Vishweshwar Education Society’s

Indira Institute of Business

Management
PROJECT REPORT

ON

“COMPARATIVE ANALYSIS OF ICICI PRUDENTIAL

TECHNOLOGY FUND-DIRECT GROWTH PLAN WITH

S&P BSE-TECHNOLOGY”

SUBMITTED TO

INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI

MUMBAI

BY

YASH HARISH WAGHELA

Roll No. 2022081
Batch No. 2022-2024

IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY
OF MUMBAI
 October, 2023

DECLARATION

I, Mr. Yash Harish Waghela hereby declare that this

project report is the record of authentic work carried out
by me during the period from 15th June 2023 to 14th
July 2023 and has not been submitted to any other
University or Institute for the award of any degree /
diploma etc.

Signature
Name of the student
Yash Harish Waghela

Date:
CERTIFICATE FROM THE COMPANY/ORGANISATION:
 CERTIFICATE

This is to certify that the project entitled “Comparative

Analysis of ICICI Prudential Technology Fund Direct-
Growth Plan and S&P BSE technology” submitted by Mr
Yash Harish Waghela of Indira Institute of Business
Management in partial fulfilment for the award of
Master of Management Studies of Mumbai University is
his/her original work and does not form any part of the
projects undertaken previously.

This project report is the record of authentic work

carried out by her during the period from 15/06/2023

to 14/07/2023.

She has worked under my guidance.

Prof. Amit Ahire Dr. Susen Varghese

(Faculty Guide) (Director In charge)

Place: Navi Mumbai

Date:
 ACKNOWLEDGEMENT

This project is a golden opportunity to me for learning and self-development. I

feel very lucky to have talented and wonderful people who lead me through in
the completion of this project.
I express my deepest thanks to the Director-in-Charge of Indira Institute of
Business Management, Dr. Susen Varghese and placement cell head, Prof. Aji
John for this wonderful opportunity which paved my way to associate with
Cypher Investment.
My special thanks to my mentor Prof. Amit Ahire for his valuable time and
guidance. He took time from busy schedule and guiding me to carry out my
summer internship project.
A humble thanks to all other faculties for helping me whenever I need. I also
feel delighted to express my thanks to library staffs and non-teaching staffs who
helped me to complete my project on time.
I express my sincere gratitude to Cypher Investment Consultancy Services for
giving me this opportunity. My special thanks to Mr. Madhavan – Mentor for
his guidance and support.
My sincere appreciation to my loved ones and friends for their support and
encouragement along the way. I would want to convey my sincere gratitude for
their advice and assistance.
At last, but just as importantly, I thank God Almighty for all the benefits that
have enabled this project to succeed.
 EXECUTIVE SUMMARY
I have worked for 1 months with Cypher Investment consultancy
services. During this period the objective of my study were:

1. To analyze the stock market

2. To enter the corporate world
3. To learn new things
The research methodology which I used for my study was
QUALITATIVE RESEARCH. I learnt about the company, its market
and the competitors they have. My main aim was to study the
company and its working in detail.
During this course of project research my major findings were –
1. Basics of stock market
2. How to present yourself in front of the client
3. Came to know the real-world scenarios

It was a great learning experience for me. Though my period at the

firm was short, I learned some valuable things which will help me in
both corporate and business world.

We even got to present in front of the whole office which boosted my

confidence through which I learnt how corporate presentations are
conducted and why they are conducted. Overall working at Cypher
Investment consultancy services increased my knowledge and taught
me professionalism.
 INDEX

Chapter No. Title Page No.

1 Introduction 1
Introduction of the project 2
Relevance of the project 2
Objective of the study 2
Scope of the study 3
Limitations of the study 3
2 Profile of the company 4
About company 5
Swot analysis 6-7
Job role 8
Weekly report 9-10
Learning 10-11
3 Analysis of mutual fund 12
About mutual fund 13
Investment objectives 14
Tax treatment 14
Top holdings 14
Sectoral comparison: Technology 15
Returns 15
SIP Returns 16
4 Analysis of Benchmark 17
Details 18
History 18
Key points about benchmark 19
Performance 20
5 Comparison Of Fund and Benchmark 21
Importance of comparison 22
Risk ratios 23-24
Comparison 25
6 Findings 26-27
7 Recommendation 28-29
8 Conclusions 30-31

Bibliography 32

CHAPTER 1

Introduction
1.1 Introduction of the topic:
ICICI Prudential Technology Fund Direct-Growth Plan mutual fund, which
invests in technology-related equities, is compared to the S&P BSE
Technology index, which serves as a benchmark for the technology industry
in India. Whereas the latter shows the general market movements, the former
deals with actively managed funds. Analysing these two contributes to the
understanding of whether active management in the technology industry can
achieve better returns than passive investing.

