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Best IT Mutual Funds in India 2026

India’s technology industry is projected to reach $ 350 bn by 2026, driven by global delivery centres, rising digital spending and strong export demand. With the broader tech ecosystem expected to touch $ 500 bn in revenue by 2030, IT mutual funds offer a focused way to track this growth through companies engaged in software services, digital transformation, engineering R&D, cloud and AI-led technologies.

Top IT Mutual Funds in 2026

Best IT Mutual Funds in India 2026

View the best IT mutual funds in India for 2026, ranked by 5‑year CAGR. Analyse the performance of funds focused on the technology sector.

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Showing 1 - 13 of 13 results

last updated at 11:00 PM IST 
NameMFs (13)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓CAGR 5YCAGR 5Y↓↓CAGR 3YCAGR 3Y↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓↓NAVNAV↓↓Expense RatioExpense Ratio↓↓Exit LoadExit Load↓↓VolatilityVolatility↓↓Tracking ErrorTracking Error↓
1.SBI Technology Opp Fund
SBI Technology Opp Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
4,273.37
4,273.37
12.21
12.21
10.91
10.91
-5.84
-5.84
210.63
210.63
0.92
0.92
0.50
0.50
14.78
14.78
-
-
2.Franklin India Technology Fund
Franklin India Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
1,670.19
1,670.19
10.22
10.22
15.11
15.11
-6.53
-6.53
482.39
482.39
1.11
1.11
1.00
1.00
14.16
14.16
-
-
3.ICICI Pru Technology Fund
ICICI Pru Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
13,572.40
13,572.40
9.72
9.72
9.14
9.14
-9.39
-9.39
187.35
187.35
1.01
1.01
1.00
1.00
17.10
17.10
-
-
4.Tata Digital India Fund
Tata Digital India Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
9,896.30
9,896.30
9.68
9.68
8.71
8.71
-11.76
-11.76
45.56
45.56
0.54
0.54
0.25
0.25
18.52
18.52
-
-
5.Aditya Birla SL Digital India Fund
Aditya Birla SL Digital India Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
3,882.51
3,882.51
8.72
8.72
7.62
7.62
-9.71
-9.71
160.16
160.16
0.83
0.83
1.00
1.00
17.93
17.93
-
-
6.Quant Teck Fund
Quant Teck Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
225.76
225.76
-
-
-
-
-25.27
-25.27
8.73
8.73
0.89
0.89
1.00
1.00
20.39
20.39
-
-
7.HDFC Technology Fund
HDFC Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
1,363.41
1,363.41
-
-
-
-
-12.82
-12.82
11.32
11.32
0.97
0.97
1.00
1.00
17.73
17.73
-
-
8.Edelweiss Technology Fund
Edelweiss Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
647.73
647.73
-
-
-
-
4.73
4.73
11.03
11.03
0.64
0.64
1.00
1.00
14.78
14.78
-
-
9.Kotak Technology Fund
Kotak Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
574.47
574.47
-
-
-
-
-8.89
-8.89
10.02
10.02
0.88
0.88
0.50
0.50
16.86
16.86
-
-
10.Invesco India Technology Fund
Invesco India Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
275.69
275.69
-
-
-
-
-1.74
-1.74
8.49
8.49
0.82
0.82
0.50
0.50
17.95
17.95
-
-
11.WOC Digital Bharat Fund
WOC Digital Bharat Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
389.01
389.01
-
-
-
-
-4.67
-4.67
8.71
8.71
0.64
0.64
1.00
1.00
18.29
18.29
-
-
12.Motilal Oswal Digital India Fund
Motilal Oswal Digital India Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
730.43
730.43
-
-
-
-
-8.10
-8.10
8.02
8.02
1.01
1.01
1.00
1.00
20.59
20.59
-
-
13.LIC MF Technology Fund
LIC MF Technology Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
-
-
-
-
-
-
-
-
10.10
10.10
-
-
1.00
1.00
7.60
7.60
-
-
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Analyse IT Mutual Funds Further

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: 5Y CAGR: Highest to Lowest, Plan: Growth, Category: Equity, Sub-category: Sectoral Fund - Technology

What are IT Mutual Funds in India

IT mutual funds are sectoral equity funds that invest most of their portfolio in companies from India’s information technology industry. These funds focus on listed IT businesses involved in software services, IT consulting, digital solutions, cloud, data analytics, and related technology services. Because the portfolio is concentrated in one sector, the fund’s performance aligns closely with trends in the Indian IT sector.

