Technology Mutual Funds: Best IT sector equity funds in India (2024)

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Technology Mutual Funds: Best IT sector equity funds in India (1)

  • Average Return 20.14%
  • No of Funds 9

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What is Sectoral-Technology Mutual Fund

Sectoral mutual funds are equity funds that put the entire money in one sector. For instance, an IT sector fund invests only in IT companies, a banking sector fund only in banks and so on. This one sector only exposure make them one of the riskiest mutual funds.

Advantages of Sectoral-Technology Funds

  • Lack of diversification means if the sector faces challenging times, so will your investments
  • Not more than 10% of your portfolio should be allocated to this fund category
  • If you invest, be prepared to stay invested for at least 7+ year

Top schemes of Sectoral-Technology Mutual Funds sorted by last 5 year returns

9 funds

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Technology Mutual Funds: Best IT sector equity funds in India (2)

Tata Digital India Fund

#3 of 5

Fund Size

₹10,068 Crs

Return (p.a)

-24.47% -1.9% + 11.71%+ 1.72% + 39.57%+ 9.84% + 45.69%+ 22.77% + 19.86%+ 33.53% + 27.6%+ 96.92%

ETM Rank

#3 of 5

Invest

Technology Mutual Funds: Best IT sector equity funds in India (3)

ICICI Prudential Technology Fund

#2 of 5

Fund Size

₹12,224 Crs

Return (p.a)

-22.69% -1.75% + 10.17%+ 1.5% + 34.59%+ 8.71% + 41.3%+ 20.69% + 17.38%+ 28.99% + 27.53%+ 96.6%

ETM Rank

#2 of 5

Technology Mutual Funds: Best IT sector equity funds in India (4)

Aditya Birla Sun Life Digital India Fund

#4 of 5

Fund Size

₹4,814 Crs

Return (p.a)

-35.5% -2.96% -3.58% -0.56% + 24.94%+ 6.44% + 39.02%+ 19.6% + 19.31%+ 32.52% + 27.43%+ 96.14%

ETM Rank

#4 of 5

Invest

Technology Mutual Funds: Best IT sector equity funds in India (5)

Franklin India Technology Fund

#5 of 5

Fund Size

₹1,366 Crs

Return (p.a)

-17.4% -1.3% + 12.76%+ 1.86% + 42.66%+ 10.53% + 55.14%+ 27.2% + 24.85%+ 43.01% + 26.2%+ 90.5%

ETM Rank

#5 of 5

Invest

Technology Mutual Funds: Best IT sector equity funds in India (6)

SBI Technology Opportunities Fund

#1 of 5

Fund Size

₹3,828 Crs

Return (p.a)

-25.74% -2.02% + 9.23%+ 1.37% + 30.78%+ 7.83% + 35.52%+ 17.92% + 18.59%+ 31.2% + 25.55%+ 87.59%

ETM Rank

#1 of 5

Invest

Technology Mutual Funds: Best IT sector equity funds in India (7)

Edelweiss Technology Fund

Unranked

Fund Size

NA

Return (p.a)

N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A.

ETM Rank

Unranked

Technology Mutual Funds: Best IT sector equity funds in India (8)

HDFC Technology Fund

Unranked

Fund Size

₹986 Crs

Return (p.a)

-22.86% -1.97% + 10.64%+ 1.65% + 33.21%+ 8.65% N.A.N.A. N.A.N.A. N.A.N.A.

ETM Rank

Unranked

Invest

Technology Mutual Funds: Best IT sector equity funds in India (9)

Kotak Technology Fund

Unranked

Fund Size

NA

Return (p.a)

N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A.

ETM Rank

Unranked

Invest

Technology Mutual Funds: Best IT sector equity funds in India (10)

Quant Teck Fund

Unranked

Fund Size

₹328 Crs

Return (p.a)

-47.69% -4.85% + 12.12%+ 1.87% + 41.94%+ 10.68% N.A.N.A. N.A.N.A. N.A.N.A.