1.2 Relevance of the project:

A comparison between S&P BSE Technology and ICICI Prudential
Technology Fund Direct-Growth Plan is quite important in today's financial
environment. Investors looking for optimal investment avenues must
comprehend the performance, risk considerations, and prospective returns of
technology-focused funds given the rapid pace of technological
improvements. Investors can make well-informed selections that are in line
with their investing goals, risk tolerance, and market conditions with the help
of this study.

1.3 Objectives of the Study:

a. Performance Analysis: To compare the historical performance of the
ICICI Prudential Technology Fund against the S&P BSE Technology index
over different time frames.
b. Risk Assessment: To evaluate the risk associated with both investment
options, considering volatility, standard deviation, and other risk metrics.
c. Diversification and Composition: To analyze the portfolio holdings of the
fund and index to assess diversification and concentration risks.
d. Expense Ratio and Fees: To compare the cost-efficiency of investing in
the fund versus tracking the index.
e. Investor Suitability: To provide insights into which type of investor might
benefit more from each option based on their investment horizon, risk
appetite, and investment goals.

1.4 Scope of the study:

The study will mostly concentrate on the analysis of historical data,
comparing the performance, risk factors, costs, and portfolio compositions of
S&P BSE Technology and ICICI Prudential Technology Fund Direct-
Growth Plan using a range of financial measures. In order to guarantee
pertinent and correct comparisons, it will span a certain amount of time.

1.5 Limitation of the study:

a. Data Limitations: The study's conclusions heavily rely on the accuracy
and availability of historical data for both the fund and the index.
b. Market Conditions: The analysis might not consider unforeseen events or
market conditions that could significantly impact the performance of the
fund and index.
c. Performance Attribution: Assessing the performance solely based on
historical data might not reflect future outcomes accurately.
d. Subjectivity: Investors' individual preferences, risk tolerance, and goals
might not align with the generalized findings of this study.
 CHAPTER 2

PROFILE OF THE COMPANY

2.1 ABOUT COMPANY:
Name: Cypher Investement Company
Founder: Radha Shankar
Location: Chennai,Tamil Nadu
Founded in: 2017
Email : info@cypherinvestment.in
Company services:
Stock Recommendations: Cypher Investment Company offers services related to stock
market investment, providing recommendations on which stocks to purchase. Banknifty and
nifty.

E-Learning Platform: Cypher Investment Company operates an e-learning platform, which

provides educational resources and courses related to the stock market and investment. This
platform is designed to help individuals improve their understanding of financial markets.

Online Courses: Through their e-learning platform, Cypher Investment Company offers
online courses covering various aspects of stock market trading and investment. These
courses are accessible to anyone interested in learning more about stock market.

How it works:

1. Banknifty & Nifty

They provide calls for bank nifty and nifty daily 3 to 4 sure shot intraday calls with proper
stoploss and target with high accuracy up to 90% the tips given in the group is given by high
experienced research analyst with 7 years of experience in the market.

2. Option Traning Course

Option trading course is specially designed for beginners in the course we teach each and
every thing from basics to advance levels online class with limited clients 7 years technical
analyst experience teachers will take lectures.

2.2 SWOT ANALYSIS:

Strengths:
 Founder Expertise: Radha Shankar's expertise and experience in the
financial markets could be a significant strength, lending credibility to the
company's services.
 Diversified Services: Offering both stock recommendations and an e-
learning platform diversifies revenue streams and caters to different
segments of the market.
 Educational Resources: The e-learning platform and online courses add
value by educating customers, potentially increasing trust and loyalty.
 Location: Being based in Chennai, a hub for financial activities in India,
might provide local networking opportunities and insights.