Overview of the Best IT Mutual Funds

SBI Technology Opp Fund

A sectoral technology equity fund from SBI Mutual Fund that seeks long-term capital appreciation by investing in a diversified portfolio of technology and technology-related stocks. The fund is aimed at capturing growth driven by advancements in tech, software, and allied IT services.

Franklin India Technology Fund

A long-established technology sector mutual fund by Franklin Templeton that invests predominantly in tech and tech-related companies across market capitalisations. It aims for above-average capital appreciation by picking quality tech firms positioned to benefit from technology development and adoption.

ICICI Pru Technology Fund

A sectoral equity mutual fund from ICICI Prudential Mutual Fund that aims for long-term capital growth by investing primarily in technology and technology-related companies. It follows the BSE Tech index and puts most of its assets into IT and tech firms listed in India. The fund carries a very high risk given its concentrated exposure to the tech sector.

Tata Digital India Fund

A technology-focused equity fund offered by Tata Mutual Fund that invests mainly in digital and IT companies expected to benefit from digital adoption, tech services growth, and global outsourcing trends. It’s designed for investors looking for targeted exposure to India’s tech and digital ecosystem.

Aditya Birla SL Digital India Fund

This sectoral equity fund from Aditya Birla Sun Life Mutual Fund focuses on companies in the IT and digital space, including software services, telecom-enabled tech, and digital adoption plays. It aims to benefit from rapid digital transformation trends in India and globally.

How to Invest in Best IT Mutual Funds in India?

Here's how you can identify and invest in the best IT mutual funds in India with Tickertape Mutual Fund Screener -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open IT Mutual Funds Screener
  3. Filter out the best IT mutual funds based on over 50 fundamental and technical filters.
  4. After identifying the IT mutual fund that aligns with your investment thesis, click on "Place Order" to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via 'lumpsum' or start a 'SIP' in IT mutual funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation on IT Mutual Funds in India

IT mutual funds in India are treated as equity mutual funds, and gains from them are taxed as capital gains.

Capital Gains Tax Holding Period Tax Rate
Short-Term Capital Gains (STCG) Less than 12 months 20%
Long-Term Capital Gains (LTCG) More than 12 months 12.50%

Benefits of Investing in IT Mutual Funds

Exposure to Fastest Growing Sector

India’s IT industry is expected to reach $ 350 bn by 2026 and contribute 10% to India’s GDP. IT mutual funds give you direct exposure to this large and expanding sector without needing to pick individual stocks.

Strong Demand for Digital and AI Services

India’s technology industry is expected to reach $ 500 bn in revenue by 2030, nearly double its current size. This growth is driven by cloud, GenAI, cybersecurity, and digital transformation. IT mutual funds hold companies that benefit directly from this rising demand.

Diversification Within the Sector

Even though IT mutual funds focus on a single sector, they invest across software services, digital transformation, engineering R&D, AI, and telecom-tech companies. This helps reduce single-company risk while staying within the tech theme.

Benefit From the Exports

Indian IT firms are forming strategic global partnerships and increasingly serving new verticals. This broad client base stabilises earnings, which supports the performance of IT mutual funds over time.

Growing Global Tech Footprint

Indian IT companies operate delivery centres across the world and serve multiple industries like BFSI, telecom and retail. Their global presence helps them earn stable revenues, especially in dollars. IT mutual funds let you tap into this global business model through one investment.

Who Should Consider IT Mutual Funds

Sector-Focused Investors

Investors who want dedicated exposure to India’s technology industry may consider these funds. They invest in companies involved in software services, engineering R&D, cloud, AI, and digital transformation, offering a concentrated view of this ecosystem.

Global Trend Trackers

IT fund performance is closely tied to global enterprise spending, outsourcing demand, and economic conditions in the US and Europe. Investors who regularly monitor these trends may find it easier to understand how the fund behaves.

Long-Term Theme Followers

Individuals who study long-term technology themes such as AI adoption, automation, cybersecurity, and cloud migration may consider IT funds as a way to align their portfolio with these structural shifts.

Diversified Portfolio Holders

Since IT funds focus on a single sector, they are typically used as an add-on to an already diversified equity allocation. Investors who have core holdings in place may evaluate them as a thematic addition.