ETM Rank

Unranked

Invest

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Tata Digital India Fund

  • Tata Digital India Fund
  • ICICI Prudential Technology Fund
  • Aditya Birla Sun Life Digital India Fund
  • Franklin India Technology Fund
  • SBI Technology Opportunities Fund
  • HDFC Technology Fund
  • Quant Teck Fund

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Technology Mutual Funds: Best IT sector equity funds in India (11)You would have got

Total investment Invested 6 Lakh

Profit 3.33 Lakh

Current value Current value 9.33 Lakh

Technology Mutual Funds: Best IT sector equity funds in India (12)

This fund has generated an XIRR of 27.6% over the past 5 Years

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Genius High Growth Portfolio strategies would have potentially delivered up to 22.33% returns! Know More

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  • How to invest in Sectoral-Technology Funds?
  • Frequently Asked Questions

How to invest in Sectoral-Technology Funds?

It is quite easy to invest in Sectoral-Technology mutual funds on ET Money. Here are the steps that you have to follow.

  • Register online on ET Money app or website
  • Head to Mutual Funds sections and choose the Sectoral-Technology fund you want to invest in.
  • Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
  • Provide your KYC details (Pan number, Bank details) and complete your investment.

Frequently Asked Questions

Which are the best Sectoral-Technology Mutual Funds to invest in 2024?

These are top 5 Sectoral-Technology funds you can invest in 2024

Fund NameFund CategoryETM RankConsistency5 Year Return (Annualized)
SBI Technology Opportunities FundEquity# 1 of 524.6 % p.a.
ICICI Prudential Technology FundEquity# 2 of 526.12 % p.a.
Tata Digital India FundEquity# 3 of 525.92 % p.a.
Aditya Birla Sun Life Digital India FundEquity# 4 of 526.3 % p.a.
Franklin India Technology FundEquity# 5 of 523.71 % p.a.

Since Sectoral-Technology Mutual Funds are equity funds i.e. they invest in stocks of companies, you need to stay invested for at least 5 years.

Sectoral Funds have to invest at least 80% of their assets in stocks of companies operating in a particular sector. For instance, a Banking Sectoral Fund will invest only in stocks of banks, NBFCs, and other financial institutions. Due to this narrow sector focus, these funds lack diversification and therefore carry high risk.

Sectoral-Technology Mutual Funds invest in equities, so in a short term, they can be volatile. However, over a long-term, the risk comes down substantially.

Sectoral-Technology Funds have on an average delivered 25.33% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 20.14% and 19.85% p.a.

Sectoral Funds are some of the riskiest Mutual Funds. Since these funds invest only in one sector, there is no sector diversification, and that is the main reason for their high risk. If the sector goes down, all the stocks in the portfolio will go down with nothing to cushion this fall. These funds are suitable only for experienced investors, and even then, not more than 10% of the portfolio should be in these funds.

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Technology Mutual Funds: Best IT sector equity funds in India (2024)

FAQs

Technology Mutual Funds: Best IT sector equity funds in India? ›

Most investment advisors argue that the information technology (IT) sector is not a good 'buy' since the projected growth is muted in Calendar Year 2024.

Which mutual fund is best for IT sector? ›

Best IT Sector Mutual Funds to Invest in 2024
Fund Name1Y CAGR 3Y CAGR 5Y CAGR Till Date CAGRTill Date CAGR
Aditya Birla Sun Life Digital India Fund (G)15.2%11.8%
ICICI Prudential Technology Fund (G)15.1%12.4%
Tata Digital India Fund (G)15.9%18.5%
SBI Technology Opportunities Fund (G)15.6%19.5%
1 more row

What is the best technology mutual fund? ›

Here are the best Technology funds
  • Technology Select Sector SPDR® ETF.
  • Invesco PHLX Semiconductor ETF.
  • Invesco S&P 500® Equal Weight Tech ETF.
  • Vanguard Information Technology ETF.
  • SPDR® S&P Software & Services ETF.
  • First Trust NASDAQ-100-Tech Sector ETF.
  • Fidelity MSCI Information Tech ETF.

Which is best IT Index fund in India? ›

Asset Allocation
Scheme NameNAV(Rs./Unit)1Y
ICICI Prudential Nifty IT Index Fund - Growth11.2925.92
Tata Nifty India Digital ETF FoF Regular - Growth12.2649.99
HDFC NIFTY IT ETF- Growth34.1326.92
DSP Nifty IT ETF - Growth33.80-
1 more row

Is it good to invest in technology mutual funds? ›

Most investment advisors argue that the information technology (IT) sector is not a good 'buy' since the projected growth is muted in Calendar Year 2024.