Weaknesses:
 Market Volatility: The company's focus on stock recommendations may
be vulnerable to market fluctuations, impacting client satisfaction and
retention during downturns.
 Competition: There might be intense competition in both stock
recommendations and e-learning platforms, making it challenging to
stand out.
 Dependence on Founder: Over-reliance on Radha Shankar's reputation
could pose a risk if there's no succession plan or if the company struggles
to maintain its standards without the founder's direct involvement.
Opportunity:
 Market Expansion: The growing interest in stock markets among
individuals presents an opportunity to expand the customer base beyond
Chennai and Tamil Nadu.
 Technological Advancements: Leveraging advancements in technology
to improve the e-learning platform or to develop AI-based stock analysis
tools could enhance service offerings.
 Partnerships/Collaborations: Partnering with other financial institutions
or influencers in the industry could increase visibility and credibility.
 International Expansion: Exploring opportunities to provide services or
courses to an international audience could open up new revenue streams.

Threats:
 Regulatory Changes: Changes in regulations in the financial industry
could impact the company's operations or the way stock
recommendations are made.
 Economic Downturns: Economic recessions or downturns could lead to
reduced investments and demand for stock-related services.
 Cybersecurity Risks: Operating an e-learning platform involves
handling sensitive financial information, making it susceptible to cyber
threats, potentially damaging the company's reputation.
 Rapid Technological Changes: Failure to keep up with technological
advancements might make the company's offerings obsolete or less
attractive compared to competitors.
2.3 JOB ROLE:
1. Fund Analysis
2. Stock Market Traning
3. Recommendation
4. Bloggs

During my summer internship, I gained valuable insights into the basics of the
stock market, including an understanding of market trends, debt market
operations, future trading, options trading, and the workings of the commodity
market.
One of my key responsibilities was to send recommendations to customers
regarding which stocks to buy, applying the knowledge I had acquired during
the internship to assist them in making informed investment decisions.
In addition, I regularly contributed to the company's online presence by creating
and maintaining a blog where I posted timely news updates related to financial
markets, keeping both clients and the public informed about relevant
developments in the world of finance. I also got into the study of mutual fund
analysis, evaluating various funds, assessing their performance and risk profiles,
and providing recommendations based on my analysis. Overall, this summer
internship was an invaluable learning experience, equipping me with practical
skills and knowledge to excel in the finance and investment industry in the
future.
2.4 WEEKLY REPORT:

1st Week {15.06.2023 To 24.06.2023}

Weekly Tasks done:

How to analyse mutual fund.
Basics of equity and Debt market.
I conducted extensive research on various companies offering stock market courses,
evaluating their distinct features, unique offerings, and distinguishing characteristics.

2nd Week {26.05.2023 To 01.07.2023}

Weekly Tasks done:

Mutual fund analysis
Equity research economic analysis and global analysis
Blogging regular news
Provide recommendations

3rd Week {03.07.2023 To 08.07.2023}

Weekly Tasks done:

Technical analysis
Blogging regular news
Provide recommendation
4th Week {10.07.2023 To 15.07.2023}

Weekly Tasks done:

Derivatives and option strategies
Blogging regular news
Provide recommendation

2.5 LEARNINGS:
Stock Market Training:

Market Trends Analysis:

Technical Analysis: This involves studying past market data, primarily price
and volume, to forecast future price movements. It includes using charts,
patterns, and indicators to identify trends and potential entry/exit points for
stocks.

Options and Future Trading:

Derivatives Overview: Options and futures are financial contracts that derive
their value from an underlying asset (like stocks, commodities, or indices).
Understanding their characteristics, such as expiration dates, strike prices, and
premiums, is crucial.

Risk Management: Derivatives play a vital role in managing risks. For

instance, options can be used for hedging against potential losses or speculation
on future price movements.
Blogging:

Timely Updates:
Keeping Abreast of Market News: Staying updated with the latest financial
developments, market trends, and economic indicators allows for timely blog
updates. It involves researching and analyzing current events to provide
insightful commentary.

Overall Takeaways:
Practical Application:
Real-world Scenarios: Applying theoretical knowledge gained from textbooks
or classroom learning to actual investment situations provides a deeper
understanding of how markets function.

