Updated on August 26, 2021 , 73274 views

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.

Technology

Indias 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 countrys 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. India remained the world’s top sourcing destination in 2016-17 with a share of 55 per cent. Some of India’s leading IT firms are Infosys, TCS, Wipro, Tech Mahindra, etc., that have immensely created a mark in this 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.

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.

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.

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Top 5 Best Technology (IT) Sector Funds in India FY 21 - 22

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2020 (%)
Franklin India Technology Fund Growth ₹335.722
↓ -0.91
₹63719.124.162.827.824.4
ICICI Prudential Technology Fund Growth ₹150.11
↑ 0.64
₹4,08427.747104.135.830.9
SBI Technology Opportunities Fund Growth ₹145.935
↑ 0.06
₹1,1502644.791.331.326.1
Aditya Birla Sun Life Digital India Fund Growth ₹128.51
↑ 0.46
₹1,9502241.289.933.329.9
TATA Digital India Fund Growth ₹35.1234
↑ 0.22
₹2,17925.745.9101.131.729.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 26 Aug 21

1. Franklin India Technology Fund

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 CAGR/Annualized return of 20.1% since its launch.  Ranked 41 in Sectoral category. .

Below is the key information for Franklin India Technology Fund

Franklin India Technology Fund
Growth
Launch Date 22 Aug 98
NAV (26 Aug 21) ₹335.722 ↓ -0.91   (-0.27 %)
Net Assets (Cr) ₹637 on 31 Jul 21
Category Equity - Sectoral
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk High
Expense Ratio 2.46
Sharpe Ratio 4.32
Information Ratio 0.3
Alpha Ratio 18.83
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.

DateValue
31 Jul 16₹10,000
31 Jul 17₹10,449
31 Jul 18₹13,635
31 Jul 19₹13,703
31 Jul 20₹17,553
31 Jul 21₹27,434

Franklin India Technology Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833

Invest Now

Returns for Franklin India Technology Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Aug 21

DurationReturns
1 Month 7%
3 Month 19.1%
6 Month 24.1%
1 Year 62.8%
3 Year 27.8%
5 Year 24.4%
10 Year
15 Year
Since launch 20.1%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for Franklin India Technology Fund
NameSinceTenure
Anand Radhakrishnan3 Mar 0714.42 Yr.
Varun Sharma30 Nov 155.67 Yr.
Mayank Bukrediwala24 Aug 200.94 Yr.

Data below for Franklin India Technology Fund as on 31 Jul 21

Equity Sector Allocation
SectorValue
Technology71.24%
Communication Services14.8%
Consumer Cyclical4.16%
Industrials2.84%
Financial Services0.68%
Real Estate0.19%
Health Care0.09%
Consumer Defensive0.03%
Asset Allocation
Asset ClassValue
Cash5.65%
Equity94.09%
Other0.26%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY
25%₹149 Cr945,647
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 04 | TCS
10%₹59 Cr176,000
↑ 1,000
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 30 Jun 14 | HCLTECH
9%₹56 Cr570,000
Franklin Technology I Acc USD
Investment Fund | -
7%₹44 Cr91,868
Info Edge (India) Ltd (Communication Services)
Equity, Since 31 Jan 17 | NAUKRI
6%₹36 Cr73,229
↑ 13,974
Tech Mahindra Ltd (Technology)
Equity, Since 28 Feb 14 | 532755
6%₹35 Cr320,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 18 | BHARTIARTL
5%₹32 Cr600,000
Cyient Ltd (Industrials)
Equity, Since 31 Dec 06 | CYIENT
3%₹17 Cr200,000
NVIDIA Corp (Technology)
Equity, Since 30 Apr 19 | NVDA
3%₹17 Cr2,800
MakeMyTrip Ltd (Consumer Cyclical)
Equity, Since 31 Mar 20 | MMYT
2%₹13 Cr60,135

2. ICICI Prudential Technology Fund

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 CAGR/Annualized return of 13.4% since its launch.  Ranked 37 in Sectoral category. .

Below is the key information for ICICI Prudential Technology Fund

ICICI Prudential Technology Fund
Growth
Launch Date 3 Mar 00
NAV (27 Aug 21) ₹150.11 ↑ 0.64   (0.43 %)
Net Assets (Cr) ₹4,084 on 31 Jul 21
Category Equity - Sectoral
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk High
Expense Ratio 2.6
Sharpe Ratio 5.02
Information Ratio 0.41
Alpha Ratio 35.84
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.

DateValue
31 Jul 16₹10,000
31 Jul 17₹10,232
31 Jul 18₹14,386
31 Jul 19₹14,669
31 Jul 20₹17,078
31 Jul 21₹34,949

ICICI Prudential Technology Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹642,208.
Net Profit of ₹342,208

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Returns for ICICI Prudential Technology Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Aug 21

DurationReturns
1 Month 9.6%
3 Month 27.7%
6 Month 47%
1 Year 104.1%
3 Year 35.8%
5 Year 30.9%
10 Year
15 Year
Since launch 13.4%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for ICICI Prudential Technology Fund
NameSinceTenure
Sankaran Naren14 Jul 174.05 Yr.
Priyanka Khandelwal8 Jul 201.06 Yr.
Vaibhav Dusad2 May 201.25 Yr.

