+91-22-489139095 Best Performing Technology (IT) Sector Funds 2026
India’s technology industry isn’t just evolving—it’s surging. From powering government initiatives like Digital India to becoming a hub for AI, semiconductors, and enterprise cloud services, the tech sector is now a central pillar of India’s high-growth narrative.
Technology Sector Mutual Funds offer a streamlined way for investors to benefit from this expansion. Historically, these funds have delivered 15–20% annualised returns over five years, though with elevated Volatility.
In 2025, the growth story gets more compelling:
- India’s tech exports are set to surpass US$210 billion, with sector contributions nearing 10% of GDP.
- Government pushes around data-center capacities, semiconductors, and broadband are creating fresh tailwinds.
- But, structural shifts—AI rewiring hiring, global macroeconomic pressures—create critical nuances that call for disciplined awareness.
This article walks you through:
- Why India’s tech sector stands out in 2026
- The top Technology Sector Mutual Funds
- Who should consider these funds
- A step-by-step investment guide
Let’s dive in.
Technology & IT Sector in India – What Makes It Special
Exports & Market Scale: Indian tech exports are estimated at ₹17.96 lakh crore (~US$210 billion) in FY25, with IT’s GDP contribution expected to hit 10% by 2026.
Software Products: The India software product domain is forecast to reach ₹8.68 lakh crore (US$100 billion) by 2025
Services Sector Growth: With a 13.4% CAGR from 2024 to 2030, India’s IT services market is projected to skyrocket from around US$69.2 billion in 2023 to US$166.4 billion by 2030.
Digital Infrastructure Expansion: Government programs like National Broadband Mission 2.0 and data‐centre incentives are generating robust infrastructure demand—not just gadgets but foundational growth.
Semiconductors & Electronics: Initiatives like the India Semiconductor Mission and state-level electronics manufacturing policies are aiming for a $50 billion electronics output and 1 million jobs in the coming years.
AI-Driven Shifts: Although some IT firms (e.g., TCS) are undergoing layoffs amid AI transitions, demand for AI and cybersecurity roles remains strong.
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Fund Selection Methodology used to find 9 funds
Top 5 Best Technology (IT) Sector Funds in India FY 26 - 27
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Franklin India Technology Fund Growth ₹453.48
↑ 5.05 ₹1,645 1 -14.8 -13.7 11.8 8.2 -1.5 ICICI Prudential Technology Fund Growth ₹169.7
↑ 2.09 ₹13,358 -2.2 -18.2 -17.7 6.7 5.5 -1.9 SBI Technology Opportunities Fund Growth ₹186.675
↑ 2.10 ₹4,228 -1 -17.4 -15.8 8.1 7.9 1.5 TATA Digital India Fund Growth ₹39.4496
↑ 0.58 ₹9,660 -1.1 -18.2 -18.2 5.8 5.4 -9.7 Aditya Birla Sun Life Digital India Fund Growth ₹146.84
↑ 1.75 ₹3,817 -1.1 -17.1 -17.5 4.3 4.8 -5.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 9 Jul 26 Research Highlights & Commentary of 5 Funds showcased
Commentary Franklin India Technology Fund ICICI Prudential Technology Fund SBI Technology Opportunities Fund TATA Digital India Fund Aditya Birla Sun Life Digital India Fund Point 1 Bottom quartile AUM (₹1,645 Cr). Highest AUM (₹13,358 Cr). Lower mid AUM (₹4,228 Cr). Upper mid AUM (₹9,660 Cr). Bottom quartile AUM (₹3,817 Cr). Point 2 Oldest track record among peers (27 yrs). Established history (26+ yrs). Established history (13+ yrs). Established history (10+ yrs). Established history (26+ yrs). Point 3 Rating: 1★ (lower mid). Top rated. Rating: 1★ (bottom quartile). Not Rated. Rating: 2★ (upper mid). