The technology sector is a category of equity fund that invest in companies involved in technological businesses, such as manufacturers producing computer software and hardware. It also includes electronics & technological service companies such as those providing information technology, etc. The greatest advantage of Investing in technology Mutual Funds is that investors can gain access and exposure to dozens of technology stocks in just one fund.
India's IT Services Industry was born in Mumbai in 1967 with the establishment of the Tata Group in partnership with Burroughs. The first software export zone, SEEPZ, the precursor to the modern-day IT park, was established in Mumbai in 1973. More than 80 percent of the country's software exports were from SEEPZ in the 1980s.
Technology and IT Sector in India
The technology sector in India is undergoing rapid evolution and is changing the shape of Indian business standards. The global sourcing Market in India continues to grow at a higher pace. The country remained world’s top sourcing destination in 2016-17 with a share of 55%.
India’s IT industry contributed around
7.7%to the country’s GDP and is expected to contribute10%by 2025.
During COVID-19 pandemic Indian IT industry showed positive signs and had the resilience to overcome this mass tragedy. It has emerged as a global economic force and a major contributor to the Indian Economy in particular and the world in general.
Some of India’s leading IT firms are Infosys, TCS, Wipro, Tech Mahindra, etc., that have created a huge mark in the sector.
Technology mutual funds in India have consistently provided an annualized return of 15 percent to 19 percent over a five year period. With such a decent performance in the past, these funds are believed to deliver good returns in the future too.
Ideally, investors should invest in this fund for the purpose of diversification. One should not solely depend on this fund for wealth creation. Investors who are planning to invest in technology funds must closely watch the funds’ past 3 years’ performances. One should have an in-depth knowledge about the technology sector and its future market.
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Top 5 Best Technology (IT) Sector Funds in India FY 24 - 25
To provide long-term capital appreciation by predominantly investing in equity and equity related securities of technology and technology related companies. Franklin India Technology Fund is a Equity - Sectoral fund was launched on 22 Aug 98. It is a fund with High risk and has given a Below is the key information for Franklin India Technology Fund Total investment amount is ₹300,000 Returns up to 1 year are on To generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies. ICICI Prudential Technology Fund is a Equity - Sectoral fund was launched on 3 Mar 00. It is a fund with High risk and has given a Below is the key information for ICICI Prudential Technology Fund Total investment amount is ₹300,000 Returns up to 1 year are on (Erstwhile SBI IT Fund) To provide the investors maximum growth opportunity through equityinvestments in stocks of growth oriented sectors of the economy. SBI Technology Opportunities Fund is a Equity - Sectoral fund was launched on 9 Jan 13. It is a fund with High risk and has given a Below is the key information for SBI Technology Opportunities Fund Total investment amount is ₹300,000 Returns up to 1 year are on The investment objective of the scheme 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.However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.The Scheme does not assure or guarantee any returns. TATA Digital India Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has given a Below is the key information for TATA Digital India Fund Total investment amount is ₹300,000 Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life New Millennium Fund) A multi-sector open-ended growth scheme with the objective of 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. The secondary objective is income generation and distribution of dividend. Aditya Birla Sun Life Digital India Fund is a Equity - Sectoral fund was launched on 15 Jan 00. It is a fund with High risk and has given a Below is the key information for Aditya Birla Sun Life Digital India Fund Total investment amount is ₹300,000 Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) Franklin India Technology Fund Growth ₹448.685
