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Top 3 Technology Funds To Invest in 2022

08 June 2022

Since the technology sector lies at the heart of IT and BPM (Business Process Management) sectors, it is likely to remain among the highest income yielding classes for the next several years. The Indian economy is growing rapidly and evolving too, which prompts companies to spend more on technology.

Quality infrastructure, booming internet market, and trend of freelancing are some of the features that will boost the technology sector’s performance in India. 

Also, the Indian government has been spending a lot of money for converting India into a digital India, and it will continue to do so for the next two to three years. Most of the new tech companies, along with old ones, are benefiting from it. Investors who are planning to invest in the Indian technology sector must look into sector mutual funds that invest directly in these exponentially growing companies.

Best Technology Mutual Funds to Invest in 2022

Investing in the tech sector can be a lucrative endeavour. Here are top technology sector funds that you can invest in:

S.No.

Fund Name

1.

ICICI Prudential Technology Fund

2.

SBI Technology Opportunities Fund

3.

Franklin India Technology Fund

 

Factors to Consider Before Investing in the Best Technology Mutual Funds in India 2022

If you’re thinking about investing in technology sector funds, there are a few things you should know:

1) Technology stocks can be volatile and unpredictable.

2) Technology sector funds invest in a variety of different tech companies, so they can be more volatile than other types of funds.

3) Technology sector funds are often used as hedge funds or long-term investments.

4) Technology sector funds are not appropriate for people who are just starting out with investing because of their high investment risk and volatility.

Top Technology Sector Funds: Performance Overview

1) ICICI Prudential Technology Fund

One of the oldest technology sector funds available in the market. This fund has lived up to the expectation of investors over the past years and is one of the most popular in the category. The ICICI Prudential Technology Fund is a diversified equity fund that aims to generate long-term income and capital appreciation by investing in stocks of globally established technology companies.

The scheme’s objective is to seek long-term capital appreciation by investing in equity and equity-related securities of technology and technology-dependent companies. A large share of the AUM will be invested in the stocks under the Benchmark Index, however, the scheme may also invest in other companies which form a part of the Information Technology Services Industry.

2) SBI Technology Opportunities Fund

This is a fund that is managed by SBI Funds Management, Inc. The fund invests in the development of high-impact technologies that can be used by companies worldwide to improve their business processes, products, services, and infrastructure. It focuses on four technology sectors: artificial intelligence (AI), robotics, data science, and blockchain. The fund aims to achieve capital appreciation through investments in new and established companies at various stages of development.

3) Franklin India Technology Fund

Franklin India Technology Fund is an Open-ended Sectoral-Technology Equity scheme managed by Franklin Templeton Mutual Fund House. This is another popular fund in the technology sector fund category and its past 3 years’ return has been 20.99% and 18.48% since its inception. 

The scheme seeks above-normal capital appreciation through investments in high-quality, fast-growing companies in the information technology sector. The Fund will follow a bottom-up approach to stock pricing.

Conclusion

The technology sector is one of the most profitable investment opportunities for investors in India. The sector has been showing a very high growth rate and is expected to grow at a faster pace in the coming years. This makes it a lucrative option for investors looking to maximize returns on their investments.

Technology stocks will most likely continue to do well in India. The Indian stock market is at an all-time high, and technology investments will likely continue to do well. The Indian economy has grown over the last twenty years, and tech stocks are not going anywhere anytime soon. It’s all about supplying a need and continuing to do that, and then some. So, if technology mutual funds fit your financial goals, you should go for them.

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

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Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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