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Point 5 5Y return: 8.21% (top quartile). 5Y return: 5.48% (lower mid). 5Y return: 7.93% (upper mid). 5Y return: 5.43% (bottom quartile). 5Y return: 4.83% (bottom quartile). Point 6 3Y return: 11.80% (top quartile). 3Y return: 6.68% (lower mid). 3Y return: 8.13% (upper mid). 3Y return: 5.80% (bottom quartile). 3Y return: 4.34% (bottom quartile). Point 7 1Y return: -13.74% (top quartile). 1Y return: -17.73% (bottom quartile). 1Y return: -15.75% (upper mid). 1Y return: -18.18% (bottom quartile). 1Y return: -17.47% (lower mid). Point 8 Alpha: 0.82 (bottom quartile). Alpha: 1.57 (upper mid). Alpha: 1.39 (lower mid). Alpha: -1.17 (bottom quartile). Alpha: 2.58 (top quartile). Point 9 Sharpe: -0.83 (upper mid). Sharpe: -0.84 (bottom quartile). Sharpe: -0.83 (lower mid). Sharpe: -1.01 (bottom quartile). Sharpe: -0.79 (top quartile). Point 10 Information ratio: 0.81 (top quartile). Information ratio: 0.49 (lower mid). Information ratio: 0.49 (bottom quartile). Information ratio: 0.69 (upper mid). Information ratio: -0.04 (bottom quartile). Franklin India Technology Fund
ICICI Prudential Technology Fund
SBI Technology Opportunities Fund
TATA Digital India Fund
Aditya Birla Sun Life Digital India Fund
All the funds mentioned above are ideal, we are giving you detailed analysis of 3 funds.
To provide long-term capital appreciation by predominantly investing in equity and equity related securities of technology and technology related companies. Research Highlights for Franklin India Technology Fund Below is the key information for Franklin India Technology Fund 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. Research Highlights for ICICI Prudential Technology Fund Below is the key information for ICICI Prudential Technology Fund Returns up to 1 year are on (Erstwhile SBI IT Fund) To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. Research Highlights for SBI Technology Opportunities Fund Below is the key information for SBI Technology Opportunities Fund Returns up to 1 year are on 1. Franklin India Technology Fund
Franklin India Technology Fund
Growth Launch Date 22 Aug 98 NAV (09 Jul 26) ₹453.48 ↑ 5.05 (1.13 %) Net Assets (Cr) ₹1,645 on 31 May 26 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk High Expense Ratio 2.08 Sharpe Ratio -0.83 Information Ratio 0.81 Alpha Ratio 0.82 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 30 Jun 21 ₹10,000 30 Jun 22 ₹8,979 30 Jun 23 ₹10,659 30 Jun 24 ₹16,072 30 Jun 25 ₹17,149 30 Jun 26 ₹14,137 Returns for Franklin India Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Jul 26 Duration Returns 1 Month 3.8% 3 Month 1% 6 Month -14.8% 1 Year -13.7% 3 Year 11.8% 5 Year 8.2% 10 Year 15 Year Since launch 17.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 -1.5% 2024 28.4% 2023 51.1% 2022 -22.3% 2021 39% 2020 56.8% 2019 12.4% 2018 11.9% 2017 19.1% 2016 -2.6% Fund Manager information for Franklin India Technology Fund
Name Since Tenure Venkatesh Sanjeevi 4 Oct 24 1.74 Yr. R. Janakiraman 1 Dec 23 2.58 Yr. Sandeep Manam 18 Oct 21 4.7 Yr. Data below for Franklin India Technology Fund as on 31 May 26
Equity Sector Allocation
Sector Value Technology 49.67% Communication Services 25.9% Consumer Cyclical 14.75% Financial Services 5.39% Health Care 0.04% Industrials 0.01% Asset Allocation
Asset Class Value Cash 3.79% Equity 95.84% Other 0.14% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 18 | BHARTIARTL19% ₹321 Cr 1,752,677
