- Date : 05/08/2022
- Read: 3 mins
Technology investments have done well over the years, but how to ensure a steady performance without being heavily dependent on this segment is unclear.
It has long been predicted by experts that tech stocks would do well this year. The market witnessed high investments in the tech sector by the Indian government post-pandemic. Predictions were that the Indian stock market would be leveraged by fantastic performances by tech companies.
READ ALSO: How does big Tech make its billions?
Top-performing Technology stocks
As per tech market news, technology stocks have outperformed all other sectors. Tech companies have more than wiped out their memories of the pandemic period financial crisis and its imminent effects. The stock prices of tech stocks have stabilised the market and prevented a complete recession. Also, as demand for new technology increases, IT companies keep upscaling themselves through innovation and R&D. The IT sector has been the world’s best equity market since its record low in March 2020. India’s IT sector has always performed highly in productivity. The worries in the Indian IT sector were the high attrition rate in the tech industry, high demand for IT salaries, and sustained demand for talent during the pandemic period.
The well-known IT stock investments would be Tech Mahindra Ltd, Infosys Ltd, Tata Consultancy Services Ltd, and HCL Technologies.
READ ALSO: Why Tech is the new oil?
Money for Investment in the IT Sector
The biggest buzz during the pandemic period has been the $27 billion fund for Reliance's nonenergy business and the PAYTM $2.5 billion IPO. Indian technology companies have been steady in their performance during the pandemic. Indian IT companies have faced more than five recessions in the past 20 years. As a result, these companies always saved on costs. It is said that Indian equity markets are laden with investments and resources. So, if major investments are made in other sectors, like the recent LIC share listing, there is still enough cash in the Indian markets to invest in IT sectors and other sectors.
Digitisation is an accepted method now in India and people have grown used to adapting to this method of digital business and transactions.
Balance your IT portfolio.
One way of ensuring your portfolio’s high performance is to trim or prune your successful IT stocks. For instance, you preserve the investments that have generated returns of at least 10%. You can sell those who have performed well but have not generated profits of more than 5%. You will always be buying low and selling high if you do this. That kind of money could be invested in another sector.
READ ALSO: India’s Top 10 digital wallets
Based on your age, plan your investment objectives.
People in their 40s should have 80% of their money invested in stocks and 20% in bonds.
People in their 50s should have 35% in bonds and 65% in equity.
People in their 60s should have 50% of their money invested in stocks, 40% in bonds, and 10% in money markets.
Try using this spread based on your age whenever you make investments. Rearrange your portfolio accordingly.
Why invest in the market now?
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
It has long been predicted by experts that tech stocks would do well this year. The market witnessed high investments in the tech sector by the Indian government post-pandemic. Predictions were that the Indian stock market would be leveraged by fantastic performances by tech companies.
READ ALSO: How does big Tech make its billions?
Top-performing Technology stocks
As per tech market news, technology stocks have outperformed all other sectors. Tech companies have more than wiped out their memories of the pandemic period financial crisis and its imminent effects. The stock prices of tech stocks have stabilised the market and prevented a complete recession. Also, as demand for new technology increases, IT companies keep upscaling themselves through innovation and R&D. The IT sector has been the world’s best equity market since its record low in March 2020. India’s IT sector has always performed highly in productivity. The worries in the Indian IT sector were the high attrition rate in the tech industry, high demand for IT salaries, and sustained demand for talent during the pandemic period.
The well-known IT stock investments would be Tech Mahindra Ltd, Infosys Ltd, Tata Consultancy Services Ltd, and HCL Technologies.
READ ALSO: Why Tech is the new oil?
Money for Investment in the IT Sector
The biggest buzz during the pandemic period has been the $27 billion fund for Reliance's nonenergy business and the PAYTM $2.5 billion IPO. Indian technology companies have been steady in their performance during the pandemic. Indian IT companies have faced more than five recessions in the past 20 years. As a result, these companies always saved on costs. It is said that Indian equity markets are laden with investments and resources. So, if major investments are made in other sectors, like the recent LIC share listing, there is still enough cash in the Indian markets to invest in IT sectors and other sectors.
Digitisation is an accepted method now in India and people have grown used to adapting to this method of digital business and transactions.
Balance your IT portfolio.
One way of ensuring your portfolio’s high performance is to trim or prune your successful IT stocks. For instance, you preserve the investments that have generated returns of at least 10%. You can sell those who have performed well but have not generated profits of more than 5%. You will always be buying low and selling high if you do this. That kind of money could be invested in another sector.
READ ALSO: India’s Top 10 digital wallets
Based on your age, plan your investment objectives.
People in their 40s should have 80% of their money invested in stocks and 20% in bonds.
People in their 50s should have 35% in bonds and 65% in equity.
People in their 60s should have 50% of their money invested in stocks, 40% in bonds, and 10% in money markets.
Try using this spread based on your age whenever you make investments. Rearrange your portfolio accordingly.
Why invest in the market now?
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