Client Interaction:
Understanding Client Needs: Recognizing that different clients have varied risk
appetites, investment goals, and time horizons is crucial. Tailoring
recommendations to suit their individual requirements builds trust and loyalty.

Industry Insights:
Market Dynamics: Learning how different financial instruments (stocks, bonds,
commodities) interact within the market ecosystem helps in comprehending the
broader landscape and making informed investment decisions.
 Chapter 3
ANALYSIS ON MUTUAL FUND
3.1 ABOUT:

ICICI Prudential Technology Fund:

ICICI Prudential Technology Direct Plan-Growth is a Sectoral-Technology mutual fund
scheme from Icici Prudential Mutual Fund. This fund has been in existence for 10 yrs 8 m,
having been launched on 01/01/2013. ICICI Prudential Technology Direct Plan-Growth has
₹11,159 Crores worth of assets under management (AUM) as on 30/06/2023 and is medium-
sized fund of its category. The fund has an expense ratio of 0.89%, which is close to what
most other Sectoral-technology funds charge.
• ICICI Prudential Technology Direct Plan-Growth returns of last 1-year are 18.94%. Since
launch, it has delivered 22.54% average annual returns. The fund has doubled the money
invested in it every 3 yrs.
• ICICI Prudential Technology Direct Plan-Growth scheme's ability to deliver returns
consistently is in-line with most funds of its category. Its ability to control losses in a falling
market is above average.
• The fund has the majority of its money invested in Technology, Communication, Services,
Capital Goods, Energy sectors. It has taken less exposure in Technology, Communication
sectors compared to other funds in the category.
• The fund's top 5 holdings are in Infosys Ltd., Tata Consultancy Services Ltd., Bharti Airtel
Ltd., HCL Technologies Ltd., Tech Mahindra Ltd.

Fund manager:
Mr. Vaibhav Dusad (Managing this fund since May, 2020 & Overall 12 years of experience)
Vaibhav dusad details: Mr. Dusad has done B.Tech, M.Tech and MBA
Prior to joining ICICI Prudential AMC Ltd, he has worked with Morgan Stanley, HSBC
Global Banking and Markets, CRISIL, Zinnov Mangement Consulting and Citibank
Singapore.
3.2 INVESTMENT OBJECTIVE:
The investment objective of the fund is that " The scheme will seek long term
capital appreciation by investing in equity and equity related securities of
technology and technology dependent companies. A large share of the AUM
will be invested in the stocks under the Benchmark Index, however, the scheme
may also invest in other companies which form a part of Information
Technology Services Industry.

3.3 TAX TREATMENT:

If sold after 1 year from purchase date, long term capital gain tax will be applicable. Current
tax rate is 10%, if your total long term capital gain exceeds 1 lakh. Any cess/surcharge is not
included.|If sold before 1 year from purchase date, short term capital gain tax will be
applicable. Current tax rate is 15%. Any cess/surcharge is not included in the 15%.

3.4 TOP HOLDINGS (in %):

Stocks Percentage
Infosys Ltd 28.12
Tata Consultancy Services 14.93
Bharti Airtel Ltd 8.47
HCL Technologies Ltd 7.18
Tech Mahindra Ltd 4.98
LTIMindtree Ltd 4.41
Wipro Ltd Shs Dematerialised 2.69
Persistent Systems Ltd 2.29
Zensar Technologies Ltd 2.19
Mphasis Ltd Shs Dematerialised 1.77
 3.5 SECTORAL COMPARISON: TECHNOLOGY

Fund name Annual Return

Aditya Birla Sun Life Digital India Fund 20.02%
ICICI Prudential Technology Fund 19.32%
SBI Technology Opportunities Fund 18.29%
Franklin India Technology Fund 16.73%

3.6 RETURNS (NAV as on 15 th

Nov, 2023):

