Technology mutual funds delivered an average 6.29% return in October 2026, while no other equity mutual fund category crossed 1%. HDFC Technology Fund led the 13 scheme…
Technology funds outperform in October
Technology-focused equity mutual funds were the standout category in October 2026, posting an average return of 6.29%. No other equity mutual fund category managed to cross the 1% mark during the same month, according to data attributed to Value Research. The category comprises 13 schemes, and performance across them varied widely.
HDFC Technology Fund recorded the highest return at 11.54%, with assets under management of ₹1,371 crore as of 1 November 2026. Kotak Technology Fund followed at 8.86% with an AUM of ₹479 crore, while ICICI Prudential Technology Fund gained 8.22% and held the largest asset base in the category at ₹12,505 crore.
Tata Digital India Fund and SBI Technology Opportunities Fund returned 7.99% and 7.91% respectively, with AUMs of ₹9,276 crore and ₹4,155 crore. Franklin India Technology Fund gained 7.65% on an AUM of ₹1,623 crore. WhiteOak Capital Digital Bharat Fund returned 7.03% and Invesco India Technology Fund 6.68%, with assets of ₹510 crore and ₹317 crore. Aditya Birla Sun Life Digital India Fund posted 6.51% on an AUM of ₹3,617 crore.
The divergence within the category was notable. Motilal Oswal Digital India Fund was the sole scheme to end the month in negative territory, declining 2.72%. Quant Teck Fund delivered a comparatively modest 1.67%.
Why this matters for businesses
Sectoral funds such as these concentrate holdings in technology-related companies, which means returns are tied closely to a single industry's fortunes. For corporate treasuries, promoter entities and other institutional investors evaluating mutual fund allocations, a single month of outsized performance can distort comparisons against diversified equity categories. The data also indicates that a larger asset base did not guarantee superior monthly returns, since the top performer held a smaller AUM than several peers.
What to watch next
Technology fund returns are sensitive to global IT spending cycles, software service…
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