↑ 10.14 ₹1,280 8.3 20.1 56.7 17 22.8 51.1 ICICI Prudential Technology Fund Growth ₹179.34
↑ 3.96 ₹12,249 8.8 14.6 36.1 18.1 25.1 27.5 SBI Technology Opportunities Fund Growth ₹183.16
↑ 3.86 ₹3,758 8 12.3 31.8 19.7 23.5 24.8 TATA Digital India Fund Growth ₹43.4996
↓ -0.05 ₹9,702 8.7 16.9 39.9 18.9 24.1 31.9 Aditya Birla Sun Life Digital India Fund Growth ₹161.84
↑ 3.08 ₹4,717 5.4 13.2 39.3 18.4 25.1 35.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Mar 24 1. Franklin India Technology Fund
CAGR/Annualized return of 19.2% since its launch. Ranked 41 in Sectoral category. Return for 2023 was 51.1% , 2022 was -22.3% and 2021 was 39% . Franklin India Technology Fund
Growth Launch Date 22 Aug 98 NAV (14 Mar 24) ₹448.685 ↑ 10.14 (2.31 %) Net Assets (Cr) ₹1,280 on 31 Jan 24 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk High Expense Ratio 2.42 Sharpe Ratio 2.37 Information Ratio 0.35 Alpha Ratio 21.12 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹10,274 28 Feb 21 ₹16,771 28 Feb 22 ₹19,857 28 Feb 23 ₹18,083 29 Feb 24 ₹28,609 Franklin India Technology Fund SIP Returns
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691 Returns for Franklin India Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Mar 24 Duration Returns 1 Month 0.9% 3 Month 8.3% 6 Month 20.1% 1 Year 56.7% 3 Year 17% 5 Year 22.8% 10 Year 15 Year Since launch 19.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 51.1% 2022 -22.3% 2021 39% 2020 56.8% 2019 12.4% 2018 11.9% 2017 19.1% 2016 -2.6% 2015 3.8% 2014 16.8% Fund Manager information for Franklin India Technology Fund
Name Since Tenure R. Janakiraman 1 Dec 23 0.25 Yr. Varun Sharma 30 Nov 15 8.26 Yr. Sandeep Manam 18 Oct 21 2.37 Yr. Data below for Franklin India Technology Fund as on 31 Jan 24
Equity Sector Allocation
Sector Value Technology 53.39% Consumer Cyclical 13.16% Communication Services 12.54% Financial Services 9.97% Industrials 3.65% Health Care 0.08% Asset Allocation
Asset Class Value Cash 4.59% Equity 95.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity PB Fintech Ltd (Financial Services)
Equity, Since 30 Nov 21 | 54339010% ₹123 Cr 1,228,812
↑ 63,508 Zomato Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | 5433209% ₹115 Cr 8,244,316 Franklin Technology I Acc USD
Investment Fund | -7% ₹90 Cr 175,810 Zensar Technologies Ltd (Technology)
Equity, Since 31 Jan 23 | ZENSARTECH4% ₹55 Cr 963,216
↑ 37,546 HCL Technologies Ltd (Technology)
Equity, Since 30 Jun 14 | HCLTECH4% ₹54 Cr 340,735 Birlasoft Ltd (Technology)
Equity, Since 31 May 23 | BSOFT4% ₹48 Cr 570,942
↓ -30,238 TeamLease Services Ltd (Industrials)
Equity, Since 31 Dec 22 | TEAMLEASE4% ₹47 Cr 163,203
↑ 15,116 Mphasis Ltd (Technology)
Equity, Since 30 Jun 22 | 5262994% ₹45 Cr 174,745
↑ 9,552 IndiaMART InterMESH Ltd (Communication Services)
Equity, Since 31 Aug 20 | INDIAMART3% ₹43 Cr 170,415
↑ 21,875 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 04 | TCS3% ₹41 Cr 108,105 2. ICICI Prudential Technology Fund
CAGR/Annualized return of 12.8% since its launch. Ranked 37 in Sectoral category. Return for 2023 was 27.5% , 2022 was -23.2% and 2021 was 75.7% . ICICI Prudential Technology Fund
Growth Launch Date 3 Mar 00 NAV (14 Mar 24) ₹179.34 ↑ 3.96 (2.26 %) Net Assets (Cr) ₹12,249 on 31 Jan 24 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk High Expense Ratio 1.96 Sharpe Ratio 1.61 Information Ratio 1.1 Alpha Ratio 5.37 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹9,477 28 Feb 21 ₹16,961 28 Feb 22 ₹25,154 28 Feb 23 ₹22,365 29 Feb 24 ₹29,924 ICICI Prudential Technology Fund SIP Returns
expected amount after 5 Years is ₹570,326.