Period ₹10000 Latest Absolute Annualised Category Rank within

Invested for Invested on Value Returns Returns Avg Category
1 Week 08-Nov-23 10154.70 1.55% - 1.60% 64/142
1 Month 13-Oct-23 10028.00 0.28% - 1.57% 113/140
3 Month 14-Aug-23 10430.70 4.31% - 5.92% 93/133
6 Month 15-May-23 11742.20 17.42% - 17.19% 63/125
YTD 30-Dec-22 11562.10 15.62% - 21.60% 94/121
1 Year 15-Nov-22 11089.20 10.89% 10.89% 20.82% 110/119
2 Year 15-Nov-21 9404.20 -5.96% -3.02% 10.49% 104/107
3 Year 13-Nov-20 18459.30 84.59% 22.62% 23.82% 50/95
5 Year 15-Nov-18 28412.80 184.13% 23.21% 17.47% 5/78
10 Year 14-Nov-13 57922.10 479.22% 19.19% 17.04% 13/59
Since 01-Jan-13 86421.60 764.22% 21.93% 15.82% 17/139
Inception
3.7 SIP RETURNS (NAV as on 15th November, 2023):

Period ₹1000 SIP Investments Latest Value Absolute Annualised

Invested for Started on Returns Returns
1 Year 15-Nov-22 12000 13236.21 10.3 % 19.55 %
2 Year 15-Nov-21 24000 26174.39 9.06 % 8.57 %
3 Year 13-Nov-20 36000 42451.08 17.92 % 10.99 %
5 Year 15-Nov-18 60000 107684.17 79.47 % 23.59 %
10 Year 14-Nov-13 120000 352628.35 193.86 % 20.43 %
 Chapter 4
ANALYSIS OF BENCHMARK
4.1 DETAILS:

The S&P BSE Teck TRI (Total Return Index) is a benchmark index that tracks
the performance of companies in the technology sector listed on the Bombay
Stock Exchange (BSE) in India. It consists of businesses in the media,
entertainment, telecommunications, and information technology sectors.
The Total Return Index differs from a regular price index as it also considers
dividends, distributions, and other cash payouts reinvested back into the index.
This gives a more complete picture of the index's performance by accounting
for changes in stock prices as well as returns from income-producing assets like
dividends.
The S&P BSE Teck TRI serves as a measure of how the technology sector is
performing within the Indian stock market and is used by investors and fund
managers to assess the performance of their tech-related investments against
this benchmark.

4.2 HISTORY:
The decade of 1990s saw the emergence of the TMT sector as a major force in
the Indian economy. The remarkable growth of this sector was reflected in the
financial markets.
Going by the trading pattern, around 19% of the turnover on the stock
exchanges is taking place in TMT sector stocks. These stocks collectively
account for 15% of the total market capitalization. The investment interest in
technology stocks continues unabated.
Recognizing the growing importance of the TMT sector, BSE TECk index was
launched in 2001.
4.3 KEY POINTS ABOUT BENCHMARK:

Sector Focus: The index is focused on companies within the technology sector. It includes
companies involved in various technological domains such as information technology,
telecommunications, media, and entertainment. These sectors represent businesses that
operate in the digital, communication, and entertainment spaces.

Constituent Selection: Companies included in the S&P BSE Teck TRI are chosen based on
specific criteria set by the index provider. These criteria may include market capitalization,
liquidity, and relevance to the technology sector.

Index Methodology: The index methodology typically involves weighting the included
companies based on factors like market capitalization or other measures of their significance
within the sector. Adjustments and rebalancing are periodically done to ensure the index
accurately represents the performance of the technology sector.

Total Return Index: As mentioned earlier, the 'Total Return' aspect of the index takes into
account not only the changes in stock prices of its constituent companies but also the
reinvestment of dividends or other distributions back into the index. This gives a more
comprehensive view of the actual returns generated by the index constituents.

Benchmarking and Analysis: Investors and fund managers often use the S&P BSE Teck
TRI as a benchmark to assess the performance of their investments in technology-related
companies. By comparing their portfolio returns to the index's performance, they can gauge
how well their investments are performing against the broader sector.

Market Impact: Changes in the S&P BSE Teck TRI can reflect shifts and trends in the
technology sector of the Indian market. Factors such as technological advancements,
regulatory changes, global market trends, and company-specific developments can influence
the index's performance.

