The technology fund is a sectorial fund. Technology fund makes investment in information technology-related stocks and business. Information Technology is one of the key driving factor behind the economy. IT sector is booming despite of Covid-19.
The growth behind information technology companies are mainly due to technology advancement. The companies dealing in digital services, industry 4.0, Artificial intelligence, machine learning & data science is in demand.
Thus it makes sense to invest in information technology related stocks and technology funds. However, technology funds are risky in nature as performance of these funds purely depends on performance of IT sector. One can expect double digit returns from these mutual funds in 3-5 years.
In this post, I will share list of Top Technology Fund for Investment 2021-22. These funds have generated 130% returns for the investors in 2021-22.
Technology Fund for Investment 2021-22 – 130% Returns 1 Year
ICICI Pru Technology Fund – Growth
ICICI Pru Technology Fund is one of the best technology fund. It is three star rated mutual fund by CRISIL. This fund is managed by the experience fund manager. The major stock holding of this fund are Infosys, HCL, TCS & Tech Mahindra. Expense ratio of this fund is slightly higher. This fund has generated 134% returns for the investors in last 1 year. 1 Lakh invested this fund has become 2.34 Lakh in 3 years. This fund has generated 1190% returns since launch.
Tata Digital India Fund
Tata Digital India Fund is another best technology fund for investment. Tata Digital India Fund invests 80% of net assets in equity related instruments of companies in IT sectors. The top holdings of Tata Digital India fund are Infosys, L&T Infotech, HCL, Persistent system and Tech Mahindra. Tata Digital India Fund has generated 118% returns in last 1 year. 1 Lakh investment in this fund has become 2.17 Lakh in 3 years.
Aditya Birla Sun Life Digital India Fund
Aditya Birla Sun Life Digital India Fund is CRISIL four star rated fund. The prime focus of this fund is to invest in technology and technology related companies. Top holding of Aditya Birla Sun Life Digital India Fund are Infosys, TCS, Tech Mahindra, HCL Technologies and Cyient. This fund has generated 113% returns for the investors in last one year. This fund has generated 210% returns for the investors in last 5 years.
SBI Technology Opportunity Funds
SBI Technology Opportunity Fund is next fund that have generated magnificent returns for the investors in last one year. SBI Technology Opportunity fund make investment in Indian stock as well as foreign stocks. This fund has generated 94% returns for the investors in last one year. Top stocks where this fund have invested money are Infosys, HCL Technology, TCS & Alphabet. The expense ratio of this fund is slightly higher.
Franklin India Technology Fund
Franklin India Technology Fund is next best technology fund in the list. Franklin India Technology fund is comparatively new. It is medium size fund. This fund has generated 74% returns for the investors in last one year. Top holding of this fund are Infosys, HCL and TCS. 1 Lakh investment in this fund has become 1.99 in last 3 years. It is categorized as risky fund for the investment.
Who should invest in Technology Fund?
Technology fund are sectorial fund. Technology funds are risky in nature. The investor with ability to tolerate risk can only plan investment in this fund. Investment in these funds should be done with prospective of 5-7 Years. One should monitor performance of these funds at regular interval. It is advisable to go for SIP route while making investment in technology funds.