Net Profit of ₹270,326 Returns for ICICI Prudential Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Mar 24 Duration Returns 1 Month -0.2% 3 Month 8.8% 6 Month 14.6% 1 Year 36.1% 3 Year 18.1% 5 Year 25.1% 10 Year 15 Year Since launch 12.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 27.5% 2022 -23.2% 2021 75.7% 2020 70.6% 2019 2.3% 2018 19.1% 2017 19.8% 2016 -4% 2015 3.9% 2014 26.3% Fund Manager information for ICICI Prudential Technology Fund
Name Since Tenure Vaibhav Dusad 2 May 20 3.83 Yr. Sharmila D’mello 30 Jun 22 1.67 Yr. Data below for ICICI Prudential Technology Fund as on 31 Jan 24
Equity Sector Allocation
Sector Value Technology 75.53% Communication Services 14.21% Industrials 3.68% Consumer Cyclical 2.44% Consumer Defensive 0.39% Asset Allocation
Asset Class Value Cash 3.01% Equity 96.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY24% ₹2,881 Cr 17,347,801
↓ -614,398 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 19 | TCS14% ₹1,744 Cr 4,569,353
↑ 115,803 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL9% ₹1,049 Cr 8,960,379
↓ -1,174,968 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 20 | HCLTECH8% ₹940 Cr 5,965,658
↓ -520,784 Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | 5327556% ₹752 Cr 5,641,110
↓ -325,493 LTIMindtree Ltd (Technology)
Equity, Since 31 Jul 16 | LTIM5% ₹567 Cr 1,040,020
↑ 129,848 Persistent Systems Ltd (Technology)
Equity, Since 31 May 20 | PERSISTENT3% ₹346 Cr 414,729
↓ -21,881 Bharti Airtel Ltd (Partly Paid Rs.1.25) (Communication Services)
Equity, Since 31 Oct 21 | 8901572% ₹223 Cr 2,897,946
↑ 403,204 Mphasis Ltd (Technology)
Equity, Since 30 Jun 20 | 5262992% ₹208 Cr 798,768
↑ 139,334 Firstsource Solutions Ltd (Technology)
Equity, Since 30 Nov 21 | FSL2% ₹194 Cr 9,502,917
↑ 237,783 3. SBI Technology Opportunities Fund
CAGR/Annualized return of 20.4% since its launch. Ranked 42 in Sectoral category. Return for 2023 was 24.8% , 2022 was -15.5% and 2021 was 66.4% . SBI Technology Opportunities Fund
Growth Launch Date 9 Jan 13 NAV (14 Mar 24) ₹183.16 ↑ 3.86 (2.15 %) Net Assets (Cr) ₹3,758 on 31 Jan 24 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆ Risk High Expense Ratio 2.06 Sharpe Ratio 1.45 Information Ratio 1.01 Alpha Ratio 3.67 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹10,272 28 Feb 21 ₹15,656 28 Feb 22 ₹22,584 28 Feb 23 ₹22,079 29 Feb 24 ₹28,598 SBI Technology Opportunities Fund SIP Returns
expected amount after 5 Years is ₹543,623.