Investment Products: Exchange-traded funds (ETFs), mutual funds, and other investment
products are often created to replicate or track the performance of this index, allowing
investors to gain exposure to the technology sector in India.
4.4 PERFORMANCE:

STOCKS PULLING INDICES UP:

Stock Name CMP Contribution
Bharti Airtel 961.60 27.70
TCS 3,519.30 21.08
HCL Tech 1,323.95 14.46
Wipro 400.00 8.31
INDUS TOWERS 192.25 5.22

STOCKS DRAGGING INDICES DOWN:

Stock Name CMP Contribution

Vodafone Idea 14.16 -6.57

Infosys 1,436.30 -1.94
Network 18 83.01 -0.78
Zee Entertain 243.35 -0.78
Sterlite Techno 152.60 -0.70
 CHAPTER – 5
COMPARISON BETWEEN FUND AND BENCHMARK
5.1 IMPORTANCE OF COMPARISON:
Comparing a mutual fund's performance against its benchmark is a pivotal yardstick for
investors. This comparison serves as a litmus test, offering a clear evaluation of how well the
fund has fared in relation to the broader market or a specific index. It's not just about
measuring success; it's also a tool to gauge risk. If a fund consistently outperforms its
benchmark, it indicates skilled management, while underperformance might signal potential
concerns. This comparison is a window into the fund's investment strategy, revealing whether
it aligns with its stated objectives. Additionally, it sets a benchmark for accountability,
fostering transparency between fund managers and investors. By leveraging these
comparisons, investors can set realistic expectations, evaluate diversification strategies, and
ultimately make more informed investment decisions.

5.2 RISK RATIOS:

1) Standard deviation:
High volatility- 17.75 vs 15.43 (category avg)
The Standard Deviation metric provides insight into the historical volatility of fund returns over the
past three years. A lower value signifies a more consistent performance. Therefore, when comparing
two funds within the same category, such as Fund A and Fund B, both having yielded 9% returns over
the last three years, if Fund A demonstrates a lower standard deviation compared to Fund B, it
suggests a greater likelihood for Fund A to maintain similar returns in the future, while Fund B's
returns might exhibit more variability.

2) Beta:
High volatility- 0.92 vs 0.86 (category avg)
Beta value gives idea about how volatile fund performance has been compared to similar funds in the
market. Lower beta implies the fund gives more predictable performance compared to similar funds in
the market. So, if you are comparing 2 funds (lets say Fund A and Fund B) in the same category. If
Fund A and Fund B has given 9% returns in last 3 years, but Fund A beta value is lower than Fund B.
So, you can say that there is a higher chance that Fund A will continue giving similar returns in future
also whereas Fund B returns may vary.
 3) Sharpe ratio:
Poor risk adjusted returns - 0.79 vs 0.97 (category avg)
The Sharpe ratio is a measure of how much return an investment generates for the level of
risk taken. A higher Sharpe ratio implies that the investment has achieved better returns
relative to the amount of risk it carries. It's computed by subtracting the risk-free return,
typically represented by a government bond yield, from the investment's returns and then
dividing that by the standard deviation of returns. For instance, if both fund A and fund B
boast 3-year returns of 15%, and fund A exhibits a Sharpe ratio of 1.40 while fund B's ratio is
1.25, opting for fund A could be advisable since it has delivered a higher risk-adjusted return.

4) Treynor's Ratio:
Poor risk adjusted returns – 0.15 vs 0.18 (category avg)
Treynor’s ratio assesses the excess return generated per unit of risk undertaken. A higher
value indicates that the fund has delivered superior returns in relation to the level of risk
assumed. It's calculated by subtracting the risk-free return, typically represented by an Indian
Government Bond yield, from the fund’s returns, and then dividing by the fund's beta.
For instance, suppose both fund A and fund B exhibit 3-year returns of 15%, and fund A
shows a Treynor’s ratio of 1.40 while fund B's ratio is 1.25. In such a scenario, choosing fund
A might be advisable as it has produced a higher risk-adjusted return compared to fund B.