Risks of Investing in IT Mutual Funds

Currency Movement

IT companies earn in dollars but spend in rupees. A strong rupee reduces their profits. During phases when the rupee appreciates, IT funds may see weaker performance even if business volumes stay the same.

Volatility of Sector-focused Funds

An IT mutual fund invests solely in technology companies don’t spread money across different sectors. This means they can surge quickly when the tech sector does well, but they can also drop sharply when the sector slows down. As a result, these funds tend to be more volatile than diversified equity funds.

Rapid Changes in Technology

The industry is shifting towards AI, automation, cloud and cybersecurity. Companies that fail to adapt or invest enough in new technologies may lose clients. If such companies form a large part of the fund’s portfolio, the fund’s performance can suffer.

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Factors to Consider Before Investing in an IT Mutual Fund

Sector-Specific Ups and Downs

IT mutual funds move sharply because they invest in one sector. They do well when tech spending is strong, but can fall quickly when global demand slows. Make sure you are comfortable with these swings before investing.

Influence of Global Economy

Most Indian IT companies serve clients in the US and Europe. Any change in their economic conditions, hiring cuts, or lower tech budgets can impact your fund. Keeping an eye on global trends helps set realistic expectations.

Effect of Rupee–Dollar Movements

Since IT companies earn in dollars, currency movement plays a major role. A strong rupee can reduce earnings, while a weak rupee often boosts profits. Understanding this relationship helps investors anticipate fund performance.

Portfolio Strategy and Stock Selection

Every fund manager builds the IT portfolio differently. Some focus on large-cap leaders, while others include more mid-cap or niche digital companies. Reviewing the portfolio mix helps you understand how the fund takes exposure within the tech sector.

Costs and Expense Ratio

Sector funds often come with different expense structures. Being aware of charges like the expense ratio or exit load

Conclusion

IT mutual funds offer a focused way to invest in India’s technology and digital-services sector. Understanding factors such as global demand, currency movement, valuation cycles, and the fund’s portfolio approach can help investors assess whether this category aligns with their overall strategy. Evaluating risks, sector concentration, and long-term industry trends also provides a clearer context for how these funds behave across market phases. Investors can use the Tickertape Mutual Fund Screener to study each IT mutual fund in detail, compare portfolios, check sector weights, and review past performance to support their research and decision-making.

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Frequently Asked Questions About IT Mutual Funds

  1. What are IT mutual funds?

    IT mutual funds are sectoral equity funds that invest mainly in companies from the information technology and digital services industry. These funds typically hold stocks of firms involved in software services, consulting, cloud, engineering, R&D, cybersecurity, and related technology segments.

  2. Which IT mutual fund is best?

    As of 20 January 2026, some of the top IT sector mutual funds in India based on 3-year annualised returns include:
    1. Franklin India Technology Fund
    2. SBI Technology Opportunities Fund
    3. Tata Digital India Fund
    4. ICICI Prudential Technology Fund
    5. Aditya Birla Sun Life Digital India Fund


    Disclaimer: Please note that the technology funds list is for educational purposes only, and is not recommendatory.

  3. How do IT sector mutual funds work?

    These funds pool money from investors and allocate it to a portfolio of IT and tech-enabled companies. The fund’s performance depends on sector growth, global demand for technology services, currency movement, and the earnings of the companies it holds.

  4. Are IT funds a safe investment?

    Whether IT funds are considered safe or not depends on several factors. Their performance is closely linked to global tech spending, rupee–dollar movement, interest rate trends, and overall market conditions. Because they invest only in one sector, they can be more sensitive to these changes

    Disclaimer: Please note that this information is for educational purposes only, and is not recommendatory.

  5. Are IT funds suitable for beginners?

    IT funds may appeal to beginners who have an interest in the technology sector and want thematic exposure. However, the concentrated nature of these funds means beginners need to understand that performance can fluctuate more than broad-market funds.

    Disclaimer: Please note that this information is for educational purposes only, and is not recommendatory.

  6. How are IT mutual funds taxed in India?

    IT mutual funds follow the same tax rules as other equity-oriented funds. If the units are sold within 12 months, the gains are treated as Short-Term Capital Gains (STCG) and taxed at 20 percent. When the holding period exceeds 12 months, the gains fall under Long-Term Capital Gains (LTCG) and are taxed at 12.50 percent.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.