Technology Funds in 2021

What are Technology Funds?

Technology funds typically invest in equities of technology companies. They try to bet on new emerging technologies which are likely to disrupt the tech world with new innovations. ICICI Prudential Technology Fund, SBI IT Funds and Aditya Birla Sun Life New Millennium Fund are examples of some prominent Indian technology funds. Their portfolio consists of tech companies like Infosys, HCL Technologies, Tech Mahindra, Mind Tree etc. Most of the companies in these funds operate in the domain of solving complex business challenges with breakthrough technical innovations. These include IT, digital transformation, data analytics, Artificial Intelligence and Machine Learning.

The popularity of Technology Funds

Since the last few years, technology funds become quite popular in terms of investment opportunities. This is owing to a constant increase in the IT sector in the GDP share and continuously increasing exports of IT products and services. As per NASSCOM report the domestic revenue of the IT was pegged at US$ 38 billion while the revenue from export was estimated at US$ 117 billion in FY17.

Technology funds in India have consistently provided an annualized return of 14% to 19% over a five year period. With such a decent return, these can serve as a good diversification option for investors looking to cash in on the ever-growing Technology sector in the country.

The Future of Technology Funds

In June of 2017, the S&P 500 Index (Standard & Poorʼs 500) was up by 8%, while the FANG stocks (Facebook, Amazon, Netflix, Google) were up 25-30%. Technology is the way forward and the trends are very promising.

The growth in the PC and smartphone market is expected to be slow since the market has already been saturated. However, newly evolving sectors like cloud computing and AI (Artificial Intelligence) which are disrupting traditional technologies are taking over and will be the golden geese of the future.

The technology sector is continuously growing, so itʼs true that some of your investments may face some near-term headwinds. However, experts project that in the coming days,technology mutual funds will have the capacity to outperform global equity funds. Hence, if there is one sector you need to keep your eyes peeled for, then this is it.

Following are few noteworthy Technology Sector Mutual Fund Performances.
Name of the Scheme 1 Year Returns 3 Years Returns 5 Year Returns
Franklin India Technology Fund Growth 26.8 9.5 18.4
ICICI Prudential Technology Fund Growth 32.2 9.9 22.3
SBI Technology Opportunities Fund Growth 34 9.2 19.9
Aditya Birla Sun Life New Millennium FundGrowth 39.2 13.5 21.6

Moneyedge Recommendation

Large Cap Funds AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
Mirae Asset Large Cap Fund-Reg Gr 20797 12.21 8.09 13.63 13.56
Axis Bluechip Fund-Reg Gr 20480 17.11 14.17 14.94 12.51
Canara Robeco Bluechip Fund-Reg Gr 1132 20.74 13.07 14.29 12.09
BNP Paribas Large Cap Fund-Reg Gr 987 14.17 8.89 11.1 11.97
ICICI Prudential Bluechip Fund-Reg Gr 25224 11.24 6.86 11.82 11.34
Multi Cap Funds AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
Invesco India Multicap Fund-Reg Gr 1035 17.44 2.23 9.85 14.27
Franklin India Focused Equity Fund-Reg Gr 7205 9.1 3.18 9.72 13.11
UTI Equity Fund 13456 29.28 14.44 14.54 12.99
Kotak Standard Multicap Fund-Reg Gr 32441 10.09 6.99 12.7 12.6
Canara Robeco Equity Diversified Fund-Reg Gr 2784 20.53 10.89 13.09 11.67
Mid Cap Funds AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
UTI Midcap Fund-Reg Gr 4491 32.5 3.93 10.36 14.8
Tata Midcap Fund-Reg Gr 971 23.72 4.46 10.96 14.27
DSP Midcap Fund-Reg Gr 9467 23.5 6.42 13.37 14.16
SBI Magnum Midcap Fund-Reg Gr 4113 28.92 1.66 8.19 14.01
Invesco India Midcap Fund-Reg Gr 1142 25.19 6.52 11.87 13.84
Small Cap Funds AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
SBI Small Cap Fund-Reg Gr 6202 31.29 3.57 15.67 18.78
Nippon India Small Cap Fud-Reg Gr 10318 28.7 1.03 12.18 17.1
Kotak Small Cap Fund-Reg Gr 2154 34.44 4.85 12.47 13.56
Franklin India Smaller Companies Fund-Reg Gr 6152 17.56 -2.93 7.74 14.47
DSP Midcap Fund-Reg Gr 5791 33.86 -0.57 9.74 15.44
Tax Saver Funds AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
Axis Long Term Equity Fund-Reg Gr 25618 18.27 11.85 14.02 16.41
BNP Paribas Long Term Equity Fund-Reg Gr 488 16.01 6.42 10.18 12.67
Canara Robeco Equity Tax Saver Fund-Reg Gr 1333 24.75 12.51 13.49 12.29
Invesco India Tax Plan-Reg Gr 1280 17.34 8.26 12.38 13.13
Tata India Tax Savings Fund-Reg Gr 2342 10.19 4.74 11.55 12.45
Equity Hybrid Funds AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
ICICI Prudential Equity and Debt Fund-Reg Gr 16331 8.86 5.03 10.57 12.46
Canara Robeco Equity Hybrid Fund-Reg Gr 3906 18.38 10.16 11.7 12.43
HDFC Equity Hybrid Fund-Reg Gr 17168 11.65 5.33 10.31 12.21
SBI Equity Hybrid Fund-Reg Gr 34353 11.86 8.3 11.04 11.87
Tata Hybrid Equity Fund-Reg Gr 3352 8.94 4.55 7.34 10.99
Equity Balanced Advantage AUM (in Crores) 1 Year 3 Year 5 Year 10 Year
ICICI Prudential Balanced Advantage Fund-Reg Gr 27647 10.8 7.88 10.04 11.68
DSP Equity and Bond Fund-Reg Gr 6025 15.72 7.79 11.68 10.79
HDFC Balanced Advantage Fund-Reg Gr 38067 7.15 3.21 9.03 10.29
ICICI Prudential Multi Asset Allocator Fund-Reg Gr 10606 10.98 4.87 10.83 10.65
Edelweiss Balanced Advantage Fund-Reg Gr 1924 27.78 10.15 10.31 10.14

Articles you may also like