↑ 121,180 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY15% ₹243 Cr 2,089,607 Franklin Technology I Acc USD
Investment Fund | -8% ₹138 Cr 124,810 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | ETERNAL7% ₹113 Cr 4,524,577 HCL Technologies Ltd (Technology)
Equity, Since 30 Jun 14 | HCLTECH6% ₹106 Cr 894,643 PB Fintech Ltd (Financial Services)
Equity, Since 30 Nov 21 | 5433905% ₹88 Cr 517,479 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 04 | TCS5% ₹85 Cr 378,126 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 30 Sep 25 | CTSH5% ₹84 Cr 159,240 Amagi Media Labs Ltd (Technology)
Equity, Since 31 Jan 26 | AMAGI3% ₹44 Cr 1,108,025 Info Edge (India) Ltd (Communication Services)
Equity, Since 31 Jan 17 | NAUKRI2% ₹39 Cr 394,359 2. ICICI Prudential Technology Fund
ICICI Prudential Technology Fund
Growth Launch Date 3 Mar 00 NAV (09 Jul 26) ₹169.7 ↑ 2.09 (1.25 %) Net Assets (Cr) ₹13,358 on 31 May 26 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk High Expense Ratio 1.75 Sharpe Ratio -0.84 Information Ratio 0.49 Alpha Ratio 1.57 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 30 Jun 21 ₹10,000 30 Jun 22 ₹9,938 30 Jun 23 ₹10,768 30 Jun 24 ₹14,146 30 Jun 25 ₹15,909 30 Jun 26 ₹12,498 Returns for ICICI Prudential Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Jul 26 Duration Returns 1 Month 0.3% 3 Month -2.2% 6 Month -18.2% 1 Year -17.7% 3 Year 6.7% 5 Year 5.5% 10 Year 15 Year Since launch 11.3% Historical performance (Yearly) on absolute basis
Year Returns 2025 -1.9% 2024 25.4% 2023 27.5% 2022 -23.2% 2021 75.7% 2020 70.6% 2019 2.3% 2018 19.1% 2017 19.8% 2016 -4% Fund Manager information for ICICI Prudential Technology Fund
Name Since Tenure Vaibhav Dusad 2 May 20 6.16 Yr. Sharmila D’mello 30 Jun 22 4 Yr. Data below for ICICI Prudential Technology Fund as on 31 May 26
Equity Sector Allocation
Sector Value Technology 59.14% Communication Services 17.81% Consumer Cyclical 5.21% Health Care 3.44% Industrials 3.21% Financial Services 2.45% Real Estate 0.96% Consumer Defensive 0.63% Asset Allocation
Asset Class Value Cash 4.12% Equity 95.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY13% ₹1,786 Cr 15,386,043
↓ -200,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL12% ₹1,632 Cr 8,921,863
↑ 213,702 Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | TECHM8% ₹1,133 Cr 7,638,323
↑ 849,573 Mphasis Ltd (Technology)
Equity, Since 30 Jun 20 | MPHASIS4% ₹578 Cr 2,544,820
↑ 223,427 Coforge Ltd (Technology)
Equity, Since 31 Jul 20 | COFORGE4% ₹523 Cr 3,675,400 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 31 Jul 21 | COZ3% ₹410 Cr 771,638 Wipro Ltd. $$
Derivatives, Since 31 May 26 | 5076853% ₹405 Cr 21,531,000
↓ -11,523,000 LTM Ltd (Technology)
Equity, Since 31 Jul 16 | LTM3% ₹401 Cr 987,079
↑ 235,950 Sagility Ltd (Healthcare)
Equity, Since 30 Nov 24 | SAGILITY2% ₹289 Cr 70,479,558
↑ 5,566,869 Persistent Systems Ltd (Technology)
Equity, Since 31 May 20 | PERSISTENT2% ₹268 Cr 516,867
↑ 120,838 3. SBI Technology Opportunities Fund
SBI Technology Opportunities Fund
Growth Launch Date 9 Jan 13 NAV (09 Jul 26) ₹186.675 ↑ 2.10 (1.14 %) Net Assets (Cr) ₹4,228 on 31 May 26 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆ Risk High Expense Ratio 1.91 Sharpe Ratio -0.83 Information Ratio 0.49 Alpha Ratio 1.39 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 30 Jun 21 ₹10,000 30 Jun 22 ₹10,067 30 Jun 23 ₹11,580 30 Jun 24 ₹14,785 30 Jun 25 ₹17,320 30 Jun 26 ₹13,920 Returns for SBI Technology Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Jul 26 Duration Returns 1 Month 2.2% 3 Month -1% 6 Month -17.4% 1 Year -15.8% 3 Year 8.1% 5 Year 7.9% 10 Year 15 Year Since launch 16.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 1.5% 2024 30.1% 2023 24.8% 2022 -15.5% 2021 66.4% 2020 47.3% 2019 12.2% 2018 17.1% 2017 13% 2016 -3.3% Fund Manager information for SBI Technology Opportunities Fund
