When it comes to future investment strategies, technology sector mutual funds top the priority list of investors. In today’s digital age, technology is growing rapidly, and investing in it can prove to be beneficial in the long run. But do you know which are the Best Technology Sector Mutual Funds 2024 that are suitable for your investment? In this blog, let us understand in detail what are technology mutual funds, the benefits and risks of investing in them, and what are the top performing funds of this year.
What are Technology Sector Mutual Funds?
Technology mutual funds are mutual funds that invest specifically in technology companies. These funds invest in stocks of companies that deal in technology, software, hardware, IT services, and internet-based services. If you believe in the future of technology and think that this sector will grow rapidly, then these funds may be the right choice for you.
Why Invest in Technology Mutual Funds?
1. Diversification:
Technology mutual funds give you the opportunity to invest in one sector. This diversifies your portfolio, allowing you to reduce the risk of other sectors to invest.
2. Future Sector:
The technology industry has seen unprecedented growth in the last few decades and is expected to grow even further in the future. Technology companies are moving towards new innovations and developments.
3. Better returns for the long term:
Investing in technology companies can give better returns in the long term, especially if you invest regularly through SIP.
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List of Best Technology Sector Mutual Funds 2024 –
Now we provide you with a list of the best technology mutual funds of 2024. These funds are performing well at the moment and investing in them can be profitable.
| Fund’s Name | 1 Year Return | 3 Year Return | 5 Year Return |
| ABSL Digital India Fund | 36.76% | 12.76% | 28.37% |
| Franklin India Technology Fund | 50.01% | 17.30% | 28.25% |
| ICICI Prudential Technology Fund | 43.54% | 11.94% | 28.81% |
| SBI Technology Opportunities Fund | 33.71% | 13.15% | 26.09% |
| TATA Digital India Fund | 47.88% | 13.88% | 27.88% |
The list of Best Technology Sector Mutual Funds 2024 is calculated as per various parameters –
| Fund’s Name | Portfolio P/E Ratio | Annual Turnover | No. Of Stocks |
| Aditya Birla Sun Life Digital India Fund | 34.34 | 31% | 32 |
| Franklin India Technology Fund | 44.85 | 26% | 41 |
| ICICI Prudential Technology Fund | 35.17 | 64% | 60 |
| SBI Technology Opportunities Fund | 35.29 | 51% | 24 |
| TATA Digital India Fund | 35.98 | 22% | 34 |
Market Capitalization Allocation of Best Technology Sector Mutual Funds 2024 –
| Fund’s Name | Large Cap | Mid Cap | Small Cap |
| Aditya Birla Sun Life Digital India Fund | 69% | 8% | 21% |
| Franklin India Technology Fund | 31% | 26% | 37% |
| ICICI Prudential Technology Fund | 70% | 12% | 15% |
| SBI Technology Opportunities Fund | 67% | 16% | 17% |
| TATA Digital India Fund | 72% | 12% | 15% |
Advantages and Risks of Investing in Technology Sector Mutual Funds –
SIP option – Best way for Small Investors –
If you are a small investor and want to invest regularly in technology mutual funds, then SIP (Systematic Investment Plan) is the best option for you. Through SIP, you can invest a small amount every month, which can gradually convert into large capital.
Let us know some benefits of investing through SIP –
1. Small investments:
You can start a SIP with as little as Rs 500 or even less.
2. Rupee Cost Averaging:
When investing through SIP, you get different prices for units at different times, thereby averaging out the total cost.
3. Disciplined Investing:
SIP helps you invest in a regular and disciplined manner, which can give you good returns in the long term.
Is it safe to invest in technology mutual funds?
This question often arises in the minds of investors. Although no investment is 100% safe, while investing in technology mutual funds, you should keep in mind that these funds come with high risk. Given the volatility of the technology industry, you should make a decision keeping in mind your risk tolerance and investment time horizon.
Things to keep in mind before investing in Technology Sector Mutual Funds 2024 –
1. Understand your financial position:
Before investing in any fund, keep in mind your financial situation and goals.
2. Risk Tolerance:
Technology funds can be volatile, so assess your risk tolerance.
3. Long term outlook:
Investing in technology mutual funds can be beneficial in the long term, so don’t look at it for short-term gains.
4. Performance of the Fund:
Before Investing any fund, study the past performance of fund before investing in it, but keep in mind that past performance is not a guarantee of future performance.
Conclusion –
Best technology mutual funds in 2024 can be a good option for investors who believe in the technology industry and want to get long-term benefits. However, there are risks involved, so it is important to assess your financial situation and make the right decision before investing. Through SIP, even small investors can easily invest in this sector and gradually get big returns.
FAQs
Is it safe to invest in technology sector mutual funds?
No, Technology Mutual Funds have high volatility and involve risks, hence you should invest as per your risk tolerance.
How to invest in Technology Funds through SIP?
You can start a SIP by visiting the website of any mutual fund house or with the help of your financial advisor.
What are the best technology funds in 2024?
ABSL Digital India Fund, Franklin India Technology Fund, ICICI Prudential Technology Fund, and SBI Technology Opportunities Fund are performing well in 2024.
What are the benefits of investing in technology sector funds?
High growth potential, long-term returns, and taking advantage of opportunities associated with technology innovation are the key advantages of technology sector funds.
Is SIP beneficial for small investors?
Yes, SIP helps small investors to be regular and disciplined.