Indian IT stocks have been seeing a remarkable rally with counters in the pack hitting new highs every other day, much of the rally is also globally driven and another factor is the coronavirus led technological adoption across businesses and across industries.
And the most recent trigger is the renewed hopes on US stimulus, though latest Trump's strigent H1-B visa rules may curb the spirits of Indian techies and Indian IT tech giants. At a time when Nifty has seen 7-straight day's of gains, Nifty IT index from opening of September 30 at 19880.6 has on Friday October 9, 2020 closed at 21837.6, which is a gain of close to 10 percent.
Now this sharp jump in the IT index will also lead to a jump in technology based Indian mutual funds which have a exposure in these IT stocks:
Here is a list of top tech based mutual funds in India:
1. ICICI Prudential Technology Fund:
This fund is not rated and has offered a return of 24% per annum return. The expense ratio of the fund is 1.88 percent and the top holdings include Infosys, Bharti Airtel, TCS, Indiamart Intermesh. Sectorally, technology sector has the highest fund allocation of over 70 percent.
The fund is said to carry a high risk.
2. Aditya Birla Sun Life Digital India Fund:
This fund also garnered return of over 23% per annum and the expense ratio is 1.65 percent.Similar to the previous fund it is tilted towards technological space with major portfolio holdings in Infosys, Bharti Airtel, Tech Mahindra, HCL Technologies.
3. Franklin India Technology Fund:
The returns have been over 21% and the expense ratio charged is 1.57%. Top stock holdings include Infosys, TCS, Franklin Technology Fund, HCL among others.
4. SBI Technology Opportunities Fund
The returns from the fund are to the tune of 20.75 percent and expense ratio is at 1.75 percent. Top holdings of the fund are TCS, Infosys, Tech Mahindra, HCL.