Technology is a booming industry in India, and this sector is one of the highest income-yielding sectors. The Indian Government has been spending heavily in the technology sector to digitise the nation, and both old and new tech companies are reaping the benefits.
So, if you want to invest in these exponentially growing companies, you can consider adding technology mutual funds to your portfolios. To know about the best technology mutual funds, read on.
Technology mutual funds invest predominantly in IT and digital businesses and are suitable for investors with a high-risk appetite and a long-term investment horizon. Some top-rated technology funds are:
| Fund Name | 1Y Return | 3Y Return (CAGR) | 5Y Return (CAGR) | AUM (in Cr) |
| Franklin India Technology Fund | -14.43% | 12.01% | 8.82% | 1,645 |
| SBI Technology Opportunities Fund | -16.02% | 8.97% | 9.19% | 4,228 |
| ICICI Prudential Technology Fund | -17.44% | 7.89% | 6.73% | 13,068 |
| Tata Digital India Fund | -19.92% | 6.70% | 6.86% | 9,660 |
| Aditya Birla Sun Life Digital India Fund | -17.62% | 5.56% | 6.14% | 3,817 |
| HDFC Technology Fund | -22.60% | 4.21% | 4.21% | 1,335 |
| Edelweiss Technology Fund | 2.90% | 7.40% | 8.10% | 727 |
| Invesco India Technology Fund | -3.90% | 8.20% | 8.50% | 308 |
| LIC MF Technology Fund | 7.58% | 7.19% | 7.19% | 86 |
| Edelweiss US Technology Equity FOF | 5.80% | 15.20% | 17.80% | 2,200 |
Note: The data presented in the above table is as of 26th June 2026.
Technology funds come under the category of equity mutual funds and invest in IT and digital business companies while they are divided into sectoral technology funds, thematic tech funds, and diversified funds with a tech focus, as sectors like software, AI, and cloud computing deliver strong returns over the period.
Technology sector funds often offer high growth for the investments because of their sectoral diversification and with built-in professional management of the amc team. Here are the core advantages of technology funds
All Technology Funds are totally dependent on sector movements in the markets; if the sectors are performing well, the funds also perform well, and returns are linked to the companies' performance over the sectors.