Net Profit of ₹243,623 Returns for SBI Technology Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Mar 24 Duration Returns 1 Month 0.1% 3 Month 8% 6 Month 12.3% 1 Year 31.8% 3 Year 19.7% 5 Year 23.5% 10 Year 15 Year Since launch 20.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 24.8% 2022 -15.5% 2021 66.4% 2020 47.3% 2019 12.2% 2018 17.1% 2017 13% 2016 -3.3% 2015 2.4% 2014 29.2% Fund Manager information for SBI Technology Opportunities Fund
Name Since Tenure Saurabh Pant 1 Jan 22 2.16 Yr. Mohit Jain 30 Nov 17 6.25 Yr. Data below for SBI Technology Opportunities Fund as on 31 Jan 24
Equity Sector Allocation
Sector Value Technology 70.86% Communication Services 21.83% Industrials 3.47% Consumer Cyclical 2.75% Asset Allocation
Asset Class Value Cash 1.11% Equity 98.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY25% ₹950 Cr 5,673,433 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 06 | TCS11% ₹440 Cr 1,073,755 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL9% ₹326 Cr 2,900,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 22 | 5327557% ₹252 Cr 1,980,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Mar 06 | HCLTECH6% ₹231 Cr 1,390,000 Wipro Ltd (Technology)
Equity, Since 30 Apr 21 | 5076854% ₹153 Cr 2,947,197 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 23 | FSL4% ₹144 Cr 7,000,000 Delhivery Ltd (Industrials)
Equity, Since 31 Jan 23 | 5435294% ₹137 Cr 2,900,000 Coforge Ltd (Technology)
Equity, Since 31 Aug 23 | COFORGE4% ₹137 Cr 209,000 Microsoft Corp (Technology)
Equity, Since 31 Aug 20 | MSFT3% ₹130 Cr 38,000 4. TATA Digital India Fund
CAGR/Annualized return of 19.6% since its launch. Return for 2023 was 31.9% , 2022 was -23.3% and 2021 was 74.4% . TATA Digital India Fund
Growth Launch Date 28 Dec 15 NAV (15 Mar 24) ₹43.4996 ↓ -0.05 (-0.12 %) Net Assets (Cr) ₹9,702 on 31 Jan 24 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Not Rated Risk High Expense Ratio 1.13 Sharpe Ratio 1.76 Information Ratio 1.07 Alpha Ratio 7.69 Min Investment 5,000 Min SIP Investment 150 Exit Load 0-3 Months (0.25%),3 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹9,823 28 Feb 21 ₹15,971 28 Feb 22 ₹23,741 28 Feb 23 ₹21,158 29 Feb 24 ₹29,320 TATA Digital India Fund SIP Returns
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833 Returns for TATA Digital India Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Mar 24 Duration Returns 1 Month -0.3% 3 Month 8.7% 6 Month 16.9% 1 Year 39.9% 3 Year 18.9% 5 Year 24.1% 10 Year 15 Year Since launch 19.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 31.9% 2022 -23.3% 2021 74.4% 2020 54.8% 2019 7.5% 2018 24.9% 2017 19.6% 2016 -6% 2015 2014 Fund Manager information for TATA Digital India Fund
Name Since Tenure Meeta Shetty 9 Mar 21 2.98 Yr. Kapil Malhotra 19 Dec 23 0.2 Yr. Data below for TATA Digital India Fund as on 31 Jan 24
Equity Sector Allocation
Sector Value Technology 77.91% Industrials 5.67% Financial Services 5.07% Consumer Cyclical 4.53% Communication Services 3.54% Asset Allocation
Asset Class Value Cash 3.28% Equity 96.72% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 16 | INFY20% ₹1,899 Cr 11,434,598 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 16 | TCS14% ₹1,337 Cr 3,503,873
↓ -306,365 Tech Mahindra Ltd (Technology)
Equity, Since 30 Apr 16 | 5327559% ₹846 Cr 6,345,933
↑ 175,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Jan 16 | HCLTECH8% ₹785 Cr 4,983,886 LTIMindtree Ltd (Technology)