Data below for ICICI Prudential Technology Fund as on 31 Jul 21

Equity Sector Allocation
SectorValue
Technology78.14%
Communication Services9.19%
Industrials7.68%
Consumer Defensive1.35%
Asset Allocation
Asset ClassValue
Cash3.64%
Equity96.36%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY
24%₹849 Cr5,370,218
↑ 794,019
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 30 Sep 20 | HCLTECH
8%₹276 Cr2,805,807
↑ 250,000
Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | 532755
8%₹273 Cr2,496,107
↑ 635,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 19 | TCS
7%₹243 Cr725,185
↑ 45,000
Persistent Systems Ltd (Technology)
Equity, Since 31 May 20 | PERSISTENT
4%₹146 Cr498,305
↑ 40,234
Indian Railway Catering And Tourism Corp Ltd (Industrials)
Equity, Since 31 Dec 20 | 542830
3%₹104 Cr513,609
↑ 150,000
Coforge Ltd Shs Dematerialised (Technology)
Equity, Since 31 Jul 20 | 532541
3%₹102 Cr245,969
↓ -8,000
Wipro Ltd (Technology)
Equity, Since 30 Sep 19 | 507685
3%₹99 Cr1,821,450
↑ 130,000
MindTree Ltd (Technology)
Equity, Since 30 Jun 20 | 532819
3%₹96 Cr367,684
↑ 49,000
eClerx Services Ltd (Technology)
Equity, Since 31 Aug 20 | 532927
3%₹95 Cr489,394
↑ 123,541

3. SBI Technology Opportunities Fund

(Erstwhile SBI IT Fund)

To provide the investors maximum growth opportunity through equity investments 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 CAGR/Annualized return of 23.9% since its launch.  Ranked 42 in Sectoral category. .

Below is the key information for SBI Technology Opportunities Fund

SBI Technology Opportunities Fund
Growth
Launch Date 9 Jan 13
NAV (27 Aug 21) ₹145.935 ↑ 0.06   (0.04 %)
Net Assets (Cr) ₹1,150 on 31 Jul 21
Category Equity - Sectoral
AMC SBI Funds Management Private Limited
Rating
Risk High
Expense Ratio 2.62
Sharpe Ratio 4.63
Information Ratio 0.97
Alpha Ratio 24.74
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.

DateValue
31 Jul 16₹10,000
31 Jul 17₹9,725
31 Jul 18₹13,440
31 Jul 19₹13,959
31 Jul 20₹16,041
31 Jul 21₹29,260

SBI Technology Opportunities Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹584,107.
Net Profit of ₹284,107

Invest Now

Returns for SBI Technology Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Aug 21

DurationReturns
1 Month 8.4%
3 Month 26%
6 Month 44.7%
1 Year 91.3%
3 Year 31.3%
5 Year 26.1%
10 Year
15 Year
Since launch 23.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for SBI Technology Opportunities Fund
NameSinceTenure
Anup Upadhyay1 Jun 1110.17 Yr.

Data below for SBI Technology Opportunities Fund as on 31 Jul 21

Equity Sector Allocation
SectorValue
Technology74.86%
Communication Services13.53%
Industrials3.4%
Financial Services1.84%
Asset Allocation
Asset ClassValue
Cash6.37%
Equity93.63%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY
24%₹218 Cr1,376,700
↑ 156,500
Alphabet Inc Class A (Communication Services)
Equity, Since 30 Sep 18 | GOOGL
9%₹80 Cr4,425
↑ 1,370
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 31 Mar 06 | HCLTECH
8%₹74 Cr750,374
↑ 103,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 06 | TCS
7%₹64 Cr191,411
Tech Mahindra Ltd (Technology)
Equity, Since 31 Aug 15 | 532755
5%₹46 Cr417,935
↑ 65,000
Persistent Systems Ltd (Technology)
Equity, Since 31 Aug 20 | PERSISTENT
5%₹42 Cr144,100
Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 31 May 20 | 540005
5%₹42 Cr103,000
↑ 84,500
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL
4%₹35 Cr673,130
Firstsource Solutions Ltd (Technology)
Equity, Since 31 Oct 20 | 532809
4%₹35 Cr1,857,000
↓ -1,098,000
Cyient Ltd (Industrials)
Equity, Since 30 Apr 20 | CYIENT
3%₹31 Cr362,150

4. Aditya Birla Sun Life Digital India Fund

(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 CAGR/Annualized return of 12.5% since its launch.  Ranked 33 in Sectoral category. .

