+91-22-489139095 Best Performing Technology (IT) Sector Funds 2025
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 2025
- 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 25 - 26
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Franklin India Technology Fund Growth ₹522.101
↑ 3.23 ₹1,882 -0.7 18.2 -4.9 23.4 18 28.4 ICICI Prudential Technology Fund Growth ₹198.51
↑ 1.26 ₹14,734 -3.8 15.3 -7.4 15 18.4 25.4 SBI Technology Opportunities Fund Growth ₹218.251
↑ 1.94 ₹4,761 -1.5 18.3 -0.3 18.3 20.1 30.1 TATA Digital India Fund Growth ₹46.7287
↑ 0.14 ₹11,520 -3.1 14.8 -10.4 14.7 17.7 30.6 Aditya Birla Sun Life Digital India Fund Growth ₹170.23
↑ 1.49 ₹4,617 -3.2 16.6 -9.4 14.4 17.8 18.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 9 Oct 25 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 (₹1,882 Cr). Highest AUM (₹14,734 Cr). Lower mid AUM (₹4,761 Cr). Upper mid AUM (₹11,520 Cr). Bottom quartile AUM (₹4,617 Cr). Point 2 Oldest track record among peers (27 yrs). Established history (25+ yrs). Established history (12+ yrs). Established history (9+ yrs). Established history (25+ 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: 18.01% (lower mid). 5Y return: 18.43% (upper mid). 5Y return: 20.14% (top quartile). 5Y return: 17.68% (bottom quartile). 5Y return: 17.78% (bottom quartile). Point 6 3Y return: 23.39% (top quartile). 3Y return: 15.00% (lower mid). 3Y return: 18.30% (upper mid). 3Y return: 14.73% (bottom quartile). 3Y return: 14.39% (bottom quartile). Point 7 1Y return: -4.85% (upper mid). 1Y return: -7.44% (lower mid). 1Y return: -0.33% (top quartile). 1Y return: -10.36% (bottom quartile). 1Y return: -9.36% (bottom quartile). Point 8 Alpha: 2.80 (lower mid). Alpha: 4.12 (upper mid). Alpha: 9.41 (top quartile). Alpha: 0.58 (bottom quartile). Alpha: 0.69 (bottom quartile). Point 9 Sharpe: -0.87 (lower mid). Sharpe: -0.87 (upper mid). Sharpe: -0.39 (top quartile). Sharpe: -1.05 (bottom quartile). Sharpe: -1.05 (bottom quartile). Point 10 Information ratio: 1.25 (top quartile). Information ratio: 1.17 (lower mid). Information ratio: 1.22 (upper mid). Information ratio: 0.75 (bottom quartile). Information ratio: 0.48 (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 Oct 25) ₹522.101 ↑ 3.23 (0.62 %) Net Assets (Cr) ₹1,882 on 31 Aug 25 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk High Expense Ratio 2.08 Sharpe Ratio -0.88 Information Ratio 1.25 Alpha Ratio 2.8 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 Returns for Franklin India Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Oct 25 Duration Returns 1 Month 1.4% 3 Month -0.7% 6 Month 18.2% 1 Year -4.9% 3 Year 23.4% 5 Year 18% 10 Year 15 Year Since launch 18.7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 3.8% Fund Manager information for Franklin India Technology Fund
Name Since Tenure Venkatesh Sanjeevi 4 Oct 24 0.91 Yr. R. Janakiraman 1 Dec 23 1.75 Yr. Sandeep Manam 18 Oct 21 3.87 Yr. Data below for Franklin India Technology Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Technology 53.75% Communication Services 21.02% Consumer Cyclical 15.35% Financial Services 5.08% Industrials 1.04% Health Care 0.07% Asset Allocation
Asset Class Value Cash 3.33% Equity 96.54% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY18% ₹338 Cr 2,298,906 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 18 | BHARTIARTL15% ₹282 Cr 1,493,480 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 04 | TCS13% ₹236 Cr 764,559 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | 5433209% ₹169 Cr 5,367,142 Franklin Technology I Acc USD
Investment Fund | -9% ₹163 Cr 215,810 PB Fintech Ltd (Financial Services)
Equity, Since 30 Nov 21 | 5433905% ₹92 Cr 517,479 HCL Technologies Ltd (Technology)
Equity, Since 30 Jun 14 | HCLTECH4% ₹73 Cr 500,267
↑ 113,097 Swiggy Ltd (Consumer Cyclical)
Equity, Since 31 Jan 25 | SWIGGY3% ₹55 Cr 1,346,780 Zensar Technologies Ltd (Technology)
Equity, Since 31 Jan 23 | ZENSARTECH3% ₹49 Cr 642,259 Intellect Design Arena Ltd (Technology)
Equity, Since 31 Dec 22 | INTELLECT2% ₹45 Cr 460,931 2. ICICI Prudential Technology Fund
ICICI Prudential Technology Fund
