Mutual Funds is a company that pools money from many investors and invests the money in securities. For this purpose assets management company have a fund manager who manages all this process and tries to provide the best return to its investors. In this post, we will try to provide you the name of the Best Technology Mutual Funds To Invest in India in 2021.
Sector Mutual Funds
According to the different schemes of mutual funds, Sector Mutual Funds are equity schemes that invest in specific sectors of the economy. These stocks can be economy, energy, infrastructure, pharma, technology, etc. These funds allow people to invest in the best-performing stocks in the specified sectors.
The best sectoral pharma funds are those that have consistently outperform their peers and beaten the broad benchmarks. The best funds stand out among others. The financial ratios of the best funds will be in much better shape than others and they quickly catch the interest of the potential investors.
Technology Mutual Funds
This is an equity sectoral mutual fund that invests exclusively in technology companies and hence the risk factor is a bit on the higher side. Technology is the way forward and the main change agent in most progressive economies today.
The government’s main thrust towards a “Digital India” and “Innovation Promotion” by the Ministry of Electronics and Information Technology (Meity) is why this sector is receiving unparalleled attention. 8 out of 10 start-ups in India belong to the Technology sector.
Technology funds in India have consistently provided an annualized return of 14% to 19% over a 5 year period. This is owing to a constant increase in the IT sector in the GDP share and continuously increasing exports of IT products and services.
If you are willing to a good rate of return in 2021, a technology mutual fund may be the best option to invest in mutual funds. Here is the list of Best Technology Mutual Funds to Invest in India 2021.
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Best Technology Mutual Funds To Invest in India 2021
In mutual funds, you can invest through a Systematic Investment Plan (SIP), and/or you can choose the lump sum option.
The investors can start making the investment through SIP with a minimum amount of Rs. 500. The below chart will show you the return performance (CAGR) of Best Technology Mutual Funds. Through this analysis of return, you can choose Best Technology Mutual Funds to invest in 2021.
| Best Technology Mutual Funds to Invest in 2021 (Direct Plan) | Scheme Size (Cr.) | 3 Yr (%) | 5 Yr (%) |
|---|---|---|---|
| Aditya Birla Sun Life Digital Fund DP (G) | 1662.22 | 33.10 | 26.88 |
| ICICI Prudential Technology DP (G) | 3494.21 | 33.98 | 26.83 |
| TATA Digital India Fund DP (G) | 1796.97 | 31.19 | 26.78 |
| SBI Technology Opportunities Fund DP (G) | 914.72 | 29.00 | 24.23 |
| Franklin India Technology Fund DP (G) | 604.73 | 26.64 | 22.49 |
How to Invest in Mutual Funds?
After getting knowledge about “Best Technology Mutual Funds for 2021”, it is necessary to know how to make an investment in mutual funds.
To make an investment in mutual funds, you can choose the offline or online mode as well. Making an offline investment in mutual funds makes a lot of paperwork. To avoid paperwork, it is better to make an investment online for which you can choose Upstox.
Upstox is a platform, where you can invest online through its web or app. There is no paperwork and all the procedure is online with e-KYC facilities.
Here is the link to Upstox, through which you can invest online in more than 2000 mutual funds. You can choose the best mutual fund of your choice and study all the detailed analyses.
Frequently Asked Questions- FAQs
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What is the best technology funds?
The investors can start making the investment through SIP with a minimum amount of Rs. 500. The below list will show you the Best Technology Mutual Funds.
1) Aditya Birla Sun Life Digital Fund DP (G)
2) TATA Digital India Fund DP (G)
3) ICICI Prudential Technology DP (G)
4) SBI Technology Opportunities Fund DP (G)
5) Franklin India Technology Fund DP (G) -
Are technology mutual funds a good investment?
Technology funds in India have consistently provided an annualized return of 14% to 19% over a 5 year period. This is owing to a constant increase in the IT sector in the GDP share and continuously increasing exports of IT products and services.
If you are willing to a good rate of return in 2021, a technology mutual fund may be the best option to invest in mutual funds -
Is it a good time to invest in technology mutual funds?
This is an equity sectoral mutual fund that invests exclusively in technology companies and hence the risk factor is a bit on the higher side. Technology is the way forward and the main change agent in most progressive economies today.
The government’s main thrust towards a “Digital India” and “Innovation Promotion” by the Ministry of Electronics and Information Technology (Meity) is why this sector is receiving unparalleled attention. 8 out of 10 start-ups in India belong to the Technology sector.
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Which is the best technology mutual fund?
Top 5 Best Technology Mutual Funds
Aditya Birla Sun Life Digital Fund DP (G)
TATA Digital India Fund DP (G)
ICICI Prudential Technology DP (G)
SBI Technology Opportunities Fund DP (G)
Franklin India Technology Fund DP (G) -
Which digital funds is best?
1) Aditya Birla Sun Life Digital Fund DP (G)
2) TATA Digital India Fund DP (G)
3) ICICI Prudential Technology DP (G)
4) SBI Technology Opportunities Fund DP (G)
5) Franklin India Technology Fund DP (G)
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
Mutual Funds Investments are subject to market risk, read all scheme related documents carefully.
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