Name Since Tenure Vivek Gedda 1 Apr 24 2.25 Yr. Data below for SBI Technology Opportunities Fund as on 31 May 26
Equity Sector Allocation
Sector Value Technology 60.44% Communication Services 20.35% Consumer Cyclical 11.03% Financial Services 2.45% Industrials 1.99% Health Care 1.1% Consumer Defensive 0.39% Asset Allocation
Asset Class Value Cash 2.19% Equity 97.74% Debt 0.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL13% ₹549 Cr 3,000,000 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY12% ₹510 Cr 4,395,176 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 06 | TCS8% ₹321 Cr 1,420,000 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 Aug 24 | ETERNAL6% ₹266 Cr 10,600,000 Alphabet Inc Class A (Communication Services)
Equity, Since 31 Dec 23 | GOOGL5% ₹203 Cr 56,000 LTM Ltd (Technology)
Equity, Since 31 Oct 24 | LTM5% ₹203 Cr 500,000 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 23 | FSL5% ₹197 Cr 7,500,923 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 31 Jul 23 | COZ4% ₹175 Cr 330,000 Coforge Ltd (Technology)
Equity, Since 31 Aug 23 | COFORGE4% ₹171 Cr 1,200,000 Microsoft Corp (Technology)
Equity, Since 31 Aug 20 | MSFT4% ₹163 Cr 38,000
Who Should Consider Investing in Tech Sector Funds?
Aggressive long-term investors (≥ 5–7 years) looking for high growth and diversification beyond large-cap equities.
Those who understand volatility and have conviction in India’s tech and innovation roadmap.
Investors aiming to leverage structural themes (AI, digital infrastructure, semiconductors), not just legacy software earnings.
Avoid if…
- You can’t absorb large intra-year drawdowns
- You need stable, predictable returns (prefer large-cap or Balanced Fund)
- You’re uncomfortable with single-sector concentration risk
How to Invest in Best Technology Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
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Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Expert FAQs (for SEO + User Engagement)
Q1. Are tech sector funds appropriate for beginners?
A: Only if you understand their volatility and have a longer horizon. For novice investors, allocate a small portion to tech and balance with diversified Equity Funds.
Q2. How do tax and policy changes affect these funds?
A: GST 2.0 aims to streamline rates and reduce business bottlenecks—which could benefit tech companies.
Q3. Should I start a SIP or invest lump sum?
A: SIPs help mitigate timing risk in volatile sectors. Use lump sums strategically—e.g., during market dips validated by valuation indicators.
Q4. What secular challenges are looming?
A: Global slowdowns, U.S. tariffs, and muted corporate earnings continue to pressure sentiment despite India’s healthy GDP growth.
Final Words
India’s tech sector isn’t just riding a wave—it’s building the wave. From broadband to semiconductors, from AI to products, 2026 is shaping as a foundational year. Yes, volatility is part of the game. Yet, with record mutual fund AUM, growing domestic investor participation, and deeper structural themes, long-term tech-focused investors have reason to stay tuned.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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