5 Top Performing Technology Mutual Funds to invest in 2019

Top Performing Technology Mutual Funds for 2019


Stock markets are falling day by day. Most of the stocks and mutual funds have shown negative signs in this bear market in the last 3 months. However, one of the category of mutual funds that are positive is Technology Funds. Technology Mutual Funds had a limited downside now even when SENSEX has fallen 3,000 points from its peak in the last few weeks. With growing interest and positive signs, technology mutual funds are expected to perform well in the last 2-3 years. Which are the top performing Technology mutual funds to invest in 2019? Which are the best technology mutual funds that you can bet from such downside in 2019?

Also Read: Best International Mutual Funds that are not impacted with Stock Market volatality

How we filtered these Top Performing Technology Mutual Funds for 2019?


We have filtered these top performing tech funds based on these parameters.

1) Mutual Fund schemes from technology Sector only are considered here.

2) Funds that have performed well in the last 1 year have been picked up here. Since the rally is there in the last few months, we picked up last 1 year performance as a basis. We have also checked whether these have shown good performance in the last 3 months and 1 month as most of the bear market started in the last 6-8 weeks.

3) Funds are filtered irrespective of the size of assets under management (AUM). This means, even < 100 Crore AUM funds are filtered.

4) Some of these funds could be repetitive from our earlier recommendations; hence if you are investing in them, you can continue to invest.

Who can invest in Technology Mutual Funds?


Technology funds are sector funds that are high risk. If you have a high risk appetite, aiming to get superior returns and willing to invest a lump sum or through SIP you can invest in these funds. If you are moderate or low risk taker, you should STAY AWAY from these mutual funds. In such case you can go for equity mutual funds.

5 Top Performing Technology Mutual Funds to invest in 2019


Top#1 – ICICI Prudential Technology Fund


About the Fund: This fund aims for long term capital appreciation by investing in equity and equity related securities of technology and technology dependent companies.

Performance: This fund gave 11% returns in the last 3 months in spite of the bear market and shown 1.7% negative returns in the last 1 month where major correction has happened.

This fund gave 50% returns in the last 1 year, 12% annualized returns in last 3 years and 19% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.5 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.4 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.4 Lakhs.

One negative point is that it has high expense ratio of 2.88%

Our View: I have recommended this fund as part of Best Sector Mutual Funds for 2018 and top technology funds list 6 months back. This fund is a consistent performer in the last few years. This is one of the best technology mutual funds to invest in 2019.

Top#2 – Tata Digital India Fund


About the Fund: The mutual fund scheme seeks long term capital appreciation by investing at least 80% of its assets in equity and equity related instruments of the companies in Information Technology Sector in India.

Performance: This fund gave 8% returns in the last 3 months in spite of the bear market and shown 4% negative returns in the last 1 month where major correction has happened.

This is a relatively new fund that came in < 3 years. This fund gave 57% returns in the last 1 year.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.6 Lakhs.

One negative point is that it has high expense ratio of 2.68%

Our View: Though relative new fund, this fund proved its performance in the last 2.5 years. One can review and invest in such new funds too.

Top#3 – Aditya Birla Sun Life Digital India Funds


About the Fund: This mutual fund aims capital appreciation with focus on technology and technology dependent companies. The scheme will follow a bottom-up approach to stock picking, adopting a blend of value and growth style of investing.

Performance: This fund gave 6% returns in the last 3 months in spite of the bear market and shown 6% negative returns in the last 1 month where major correction has happened.

This fund gave 42% returns in the last 1 year, 13% annualized returns in last 3 years and 17% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.4 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.2 Lakhs.

One negative point is that it has high expense ratio of 2.9%

Our View: Even this fund was recommended earlier as part of technology funds to be invested in 2018. This is one of the top technology funds to invest in 2019.

Top#4 – SBI Technology Opportunities Fund


About the Fund: The mutual fund scheme seeks to provide maximum growth opportunities through investments in IT stocks.

Performance: This fund gave 4% returns in the last 3 months in spite of the bear market and shown 4% negative returns in the last 1 month where major correction has happened.

This fund gave 41% returns in the last 1 year, 10% annualized returns in last 3 years and 15% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.4 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.3 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.1 Lakhs.

One negative point is that it has high expense ratio of 3.17%

Our View: Even this fund was recommended earlier as part of sector funds. This is one of best technology funds for 2019.

Top#5 – Franklin India Technology Fund


About the Fund: This MF aims for capital appreciation through investments in high quality, fast growing companies in the information technology sector. This fund will also follow a bottom-up approach to stock pricing.

Performance: This fund gave 5% returns in the last 3 months in spite of the bear market and shown 3% negative returns in the last 1 month where major correction has happened.

This fund gave 34% returns in the last 1 year, 10% annualized returns in last 3 years and 14% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.3 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.3 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 1.9 Lakhs.

One negative point is that it has high expense ratio of 2.7%

Our View: Though relative new fund, this fund proved its performance in the last 2.5 years. One can review and invest in such new funds too.

Also Read: Top Goal Based Mutual Fund Schemes – Should you opt them?

Here is the summary of Top Performing Technology Mutual Funds for 2019


List of Top Performing Mutual Funds for 2019

Conclusion: Technology Stocks are rallying now. As indicated in our earlier articles, sector mutual funds would perform extremely well only during particular market cycles. You can continue to invest in such mutual funds for 2-3 years before they take correction. These are not for long term investment.

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Suresh

5 Top Performing Technology Mutual Funds to invest in 2019

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