5 Technology Funds That Offered Over 20% Returns In Last 3 Years
Today, we're going to do a deep dive into the world of top-performing technology funds.
Here's the most intriguing part -
Not only have these funds surpassed the average market returns, but they've consistently maintained over 20% gains in the past three years.
Now, the questions arise:
- What makes them stand out?
- And how do they continue to defy the market's volatility?
We'll unveil the secrets behind their success and how you can potentially benefit from their strategies.
If you wish to capitalize on the tech boom, understanding these funds could be your gateway to higher returns.
Eager to find out more? Let’s get started.
What Is a Technology Fund?
A technology fund is a type of investment fund, typically a mutual fund or an exchange-traded fund (ETF), that focuses primarily on investing in stocks of technology companies. These companies can range from giants like Wipro Technologies or Cognizant Technology Solutions to smaller startups that operate in the tech sector.
List of 5 Technology Funds Achieving Over 20% Returns in the Last 3 Years
We have summed up a few technology funds that have offered the best returns in the last 3 years. Let's take a look at them one by one:
- Aditya Birla Sun Life Digital India Fund
- SBI Technology Opportunities Fund
- ICICI Prudential Technology Fund
- Franklin India Technology Fund
- Tata Digital India Fund
1. Aditya Birla Sun Life Digital India Fund
This fund was launched back in 2000 and is still one of the most secure investments when we talk about the technology sector. The major goal of this fund has been capital growth, something that it has achieved consistently all this while.
Another major objective of this digital India fund is income generation with a focus on technology and technology-dependent companies. As the dependence on technology has increased with time, the fund has made huge growth thanks to its focus on technology.
Aditya Birla Sun Life Digital India Fund is focusing on a nice mixture of value as well as a growth style of investing. It is safe to say that it has been one of the best technology funds since its launch, especially in the last 3 years.
Returns
- 1 year - 16.56%
- 3 years - 26.46%
- 5 years - 20.48%
- Since Launch - 11.68%
Expense Ratio
The expense ratio of the fund is 1.92% for the Regular plan as of July 31, 2023.
Fund Size
With continuous growth, the fund's size has increased multifold. Its current Assets Under Management are worth Rs 3,717.95 crore as of July 31, 2023.
Disclaimer: The information is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results in investment.
2. SBI Technology Opportunities Fund
This fund has been directly managed by SBI Funds Management, Inc. since its launch in 2013.
This fund has focused on high-impact technologies. Since these technologies are used worldwide, they bring huge growth prospects. These technologies are used to improve their business processes, products, services, and infrastructure.
The technological sectors focused here are artificial intelligence (AI), robotics, data science, and blockchain. If you have been looking around nicely, you must have seen that these sectors are the most trending topics right now.
The fund has invested in a mixture of new and established companies at different stages of development. With a return of over 26% in the last 3 years, you can see how it's successful at its job.
Returns
- 1 year - 15.18%
- 3 years - 26.96%
- 5 years - 19.53%
- Since Launch - 15.22%
Minimum Investment
The minimum investment required is Rs 5,000 and the minimum additional investment is Rs 1,000. In the case of SIP investments, you can start from an amount as low as Rs 500.
Disclaimer: The information is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results in investment.
3. ICICI Prudential Technology Fund
This is one of the oldest technology funds available in the market. Just like Aditya Birla Sun Life Digital India Fund, it was launched back in 2000. Since it has continuously lived up to the expectations of the investors, it is still in demand as one of the trusted technology funds.
The ICICI Prudential Technology Fund is a diversified equity fund that aims to generate long-term income and capital appreciation. This task is fulfilled by putting the money in the stocks of those companies that have a huge global reach.
The major aim is to get long-term capital appreciation. The fund pool managers invest in equity and equity-related securities of technology and technology-dependent companies.
Returns
- 1 year - 10.09%
- 3 years - 26.77%
- 5 years - 20.2%
- Since Launch - 12.16%
Expense Ratio
If we talk about the regular plan, the expense ratio stands at 1.76% for the Regular plan currently.
Disclaimer: The information is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results in investment.
4. Franklin India Technology Fund
This is the oldest technology fund that we have listed here. It was launched in 1998 by Franklin Templeton Mutual Fund House.
The focus here is to invest in high-quality companies dealing in the technological sector. The scheme looks at the fast-growing companies and invests in them so that great returns can be extracted. This can also be seen through its rate of return. Since its launch, the scheme has provided returns of 18.73%.
With the focus on a bottom-up approach, you can expect the fund to grow further with consistency. You will have an exit load of only 1% if the fund is redeemed within 1 year.
Returns
- 1 year - 22.65%
- 3 years - 20.78%
- 5 years - 17.41%
- Since Launch - 18.62%
The Fund Size
The Franklin India Technology Fund currently holds Assets under Management worth Rs 873.83 crore as of July 31, 2023.
Disclaimer: The information is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results in investment.
5. Tata Digital India Fund
This scheme was launched in 2015. In this short period, it has earned people's faith because of its ability to provide one of the best returns in the technology sector.
It is focused on long-term capital appreciation by investing at least 80% of its net assets in equity/equity-related instruments of the companies in the Information Technology Sector in India. The scheme has been successful at its objective with a return of almost 18% since its launch.
Returns
- 1 year - 10.77%
- 3 years - 26.54%
- 5 years - 18.19%
- Since Launch - 17.8%
Fund Size
As of July 31, 2023, the Assets Under Management for Tata Digital India Fund are worth Rs Rs 7573.98 crore.
Minimum Investment
You have to invest a minimum amount of Rs 5000 and a minimum additional amount of Rs 1000 in this fund. The minimum SIP investment is a mere Rs 150.
Disclaimer: The information is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results in investment.
Reasons Why You Should Invest In Technology Funds
There are various reasons why you need to invest in technology funds:
1. Driving Forces of the Modern Age
Technological advancements are no longer mere conveniences, they are pivotal in shaping the future.
Given the insatiable global demand for the latest technologies, placing your resources in high-end technological schemes not only aligns with current trends but also secures a vantage point for future gains.
2. Cost-Effective Strategy for Growth
A direct foray into technological stocks can be a heavy expenditure. However, the pathway to technology investments becomes far more economical when done through Systematic Investment Plans (SIPs).
This structured approach lets you tap into the burgeoning tech sector without burning a hole in your pocket.
3. Expertise and Vigilance at the Helm
Investing in technology funds also ensures that your investments are overseen by seasoned professionals. Fund managers, with their vast experience and in-depth knowledge of the tech industry, constantly monitor the performance of companies in their portfolio.
Armed with a pulse on the latest news and shifts in the technology landscape, they are adept at predicting trends. This expertise translates into informed decisions, where they can gauge which tech stocks are poised to offer the most promising returns in the foreseeable future.
Final Analysis
We have outlined 5 of the best technology funds that have provided the highest returns in the last 3 years. It is safe to say that technology is a sector that's growing at a rapid pace and will continue to do so for a long time in the future.
If you haven't invested in technology funds before, there are a few things to keep in mind:
- While they yield huge returns, they are generally volatile as well as unpredictable.
- The technology funds are invested in different technological companies, the reason behind their volatility.
- They are generally inappropriate for beginners as the risk level is high here.
If you want to invest in technology funds being a beginner, you should make your decisions under the guidance of an expert.
For more such information, stay tuned with the INDmoney app. We have a lot of things in store regarding investments!