India’s technology sector is one of the highest-paying industries and is growing rapidly. In addition, the Indian government has been heavily investing in the technology sector to digitize the country, with both established and emerging IT companies benefiting from this initiative. Thus, you might think about expanding your portfolios with the Best technology mutual funds in India, if you wish to participate in these rapidly expanding businesses.
5 Best Technology Mutual Funds in India
The 5 Best technology mutual funds in India for investments are as follows:
1. SBI Technology Opportunities Fund- Direct Fund Growth
Artificial Intelligence (AI), robots, blockchain, and data analytics are the main areas of concentration for the SBI Technology Opportunities Fund. This mutual fund makes investments in this kind of technology development, which benefits businesses worldwide by improving their infrastructure, business procedures, goods, and services.
This is one of the Best technology mutual funds in India, which is managed by SBI Funds Management Inc., which seeks to increase the value of the cash it has invested by making investments in both startups and established IT companies at various phases of development. Over 20% of annualized returns have been generated since its launch.
It has also been effective in doubling the invested capital every three years. Furthermore, as of September 30, 2022, this mutual fund had roughly Rs. 2,500 crore in assets under management (AUM).
SBI Technology Opportunities Fund is a medium-sized fund in its category with a 0.92% cost ratio. It is renowned in the industry for reliably producing returns.
The top five holdings of this mutual fund are Tata Consultancy Services Ltd., Bharti Airtel Ltd., Infosys Ltd., Microsoft Corporation (USA), and Netflix Inc. (USA). The growth of this mutual fund has been 179.50% during the last five years.
2. ICICI Prudential Technology Fund
This diversified equities fund was established on March 3, 2000, and its long-term goals are capital appreciation and income generation. By holding stock and equity-related securities of foreign technology and technology-dependent enterprises, this mutual fund seeks to achieve this goal.
The majority of the assets under management (AUM) of the ICICI Prudential Technology Fund are allocated to stocks that are included in the Benchmark Index. However, this technology mutual funds may also buy equities from other companies that are involved in the IT services industry, based on its strategy.
At the moment, this is among the Best technology mutual funds in India, which has an expense ratio of 0.79% and an approximate AUM of Rs. 8,693 crore. In addition, the fund’s average annual returns are 22.28%, and during the previous five years, it has increased by 209.38%.
Its main holdings are Infosys Ltd., Tata Consultancy Services Ltd., HCL Technologies Ltd., Wipro Ltd., and Tech Mahindra Ltd.
3. Franklin India Technology Fund
Franklin Templeton Mutual Fund House offers management services for the Franklin India Technology Fund. It buys shares of high-quality, quickly growing IT companies in order to attain above-average capital appreciation. It is also well-known in its industry for giving investors steady profits and employing a bottom-up approach to stock pricing.
With Rs. 686.39 crore in assets under administration at the moment, this mutual fund has seen a 19.25% compound annual growth over the last three years. Its average yearly returns are 17.23%, and its expense ratio is 1.41%. Furthermore, this firm’s 3-year returns have increased by 69.56%.
4. Tata Digital India Fund
If you are good at long-term capital appreciation and investing in IT companies that are tied to equity, the Tata Digital India Fund is a good fit for you. The goal of this mutual fund’s long-term capital growth strategy is to invest at least 80% of its assets in equity equities of IT firms that provide hardware, software, and ITeS.
Since its launch on December 4, 2015, this has been among the Best technology mutual funds in India which have amassed assets under management totaling Rs. 5,981 crore. Its expense ratio is 0.34%, and its three-year compound annual growth rate is 26.64%. This mutual fund has an average yearly return of 19.75%. Its three-year returns have also climbed by a whopping 103.12%.
5. Aditya Birla Sun Life Digital India Fund
Birla Aditya A plan for investing in open-ended stock is the Sun Life Digital India Fund. It primarily makes investments in media, entertainment, technology, and other related ancillary industries. The multi-sector investment plan of this mutual fund aims for long-term capital growth. Its portfolio is made up entirely of equity investments in businesses that rely on or are aided by technology.
It was founded on January 15, 2000, and as of right now, it is managing assets valued at Rs. 3,134 crore. Its expense ratio is 0.85% and its compound annual growth rate is 27.32%. Additionally, this mutual fund has produced average annual returns of 21.51%. As of right now, its three-year return is 106.41%. Infosys Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd., HCL Technologies Ltd., and MindTree Ltd. are the top five holdings of this mutual fund.
You may choose an investment that best fits your needs now that you are aware of the top technology mutual funds. Do bear in mind, nevertheless, that technology stocks are not always reliable and stable. This is due to the fact that they may be more volatile than other mutual fund kinds since they invest in a range of IT companies.
Moreover, these technology mutual funds are frequently utilized as hedge funds or long-term investments. Therefore, novice investors with a poor tolerance for risk should not consider it.