Which is the No 1 Technology fund in the India? ›

Technology Funds in India:
FundsAUM Rs CrReturns %
Tata Digital India Fund-Reg(G)9702.124.24
ICICI Pru Technology Fund(G)12248.824.6
SBI Technology Opp Fund-Reg(G)3758.423.72
HDFC Technology Fund-Reg(G)927.2
4 more rows
Feb 23, 2024

What are the top 3 IT sector companies? ›

The following is a comprehensive overview of India's best IT stocks of 2024 as per analyst ratings:
  • 1) Tata Consultancy Services. Headquartered in Mumbai, Tata Consultancy Services Limited (TCS) is one of India's renowned IT service providers. ...
  • 2) KPIT Technologies. ...
  • 3) HCL Technologies. ...
  • 4) Infosys. ...
  • 5) Persistent Systems.
7 days ago

Is technology fund good for long term investment? ›

The tech sector funds saw returns of 5.06 percent in the year ending August 21, 2023, in contrast to the 18.12 percent provided by multi-cap funds, according to Value Research. However, some experts believe that technology sector has the ability to demonstrate potential for growth and innovation in the long run.

Which digital India fund is best? ›

Asset Allocation
Scheme NameNAV(Rs./Unit)AUM(Rs. Cr)
Tata Digital India Fund Direct-Growth47.099,710.96
Tata Nifty India Digital ETF FoF Direct - Growth12.3348.30
ICICI Prudential Nifty IT Index Fund Direct - Growth11.34355.29
Axis Nifty IT Index Fund Direct - Growth11.23107.06
1 more row

Which fund has the highest return in India? ›

Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.

Which is the safest sector to invest in India? ›

10 Safest Investment Options in India
  • Fixed Deposit (FD) ...
  • Life Insurance. ...
  • Public Provident Fund (PPF) ...
  • National Pension Scheme (NPS) ...
  • Gold. ...
  • Savings Bonds. ...
  • Recurring Deposits. ...
  • National Savings Certificate.
Feb 19, 2024

Is there any IT sector ETF in India? ›

Index Funds/ETFs : The fund has 99.9% investment in domestic equities of which 80.38% is in Large Cap stocks, 10.08% is in Mid Cap stocks, 4.1% in Small Cap stocks.

Should I invest in IT sector? ›

High-Growth Sector: The top IT sector stocks' industry's growth rate is expected to continue to rise. This presents an opportunity for investors to invest in a sector with high growth potential. Resilient to Economic Downturns: The sector is relatively more resilient to economic downturns than other sectors.

Why technology funds are falling? ›

The year 2022 saw major challenges for tech companies due to Russia's invasion of Ukraine, and rising inflation. All this has put pressure on the IT sector domestically and the share price of IT companies saw a major downturn in the last few quarters.

Why invest in technology funds? ›

Technology mutual funds are a subset of sectoral funds that primarily invest in companies operating in the technology sector that have high growth potential. These funds offer investors a chance to participate in the growth and innovation brought about by technology companies.

Which share is best in IT sector? ›

Let's take a look at the top 10 IT stocks in India to get a better idea of ​​the industry.
  • Tata Consulting Services (TCS) ...
  • Infosys. ...
  • Wipro. ...
  • HCL Technical Infrastructure. ...
  • Tech Mahindra. ...
  • Mindtree. ...
  • Larsen & Toubro Infotech (LTI) ...
  • Coforge.
Mar 27, 2024

Which company is best in IT sector? ›

Top 10 Best IT Stocks in India: List of Best IT Companies
  1. Tata Consultancy Services (TCS) Overview: TCS is India's largest IT company, offering a range of IT services and consulting globally. ...
  2. Infosys. ...
  3. HCL Tech. ...
  4. Wipro. ...
  5. LTIMindtree. ...
  6. Tech Mahindra. ...
  7. Mphasis. ...
  8. Persistent.
Jan 14, 2024

What are the top 5 performing mutual funds? ›

Best-performing U.S. equity mutual funds
TickerName5-year return (%)
STSEXBlackRock Exchange BlackRock16.27%
USBOXPear Tree Quality Ordinary16.13%
FGLGXFidelity Series Large Cap Stock16.08%
PRCOXT. Rowe Price U.S. Equity Research16%
3 more rows
Mar 29, 2024

Which type of mutual fund gives highest return? ›

Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.

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