals and businesses operate. India finds itself at the forefront of this change, with talent availability being a key differentiator. In recent years, India has emerged as a global technology hub, making waves with its vibrant tech ecosystem and rapid digital transformation. As the world increasingly uses technology across markets and industries, opportunities for information technology companies are likely to increase.
IT has been a Success Story for India Talent – India’s moat in the Tech world! Why invest in HDFC Technology Fund?
- Indian IT Revenues as a % of India’s GDP has become sizeable over the years - ~7.5% in
Talent – India’s moat in the Tech world!
Indian IT companies display excellence in their service delivery, and have been consistent market share gainers in the global landscape. They have evolved stronger through various technology cycles, using themes such as offshoring, remote infrastructure management, cloud / digital, automation, and more recently AI, data and cloud to find opportunities to create value. With the highest quantum of STEM (STEM is an abbreviation for Science, Technology, Engineering and Mathematics) graduates among English speaking countries, Indian technology universe have significant opportunity. This sector has a long history in Indian capital markets, and has created wealth over time.
Why invest in HDFC Technology Fund?
1. Increasing tech intensity is a secular trend, across markets and industries
2. Indian IT – Consistent market share gainer
- Outperformed / evolved across tech cycles
- Talent is India’s biggest moat in tech world
3. Increase in tech spending and offshoring are medium term tailwinds for growth
4. Digitalization in India has long runway for growth
5. Good growth, strong return ratios, superior dividend yield at reasonable valuation
India’s technology landscape presents a compelling investment opportunity. The Rapid growth of startups, increasing adoption of tech-enabled services, supportive government policies and global interest collectively create an environment to consider investing in India’s Thriving technology sector.
HDFC Technology Fund, which invests at least 80% of its Net Assets in equity and equity related instruments of in technology & technology related companies, presents a viable investment avenue for investors looking to invest in this space.
The NFO opens on August 25, 2023 and closes on September 05, 2023.
