How do I invest in technology companies? Safe and Assured

Working in Software company vs Investing in Software companies. Investing makes you Crorepati.

Have you read the famous headline “if one had invested 10,000 or bought nearly 100 shares of Infosys back in 1993, it would be worth over Rs 2 crore as on June 12”. India has 50 Lakhs software engineers and in this only 18% invest in stock market. Investing in equity market would give you better returns in long term.

Legendary investor Warren Buffett once said, “Buy it thinking you will hold it forever”.

Working in software company would help you to earn money. But investing in software and technology company will help you reach financial freedom and wealth creation. Start investing 10% of your investment in technology companies.

How to invest in Technology companies:

You can directly invest in technologies companies in the equity market. You have to do fundamental analysis before investing into companies. Here is the list of well established Technology companies to invest in.

Infosys Ltd
Tata Consultancy Services Ltd
HCL Technologies Ltd
Persistent Systems Ltd
Tech Mahindra Ltd
Wipro Ltd
MindTree Ltd
Birlasoft Ltd
Info Edge (India) Ltd
Cyient Ltd
Honeywell Automation India Ltd
Persistent Systems Ltd
Firstsource Solutions Ltd
MakeMyTrip Ltd
Larsen & Toubro Infotech Ltd

Learn fundamental analysis and start investing in quality stock whenever you get an opportunity. Invest for long term(more than 15 years). It would accumulate lumpsum for your kids higher education or for your daughter’s marriage. In case you want diversify your investment by investing multiple software companies, there is an option to invest only in technology stock by sector mutual funds.

Technology sector funds:

Technology sector funds invest in high quality technologies stock with expert’s guidance. It gives you opportunity to invest in monthly SIP with diversification. Here is list of Technology Sector Funds in the mutual funds category.

ICICI Prudential Technology Growth Direct Plan
Aditya Birla Sun Life Digital India Growth Direct Plan
Franklin India Technology Growth Direct Plan
Tata Digital India Growth Direct Plan
SBI Technology Opportunities Growth Direct Plan

ICICI Prudential Technology Growth Direct Fund:

This fund to generate long-term capital appreciation by creating a portfolio that is invested in equity and equity related securities of technology and technology dependent companies. This fund invest in TCS, infosys, Wipro, HCL Tech Mahindra and many more. The expense ratio of the fund is 1.4% and it has given 30% returns for 3 years as of April 2021.

Major investment in :

TCS
Infosys
Wipro
HCL
Tech Mahindra

Aditya Birla Sun Life Digital India Growth Direct Fund:

The primary investment objective of the fund is to generate long term growth of capital, through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. Expense ratio of the fund is 1.3% and it provided 27% in last 3 years. Major investment in TCS, Infosys, Tech Mahindra, HL and many more technology companies

Investment diversified in

Infosys
TCS
Tech Mahindra
HCL
Persistent systems ltd

Franklin India Technology Growth Direct Fund:

This fund aim to provide long-term capital appreciation by predominantly investing in equity and equity related securities of technology and technology related companies. Expense ratio of the fund is 1.7% and it is high in this category. Due to high expense ratio, it returned 26% in last one year instead of 27%+ in other funds.

Technology companies invested in

Infosys
TCS
HCL
Bharti Airtel
Tech Mahindra

Tata Digital India Growth Direct Fund:

The investment objective of this fund is to seek long term capital appreciation by investing atleast 80% of its net assets in equity/equity related instruments of the companies in Information Technology Sector in India. Expense ratio of the fund is 0.9%. It is lowest expense ratio fund in technology sector funds. It provided 30% returns in last one year and 121% return for one year investment.

Software companies invested in

Infosys
TCS
HCL
Tech mahindra
Wipro

SBI Technology Opportunities Growth Direct Fund:

This fund to provide the investor with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities in technology and technology related companies. This fund invests in Alphabet, Microsoft, Infosys, TCS, HCL, Tech Mahindra and many more. It invests in both Indian and international technology company like Google(Alphabet) and Microsoft.

Major investment in

Alphabet
Microsoft
Infosys
TCS
HCL

Sectoral mutual funds are more volatile as it invests in focused category. It would give better return in long term. Continue to invest more than 15 years in the technology funds in SIP. You can plan 10% to 20% of your monthly mutual fund investment in any one of the funds. Start invest now to grow your money with software industry.