Equity, Since 28 Feb 21 | LTIM7% ₹647 Cr 1,188,062 Wipro Ltd (Technology)
Equity, Since 31 Jul 18 | 5076855% ₹482 Cr 10,071,381 Zomato Ltd (Consumer Cyclical)
Equity, Since 31 Oct 22 | 5433204% ₹404 Cr 28,967,000
↑ 500,000 PB Fintech Ltd (Financial Services)
Equity, Since 31 Dec 22 | 5433903% ₹315 Cr 3,142,425 Persistent Systems Ltd (Technology)
Equity, Since 31 Jan 16 | PERSISTENT3% ₹313 Cr 374,596 Cyient Ltd (Industrials)
Equity, Since 28 Feb 21 | CYIENT3% ₹312 Cr 1,580,043 5. Aditya Birla Sun Life Digital India Fund
CAGR/Annualized return of 12.2% since its launch. Ranked 33 in Sectoral category. Return for 2023 was 35.8% , 2022 was -21.6% and 2021 was 70.5% . Aditya Birla Sun Life Digital India Fund
Growth Launch Date 15 Jan 00 NAV (14 Mar 24) ₹161.84 ↑ 3.08 (1.94 %) Net Assets (Cr) ₹4,717 on 31 Jan 24 Category Equity - Sectoral AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆ Risk High Expense Ratio 2.08 Sharpe Ratio 2 Information Ratio 1.19 Alpha Ratio 10.87 Min Investment 1,000 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹10,292 28 Feb 21 ₹17,117 28 Feb 22 ₹24,190 28 Feb 23 ₹22,328 29 Feb 24 ₹30,859 Aditya Birla Sun Life Digital India Fund SIP Returns
expected amount after 5 Years is ₹570,326.
Net Profit of ₹270,326 Returns for Aditya Birla Sun Life Digital India Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Mar 24 Duration Returns 1 Month -1.6% 3 Month 5.4% 6 Month 13.2% 1 Year 39.3% 3 Year 18.4% 5 Year 25.1% 10 Year 15 Year Since launch 12.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 35.8% 2022 -21.6% 2021 70.5% 2020 59% 2019 9.6% 2018 15.6% 2017 22.4% 2016 -3.5% 2015 11.2% 2014 21.1% Fund Manager information for Aditya Birla Sun Life Digital India Fund
Name Since Tenure Kunal Sangoi 16 Jan 14 10.13 Yr. Dhaval Joshi 21 Nov 22 1.28 Yr. Data below for Aditya Birla Sun Life Digital India Fund as on 31 Jan 24
Equity Sector Allocation
Sector Value Technology 75.95% Communication Services 9.76% Industrials 8.25% Consumer Cyclical 3.39% Asset Allocation
Asset Class Value Cash 2.66% Equity 97.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 05 | INFY24% ₹1,145 Cr 6,842,361
↓ -12,237 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 05 | TCS11% ₹532 Cr 1,299,055
↑ 21,726 HCL Technologies Ltd (Technology)
Equity, Since 31 Dec 10 | HCLTECH8% ₹405 Cr 2,432,716
↓ -330,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 19 | BHARTIARTL7% ₹334 Cr 2,974,697
↑ 200,000 LTIMindtree Ltd (Technology)
Equity, Since 31 Mar 21 | LTIM7% ₹329 Cr 619,910 Cyient Ltd (Industrials)
Equity, Since 31 May 14 | CYIENT5% ₹233 Cr 1,152,664 Coforge Ltd (Technology)
Equity, Since 30 Jun 20 | COFORGE4% ₹193 Cr 294,778 Zomato Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | 5433203% ₹129 Cr 7,770,939
↑ 474,216 Sonata Software Ltd (Technology)
Equity, Since 30 Nov 19 | SONATSOFTW3% ₹124 Cr 1,533,192 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 13 | 5327552% ₹118 Cr 924,930
Who Should Invest in IT Mutual Funds?
As the technology fund belongs to the sector category of Equity Funds they carry high-risk with them. Thus, investors who have the ability to tolerate risk in their investment should only plan to invest in these funds. Also, it is suggested that one should invest for a longer duration, more than five years, to attain long-term benefits of the equity market.
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