Growth Launch Date 3 Mar 00 NAV (09 Oct 25) ₹198.51 ↑ 1.26 (0.64 %) Net Assets (Cr) ₹14,734 on 31 Aug 25 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk High Expense Ratio 1.75 Sharpe Ratio -0.87 Information Ratio 1.17 Alpha Ratio 4.12 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 Returns for ICICI Prudential Technology Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Oct 25 Duration Returns 1 Month 0.7% 3 Month -3.8% 6 Month 15.3% 1 Year -7.4% 3 Year 15% 5 Year 18.4% 10 Year 15 Year Since launch 12.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 3.9% Fund Manager information for ICICI Prudential Technology Fund
Name Since Tenure Vaibhav Dusad 2 May 20 5.34 Yr. Sharmila D’mello 30 Jun 22 3.18 Yr. Data below for ICICI Prudential Technology Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Technology 69.7% Communication Services 18.64% Consumer Cyclical 6.06% Industrials 1.63% Health Care 1.49% Financial Services 0.76% Consumer Defensive 0.26% Utility 0.08% Asset Allocation
Asset Class Value Cash 1.39% Equity 98.61% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY21% ₹3,085 Cr 20,990,718
↑ 200,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 19 | TCS8% ₹1,216 Cr 3,940,702 Bharti Airtel Ltd (Partly Paid Rs.1.25) (Communication Services)
Equity, Since 31 Oct 21 | 8901577% ₹1,014 Cr 7,017,670
↑ 838,231 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL7% ₹997 Cr 5,280,077
↑ 175,828 Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | TECHM6% ₹828 Cr 5,587,672
↓ -134,156 LTIMindtree Ltd (Technology)
Equity, Since 31 Jul 16 | LTIM5% ₹674 Cr 1,313,571 Wipro Ltd (Technology)
Equity, Since 30 Sep 19 | WIPRO4% ₹631 Cr 25,303,503
↑ 2,400,000 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 20 | HCLTECH4% ₹583 Cr 4,004,110 Mphasis Ltd (Technology)
Equity, Since 30 Jun 20 | MPHASIS4% ₹560 Cr 2,009,665
↑ 61,050 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 Aug 22 | 5433203% ₹388 Cr 12,368,617
↓ -2,891,234 3. SBI Technology Opportunities Fund
SBI Technology Opportunities Fund
Growth Launch Date 9 Jan 13 NAV (09 Oct 25) ₹218.251 ↑ 1.94 (0.90 %) Net Assets (Cr) ₹4,761 on 31 Aug 25 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆ Risk High Expense Ratio 1.91 Sharpe Ratio -0.39 Information Ratio 1.22 Alpha Ratio 9.41 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 Returns for SBI Technology Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Oct 25 Duration Returns 1 Month 0.8% 3 Month -1.5% 6 Month 18.3% 1 Year -0.3% 3 Year 18.3% 5 Year 20.1% 10 Year 15 Year Since launch 19.3% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 2.4% Fund Manager information for SBI Technology Opportunities Fund
Name Since Tenure Vivek Gedda 1 Apr 24 1.42 Yr. Data below for SBI Technology Opportunities Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Technology 61.81% Communication Services 19.68% Consumer Cyclical 7.91% Industrials 2.85% Financial Services 2.6% Health Care 1.02% Consumer Defensive 0.75% Asset Allocation
Asset Class Value Cash 3.37% Equity 96.63% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY14% ₹661 Cr 4,500,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL13% ₹642 Cr 3,400,000 Coforge Ltd (Technology)
Equity, Since 31 Aug 23 | COFORGE7% ₹328 Cr 1,900,000 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 23 | FSL6% ₹268 Cr 7,645,887 LTIMindtree Ltd (Technology)
Equity, Since 31 Oct 24 | LTIM5% ₹257 Cr 500,000 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 Aug 24 | 5433205% ₹236 Cr 7,530,530 Blackbuck Ltd (Technology)
Equity, Since 30 Nov 24 | BLACKBUCK5% ₹225 Cr 3,536,533 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 31 Jul 23 | COZ4% ₹209 Cr 330,000 Microsoft Corp (Technology)
Equity, Since 31 Aug 20 | 0QYP4% ₹169 Cr 38,000 Delhivery Ltd (Industrials)
Equity, Since 31 Jan 23 | 5435293% ₹136 Cr 2,900,000
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.
Complete your Registration and KYC Process
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, 2025 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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