Below is the key information for Aditya Birla Sun Life Digital India Fund

Aditya Birla Sun Life Digital India Fund
Growth
Launch Date 15 Jan 00
NAV (27 Aug 21) ₹128.51 ↑ 0.46   (0.36 %)
Net Assets (Cr) ₹1,950 on 31 Jul 21
Category Equity - Sectoral
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk High
Expense Ratio 2.6
Sharpe Ratio 5.87
Information Ratio 1.06
Alpha Ratio 35.08
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹10,543
31 Jul 18₹14,540
31 Jul 19₹14,737
31 Jul 20₹17,872
31 Jul 21₹33,882

Aditya Birla Sun Life Digital India Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹627,226.
Net Profit of ₹327,226

Invest Now

Returns for Aditya Birla Sun Life Digital India Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Aug 21

DurationReturns
1 Month 7.7%
3 Month 22%
6 Month 41.2%
1 Year 89.9%
3 Year 33.3%
5 Year 29.9%
10 Year
15 Year
Since launch 12.5%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for Aditya Birla Sun Life Digital India Fund
NameSinceTenure
Kunal Sangoi15 Jan 147.55 Yr.

Data below for Aditya Birla Sun Life Digital India Fund as on 31 Jul 21

Equity Sector Allocation
SectorValue
Technology73.1%
Communication Services14.43%
Industrials7.92%
Asset Allocation
Asset ClassValue
Cash4.55%
Equity95.45%
Other0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 30 Apr 05 | INFY
21%₹353 Cr2,235,259
↑ 125,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 05 | TCS
10%₹167 Cr499,487
↑ 95,000
Tech Mahindra Ltd (Technology)
Equity, Since 31 May 13 | 532755
9%₹156 Cr1,419,943
↑ 205,000
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 31 Dec 10 | HCLTECH
7%₹113 Cr1,143,931
↑ 275,000
Cyient Ltd (Industrials)
Equity, Since 31 May 14 | CYIENT
5%₹76 Cr882,609
Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 13 | PERSISTENT
4%₹68 Cr231,326
↑ 25,000
Just Dial Ltd (Communication Services)
Equity, Since 30 Sep 19 | 535648
4%₹63 Cr658,953
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 19 | BHARTIARTL
3%₹56 Cr1,066,937
Firstsource Solutions Ltd (Technology)
Equity, Since 31 Aug 20 | 532809
3%₹49 Cr2,605,109
↓ -448,543
Wipro Ltd (Technology)
Equity, Since 31 Jan 21 | 507685
3%₹43 Cr789,307
↓ -100,000

5. TATA Digital India Fund

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 CAGR/Annualized return of 24.8% since its launch. .

Below is the key information for TATA Digital India Fund

TATA Digital India Fund
Growth
Launch Date 28 Dec 15
NAV (27 Aug 21) ₹35.1234 ↑ 0.22   (0.63 %)
Net Assets (Cr) ₹2,179 on 31 Jul 21
Category Equity - Sectoral
AMC Tata Asset Management Limited
Rating Not Rated
Risk High
Expense Ratio 1.73
Sharpe Ratio 3.85
Information Ratio -0.15
Alpha Ratio 14.09
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-3 Months (0.25%),3 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹9,985
31 Jul 18₹14,946
31 Jul 19₹15,017
31 Jul 20₹17,417
31 Jul 21₹32,870

TATA Digital India Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹627,226.
Net Profit of ₹327,226

Invest Now

Returns for TATA Digital India Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Aug 21

DurationReturns
1 Month 10.2%
3 Month 25.7%
6 Month 45.9%
1 Year 101.1%
3 Year 31.7%
5 Year 29.8%
10 Year
15 Year
Since launch 24.8%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for TATA Digital India Fund
NameSinceTenure
Rahul Singh20 Apr 201.28 Yr.
Meeta Shetty20 Apr 201.28 Yr.
Venkat Samala26 Nov 200.68 Yr.

Data below for TATA Digital India Fund as on 31 Jul 21

Equity Sector Allocation
SectorValue
Technology83.89%
Communication Services6.84%
Industrials6.61%
Consumer Cyclical0.71%
Asset Allocation
Asset ClassValue
Cash1.94%
Equity98.06%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 31 Jan 16 | INFY
20%₹353 Cr2,230,000
↑ 200,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 16 | TCS
15%₹272 Cr813,126
↑ 200,000
Tech Mahindra Ltd (Technology)
Equity, Since 30 Apr 16 | 532755
8%₹140 Cr1,275,000
↑ 440,000
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 31 Jan 16 | HCLTECH
7%₹130 Cr1,323,741
↑ 124,741
Persistent Systems Ltd (Technology)
Equity, Since 31 Jan 16 | PERSISTENT
6%₹110 Cr375,363
Wipro Ltd (Technology)
Equity, Since 31 Jul 18 | 507685
4%₹74 Cr1,350,000
Cyient Ltd (Industrials)
Equity, Since 28 Feb 21 | CYIENT
4%₹67 Cr783,339
↑ 50,000
Birlasoft Ltd (Technology)
Equity, Since 31 Jul 20 | 532400
3%₹61 Cr1,531,048
↑ 26,048
Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 28 Feb 21 | 540005
3%₹56 Cr138,331
↑ 25,600
Info Edge (India) Ltd (Communication Services)
Equity, Since 31 Aug 20 | NAUKRI
3%₹53 Cr107,330

Who Should Invest in Technology and 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.

How to Invest in Best Technology Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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