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| Name of the scheme | 1-year back | Invest now | Fund category | expense ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest now | Equity: Big Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest now | Equity: Big Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest now | Equity: Big Cap | 0.25% |
| Axis Nifty 500 Index Fund | , | Invest now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest now | Equity: Mid Cap | 0.28% |
Indian IT mutual funds, which mainly invest in technical companies, have managed to navigate a challenging macro environment.
Shibani Sirkar Kurien, Executive Vice President and head of research at Kotak Mahindra Asset Management Company (AMC), believes that the long -term relevance of the region is running this flexibility.
“Technology requirement is universal in businesses. Even when the field faces uncertainty due to tariffs and business issues, we see the demand of digital services as long -term and structural,” she notes.
Here is a look at the returns of some IT funds:
| Fund name | 1 Y. Return (%) |
| HDFC Technology Dyer | 14.24% |
| Edelvis Technology Dyer | 6.70% |
| HDFC Nifty India Digital Index Dyer | , |
| ABSL NIFTY it ETF | 4.22% |
| Axis nifty it etf | 4.21% |
| Hdfc nifty it etf | 4.26% |
| DSP Nifty This ETF | 4.27% |
| Bandhan Nifty It Index Dyer | 4.17% |
| Axis Nifty It Index Dirt | 4.03% |
| Absal Digital India Dirt | 4.00% |
| Franklin India Technology Dirt | 3.24% |
,Source: Price Research)
Historically, the IT region has been stable in addition to major global recession such as 2000–01, 2008–09 and 2020–21.
Outside those periods, the increase in IT services has been consistent.
Kurien explains that most of the sector companies generate free cash flows, make a healthy return to equity (ROE), and provide attractive dividend yields.
These fundamental markets act as a pillow during the recession, which support the evaluation.
Speed to continue?
While close-term predictions are uncertain, Kurien says Indian IT firms are relatively well placed over the long term. However, this region is not immune for global risks.
Major factors for monitoring include:
- The severity of tariffs and counselors by the US and other countries.
- Global Consumer and Professional Affairs.
- US Dollar Index (DXY).
- Geophysical development, especially Russia -Ukraine conflict.
- US GDP growth, which increases discretionary technical expenses.
Says Kurian, “Verticals like BFSI, Retail, High-Tech and Manufacturing will be important. They should be tracked the possibility of revenue risk and income modification. It has been said, when development returns, rebounds may intensify in demand for IT services.”
AI, cloud to run the next stage
In terms of future development themes, Kurien Artificial Intelligence (AI) indicates generic AI and cloud migration as major structural drivers.
“To adopt AI on a scale, the enterprises need to move and streamline large versions of data through the first cloud,” she explains. “So, AI adoption and cloud integration would be long -term development liver, like digital changes a few years ago.”
Should retail investors consider IT funds?
Kurien recommends that the regional funds should ideally be part of a diverse investment strategy and not a standalone condition.
“For investors already conduct diverse equity funds, this fund may offer risk for a region with long -term capacity. But it must be aligned with their risk hunger and goals,” she says.
She emphasizes the need for a long -term approach. “Technology is a structural story. Investors should come with at least five years of minimum time horizon.”
For retail investors to plan to launch a systematic investment plan (SIP) in IT funds, Kurian suggests a disciplined long -term strategy.
“Given the inherent instability, the sip in the IT funds should be made with a horizon of over five years to ride through cycles and benefit from the compound.”
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