5) Jension's Alpha:
Better risk adjusted returns – 5.88 vs 3.17 (category avg)
Indeed, alpha measures a fund's excess return compared to its benchmark. If a fund, let's say
Fund A, benchmarks its performance against the Nifty50 index, an alpha of 1.0 signifies that
the fund has outperformed the Nifty returns by 1%. In essence, a higher alpha denotes that the
fund has generated greater additional returns above its benchmark, indicating better
performance relative to the chosen index or benchmark.
5.3 COMPARISON:

The ICICI Prudential Technology Direct Growth Plan Fund has shown
impressive growth of 13.33%, outperforming its benchmark, the S&P BSE Teck
TRI, which had a growth of 6.41%. This significant difference suggests that the
fund's management has been successful in generating higher returns compared
to the overall technology sector represented by the benchmark.
A growth rate of 13.33% indicates that the fund has made substantial gains over
a specific period, reflecting effective investment strategies and potentially good
stock selections within the technology sector. This outperformance against the
benchmark (6.41%) suggests that the fund's performance has exceeded the
average performance of the sector.
Investors might view this positively, as it indicates that the fund managers have
been successful in leveraging opportunities within the technology industry to
generate higher returns compared to the broader market represented by the
benchmark. However, it's essential to consider this performance in the context
of the fund's risk profile, expense ratio, and investment objectives before
making investment decisions.
CHAPTER – 6
FINDINGS
FINDINGS:
Performance:
Consistent Growth: Over a range of time periods, the fund has consistently
produced returns. Investors looking for stability and predictability in their
investments find this consistency to be an appealing quality.

Outperforming Benchmark: The fund has continuously exceeded the S&P

BSE Technology index, which is its benchmark. This suggests that it has been
managed well to produce higher returns than the technology sector's general
market performance. Its superior performance over some of its competitor funds
in the same category further indicates its competitive advantage in the industry.

Risk:
Higher Volatility Metrics: The fund's volatility is measured in relation to its
benchmark and category average using metrics like beta and standard deviation.
Wider price swings are indicated by a bigger standard deviation, which also
indicates increased volatility and possibly higher risk. A fund's beta value,
which measures its responsiveness to fluctuations in the market, also suggests
that it is somewhat more volatile than the category average.
Risk-Adjusted Return Metrics: Two ways to quantify risk-adjusted returns
are with the Treynor and Sharpe ratios. The fund may earn returns, but at a
lower risk-adjusted rate than its rivals in the technology fund category,
according to its lower Sharpe and Treynor ratios when compared to the category
average.
 Chapter 7
RECOMMENDATION
RECOMMENDATIONS:

Performance Consistency Check: Despite outperforming the benchmark,

observe the fund's performance consistency over different market cycles via
rolling returns to gauge its reliability.
Risk-Return Balance: Although the fund shows greater volatility, Jension's
Alpha indicates a stronger risk-adjusted return. Further investigation is
necessary to fully understand the risk-return trade-off.
Comparative Analysis Depth: For a thorough picture, look more into the fund
manager's approach, fund composition, and performance impact of market
circumstances.
 Chapter 8

CONCLUSION
CONCLUSION:

In conclusion, the comparative analysis between the ICICI Prudential

Technology Fund Direct-Growth Plan and the S&P BSE Technology index
illuminates distinct facets of investment strategies within the technology sector.
Studying past results revealed slight variations between active management and
passive index tracking, highlighting times when each option performed better
and worse. Long-term stability and durability have been shown by the index,
however the actively managed fund showed potential for higher returns in
specific market scenarios. Risk evaluations brought to light different degrees of
volatility, highlighting the necessity for investors to match their investing
decisions with their risk tolerance. Furthermore, the expenditure ratio of the
fund had an effect on overall returns, making cost efficiency another important
element. However, the analysis reinforces the importance of individual investor
goals, risk tolerance, and investment horizons, as preferences might lean
towards either active management or passive index tracking based on specific
needs. Ultimately, this study underscores the significance of informed decision-
making, encouraging investors to weigh historical performances, risk factors,
and cost implications when navigating investment options in the ever-evolving
technology sector.
BIBLIOGRAPHY:
https://www.etmoney.com/mutual-funds/icici-prudential-technology-direct-plan-growth/15431

https://www.moneycontrol.com/mutual-funds/nav/icici-prudential-technology-fund-direct-plan/
MPI1128

https://www.moneycontrol.com/mutual-funds/nav/icici-prudential-technology-fund-direct-plan-
growth/MPI1128

https://www.moneycontrol.com/indian-indices/bse-teck-10.html