A sector well off its high
The Nifty IT closed at 29,021.10 on Thursday, 21 May 2026. That is 36.90% below its record of 45,995.80, set on 13 December 2024, and 23.39% down since the start of 2026. Its lowest close of the year so far was 27,360.35, on 14 May.
Technology funds have fallen too, but by much less. In the year to 21 May the median technology fund lost 11.57%. The Nifty IT lost 20.25% by our estimate of its total return, and the five Nifty IT index funds with a one-year record lost about 21% each.
The group here is the actively managed sector funds with "technology", "digital" or "teck" in their names: 13 funds, one of them launched in March. Eleven funds named for "innovation" follow a broader theme and are left out. All figures are for the Direct plan, Growth option, from daily NAVs to 21 May 2026.
Every fund, ranked by its one-year return
| Fund (Direct, Growth) | 2026 so far | 1 year | 3 years, a year | Below its peak |
|---|---|---|---|---|
| Edelweiss Technology | −4.59% | 6.90% | −6.22% | |
| Invesco India Technology | −7.43% | 1.19% | −14.38% | |
| WhiteOak Capital Digital Bharat | −14.73% | −6.25% | −17.30% | |
| Franklin India Technology | −16.61% | −8.69% | 15.15% | −20.10% |
| SBI Technology Opportunities | −18.39% | −10.39% | 11.11% | −20.37% |
| Motilal Oswal Digital India | −16.33% | −10.73% | −19.46% | |
| Aditya Birla Sun Life Digital India | −18.13% | −12.41% | 7.92% | −25.69% |
| ICICI Prudential Technology | −19.05% | −12.77% | 9.73% | −24.04% |
| Kotak Technology | −18.39% | −12.96% | −25.13% | |
| quant Teck | −7.34% | −15.70% | −24.32% | |
| Tata Digital India | −20.10% | −16.04% | 8.57% | −30.33% |
| HDFC Technology | −20.83% | −17.73% | −27.06% | |
| ICICI Prudential Nifty IT Index | −23.48% | −21.04% | 2.61% | −35.14% |
The index fund in the last row is there for comparison. Every active fund lost less than it over the year and over 2026 so far.
quant Teck stands apart in the short term. It rose 9.53% over the past month, while the median fund lost 2.86% and the Nifty IT 8.26%.
Against the Nifty IT, period by period
We don't hold NSE's official total return index, so the index column adds the Nifty IT's daily dividend yield to its price.
| To 21 May 2026 | Funds counted | Median fund | Nifty IT (est. total return) | Funds ahead of it |
|---|---|---|---|---|
| 2026 so far | 12 | −17.37% | −22.40% | 12 |
| 1 year | 12 | −11.57% | −20.25% | 12 |
| 3 years, a year | 5 | 9.73% | 3.45% | 5 |
| 5 years, a year | 5 | 9.37% | 4.53% | 5 |
| 10 years, a year | 5 | 16.19% | 12.52% | 5 |
The five older funds have beaten the index in every window. Over three years, two of them also beat our estimate of the Nifty 50's total return, 10.55% a year: Franklin India Technology at 15.15% and SBI Technology Opportunities at 11.11%. The other three did not.
Cheap against its own recent history
The Nifty IT's P/E closed at 19.75 on 21 May. Since 31 March 2021, when NSE moved its P/E figures to consolidated earnings, only six trading days have closed lower, and all six were in May 2026. The low was 18.58 on 14 May. The median since 2021 is 27.79.
What this does not tell you
A narrow group. Thirteen funds, five with a three-year record, make a thin sample. A median of five is just the middle fund.
Losing less is still losing. Most of these funds are down for the year. Beating a falling index is not the same as making money.
A low P/E is not a forecast. A cheap ratio can get cheaper if prices keep falling or earnings shrink. Nothing in this post is advice to buy or sell any fund.
Where to go from here
The sectoral and thematic fund page lists every sector fund, and sectoral and thematic funds explains the risks of putting money in one sector. The Nifty IT index funds are on the index fund page.
For the index's valuation earlier in the year, see the Nifty IT P/E in March. For another sector set against its index, see banking and financial services funds.
Frequently asked questions
How have technology mutual funds performed in the last year?
In the year to 21 May 2026 the median actively managed technology fund (Direct plan, Growth option) lost 11.57%, across 12 funds. The best, Edelweiss Technology, gained 6.90% and the worst, HDFC Technology, lost 17.73%. The Nifty IT index funds lost about 21%.
How far has the Nifty IT fallen?
The Nifty IT closed at 29,021.10 on 21 May 2026, 36.90% below its record close of 45,995.80 on 13 December 2024 and 26.51% below its 52-week high of 39,488 on 22 December 2025. It was down 23.39% for 2026 on price.
Have technology funds beaten the Nifty IT over the long run?
The five with a three-year record all did, to 21 May 2026. Their three-year returns ranged from 7.92% to 15.15% a year, against our estimate of 3.45% a year for the Nifty IT's total return. Over ten years they returned 15.62% to 16.37% a year, against an estimated 12.52%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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