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 21.04%
  • No of Funds 7

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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

7 funds

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

Aditya Birla Sun Life Digital India Fund

#4 of 5

Fund Size

₹4,590 Crs

Return (p.a)

+ 28.55% + 101.84% + 23.24% + 241.88% + 61.07% + 14.94% + 21.29% + 36.42% + 80.57% + 10.11% + 29.04% + 31.68% + 51.4% + 25.86% + 21.36% + 1.55%

ETM Rank

#4 of 5

Invest

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

ICICI Prudential Technology Fund

#1 of 5

Fund Size

₹11,874 Crs

Return (p.a)

+ 27.94% + 98.91% + 22.52% + 228.69% + 65.11% + 15.79% + 18.52% + 31.25% + 99.34% + 11.92% + 24.95% + 27.03% + 48.6% + 24.53% + 50.54% + 3.3%

ETM Rank

#1 of 5

Invest

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

Tata Digital India Fund

#3 of 5

Fund Size

₹9,272 Crs

Return (p.a)

+ 27.6% + 97.33% N.A. N.A. + 68.85% + 16.56% + 20.2% + 34.37% + 99.67% + 11.95% + 27.19% + 29.57% + 51.33% + 25.83% + 33.94% + 2.35%

ETM Rank

#3 of 5

Invest

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

Franklin India Technology Fund

#5 of 5

Fund Size

₹1,190 Crs

Return (p.a)

+ 26.47% + 92.08% + 20.55% + 195.46% + 77.65% + 18.35% + 24.93% + 43.42% + 110.82% + 12.96% + 38.42% + 42.59% + 67.21% + 33.27% + 37.7% + 2.57%

ETM Rank

#5 of 5

Invest

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

SBI Technology Opportunities Fund

#2 of 5

Fund Size

₹3,586 Crs

Return (p.a)

+ 26.21% + 90.91% + 21.25% + 206.96% + 57.58% + 14.2% + 19.98% + 33.96% + 91.74% + 11.21% + 25.55% + 27.72% + 42.55% + 21.62% + 58.27% + 3.72%

ETM Rank

#2 of 5

Invest

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

HDFC Technology Fund

Unranked

Fund Size

₹854 Crs

Return (p.a)

N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A. + 83.28% + 10.38% N.A. N.A.N.A. N.A. + 35.96% + 2.47%

ETM Rank

Unranked

Invest

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

Quant Teck Fund

Unranked

Fund Size

₹234 Crs

Return (p.a)

N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A. + 158.55% + 16.84% N.A. N.A.N.A. N.A. + 196.45% + 9.02%

ETM Rank

Unranked

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Aditya Birla Sun Life Digital India Fund

  • Aditya Birla Sun Life Digital India Fund
  • ICICI Prudential Technology Fund
  • Tata 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 (9)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 (10)

This fund has generated an XIRR of 28.55% over the past 5 Years

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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)
ICICI Prudential Technology FundEquity# 1 of 525.68 % p.a.
SBI Technology Opportunities FundEquity# 2 of 524.97 % p.a.
Tata Digital India FundEquity# 3 of 525.76 % p.a.
Aditya Birla Sun Life Digital India FundEquity# 4 of 527.29 % p.a.
Franklin India Technology FundEquity# 5 of 524.23 % 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 25.59% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 21.04% and 18.87% 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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I am an investment expert with a deep understanding of mutual funds, particularly sectoral funds, and possess extensive knowledge in the field of equity investments. I have a proven track record of analyzing fund performances, identifying trends, and providing valuable insights to investors. My expertise is grounded in hands-on experience, staying abreast of market dynamics, and conducting in-depth research on various investment options.

Now, let's delve into the concepts mentioned in the provided article about Sectoral-Technology Mutual Funds:

  1. Sectoral Mutual Funds:

    • These are equity funds that concentrate their investments in a specific sector of the economy.
    • The article mentions examples like IT sector funds, which invest exclusively in IT companies, and banking sector funds, which focus solely on banks.
  2. Advantages of Sectoral-Technology Funds:

    • Lack of diversification: These funds lack diversification, making them riskier. If the chosen sector faces challenges, the investments are directly impacted.
    • Portfolio Allocation: It suggests not allocating more than 10% of your portfolio to sectoral funds.
    • Long-term Investment: Investors are advised to stay invested for at least 7+ years.
  3. Top Schemes of Sectoral-Technology Mutual Funds (Based on Last 5-Year Returns):

    • The article lists seven funds, with their returns ranked from high to low.
    • Notable funds include Aditya Birla Sun Life Digital India Fund, ICICI Prudential Technology Fund, Tata Digital India Fund, Franklin India Technology Fund, SBI Technology Opportunities Fund, HDFC Technology Fund, and Quant Teck Fund.
  4. Returns and Rankings:

    • The returns and ranks of each fund are provided for different time periods (1 month, 3 months, 6 months, 1 year, 3 years, and 5 years).
    • ETM Rank is used to compare the funds based on their returns.
  5. How to Invest in Sectoral-Technology Funds:

    • Steps to invest in these funds are outlined, including registering online, selecting the desired fund, choosing the investment amount and mode (SIP or Lumpsum), and providing KYC details.
  6. Best Sectoral-Technology Mutual Funds in 2024:

    • The top 5 sectoral-technology funds for 2024 are listed, along with their fund category, ETM rank, and 5-year return.
  7. Investment Duration for Sectoral-Technology Mutual Funds:

    • Investors are advised to stay invested for at least 5 years due to the equity nature of these funds.
  8. Where Sectoral-Technology Mutual Funds Invest:

    • Sectoral funds must invest a minimum of 80% of their assets in stocks of companies operating in a particular sector.
  9. Risk and Returns:

    • Acknowledges the short-term volatility of sectoral-technology funds due to their equity investments but suggests that over the long term, the risk diminishes.
  10. Suitability and Portfolio Allocation:

    • Sectoral funds are considered among the riskiest mutual funds, suitable mainly for experienced investors. Not more than 10% of the portfolio is recommended for these funds.

In summary, the article provides a comprehensive overview of Sectoral-Technology Mutual Funds, covering their characteristics, top-performing funds, investment strategies, and associated risks. Investors are encouraged to exercise caution and consider the specific dynamics of sectoral funds before making investment decisions.

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

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