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Best Technology Mutual Funds in India 2026: Top Tech Sector Funds

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.

Top 10 Technology Mutual Funds in 2026

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 Name1Y Return3Y 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 Fund2.90%7.40%8.10%727
Invesco India Technology Fund-3.90%8.20%8.50%308
LIC MF Technology Fund7.58%7.19%7.19%86
Edelweiss US Technology Equity FOF5.80%15.20%17.80%2,200

Note: The data presented in the above table is as of 26th June 2026.

Types of Technology Funds

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.

Sectoral Technology Funds

  • Broad IT Focus: Sectoral Technology Funds invest across the entire information technology spectrum, including large software exporters and hardware makers.

Thematic Technology Funds

  • Niche Trends: Focuses on specific sub-sectors like artificial intelligence, fintech, cybersecurity, or clean energy tech.
  • Targeted Exposure: Seeks out high growth in emerging fields rather than traditional IT services.

Diversified Funds with Tech Focus

  • Mixed Sectors Funds: Diversified Funds hold multiple technology stocks alongside companies from healthcare, finance, and consumer goods.
  • Lower Risk: Diversified Funds reduce volatility by not depending entirely on the tech industry.

Advantages of Investing in Technology Funds

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

  • High Growth Potential: Investing in tech sector funds can grow your investment as fast as digital tools and software transform everyday business.
  • Built-in Diversification: Tech Sector funds spread money across many tech areas like hardware, software, and digital services, instead of relying on just one company or single technology sector.
  • Expert Management: Professional fund managers study market trends and pick strong tech companies for investing.

Conclusion

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.