The number
Nine of the 11 technology and digital funds with a one-year record lost money in the year to 1 October 2026. The median fell 8.19%. Only Edelweiss Technology (+6.42%) and Motilal Oswal Digital India (+3.53%) gained.
The contrast with the same date's pharma and healthcare funds is sharp: every one of those 17 funds was up, with a median of 17.50%.
All figures are for the Direct plan, Growth option, computed from daily NAVs to 1 October 2026. Returns of a year or more are compounded annual rates. We counted funds whose names say technology or digital; funds called "Innovation" are listed separately below, because they hold a broader mix.
The ranking
| Fund (Direct, Growth) | 1 year | 3 years | 5 years | Worst 3-yr fall |
|---|---|---|---|---|
| Edelweiss Technology | 6.42% | |||
| Motilal Oswal Digital India | 3.53% | |||
| Invesco India Technology | -0.31% | |||
| WhiteOak Capital Digital Bharat | -3.65% | |||
| Aditya Birla Sun Life Digital India | -7.26% | 3.41% | 3.19% | 30.6% |
| Kotak Technology | -8.19% | |||
| SBI Technology Opportunities | -8.50% | 7.52% | 6.20% | 24.2% |
| ICICI Prudential Technology | -9.97% | 4.52% | 2.43% | 28.0% |
| Franklin India Technology | -10.62% | 7.76% | 6.33% | 24.8% |
| HDFC Technology | -12.51% | 5.17% | 30.6% | |
| Tata Digital India | -12.78% | 3.58% | 2.40% | 33.3% |
Several of these funds are new: only six have a three-year record and five have five years. The older ones tell the longer story.
What the longer record says
The six funds with three years returned a median of about 4.85% a year; the five with five years, 3.19% a year. That is below the 6.5% risk-free rate we use for our Sharpe ratios, and well below what diversified equity funds returned over the same windows (for instance 11.90% for large & mid-cap funds over three years, see this update).
The older funds were also the most volatile and the most exposed to falls. The three-year volatility of the 11 funds ranges from 14.9% to 21.8%, and the six older funds had worst three-year falls between 24.2% and 33.3% (Tata Digital India).
The innovation funds
Funds named "Innovation" have a broader label than technology, so they are shown separately. Ten have a one-year record, and their median is 8.78%:
| Fund (Direct, Growth) | 1 year | 3 years |
|---|---|---|
| Bandhan Innovation | 16.96% | |
| Axis Innovation | 15.37% | 18.24% |
| HDFC Innovation | 14.50% | |
| Motilal Oswal Innovation Opportunities | 12.76% | |
| Baroda BNP Paribas Innovation | 9.02% | |
| Union Innovation & Opportunities | 8.54% | 17.58% |
| ICICI Prudential Innovation | 1.05% | 17.36% |
| Tata India Innovation | 0.81% | |
| Nippon India Innovation | -0.81% | 12.93% |
| UTI Innovation | -5.58% | 3.89% |
The 17-point gap between the two groups' medians (8.78% against -8.19%) shows that the label on a fund matters: two funds that both sound like "tech" can behave very differently.
Reading this
This is what a bad year for one sector looks like in fund returns: broad falls, with only the newest funds in the black. The five-year figures rest on just five funds, so the median is sensitive to timing as well as to the sector.
To see how much of the IT sector funds actually hold, see IT stocks in mutual fund portfolios. To compare funds of any kind, use the screener.
Returns are historical and computed from NAVs; they are not a forecast. Past returns do not indicate future performance.
Frequently asked questions
How have technology funds performed over the last year?
Of the 11 technology and digital funds (Direct plan, Growth option) with a one-year record, 9 lost money in the year to 1 October 2026. The median fell 8.19%; Edelweiss Technology (+6.42%) and Motilal Oswal Digital India (+3.53%) were the only gainers.
What is the five-year return of technology funds?
The median across the 5 funds with a five-year record was 3.19% a year, from 2.40% (Tata Digital India) to 6.33% (Franklin India Technology).
How do innovation funds compare with pure technology funds?
Innovation-themed funds hold a broader mix. The median of 10 such funds with a one-year record was 8.78%, against -8.19% for the technology and digital funds.
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.
Keep reading
Pharma and healthcare funds: all 17 are up over the year
All 17 pharma and healthcare funds with a one-year record gained in the year to 1 October 2026; the median made 17.50%. Best, worst, 3 and 5-year returns.
Sectoral and thematic funds: reward, risk or marketing?
Over three years to October 2026, sector fund returns ran from −4.4% to 36% a year. Pharma funds led at a 20.8% median; technology trailed at 4.9%.
Consumption funds in September 2026: a weak year
The median consumption fund lost 4.22% in the year to 7 September 2026, against 5.60% for the Nifty India Consumption. Over three years only 2 of 13 beat it.