India’s push to become a global semiconductor hub is picking up pace, with the government preparing the next phase of its chip manufacturing plan under ISM 2.0. With a much larger investment and a broader focus (from chip design to supply chains) the aim is to build a strong, self-reliant ecosystem. As this sector gains momentum and demand for chips continues to rise, many investors are turning to semiconductor and manufacturing-focused mutual funds to benefit from this long-term growth story.
| Name | Plan | AUM | CAGR 3Y (%) | Tracking Error |
| ICICI Pru Technology Fund | Growth | 12574.57 | 10.30 | 12.14 |
| Tata Digital India Fund | Growth | 9238.58 | 9.57 | 7.26 |
| Canara Rob Infrastructure Fund | Growth | 864.25 | 27.38 | 7.17 |
| Nippon India Taiwan Equity Fund | Growth | 599.16 | 67.41 | 18.71 |
| Navi Nifty India Manufacturing Index Fund | Growth | 67.24 | 23.45 | 0.16 |
This technology-focused fund invests about 98.90% in equities, with large caps making up 61.12% of the portfolio. Top holdings include Infosys (16.79%) and Bharti Airtel (12.49%). It is managed by Vaibhav Dusad and has a beta of 0.84, meaning it tends to be slightly less volatile than the broader market.
Its alpha of 6.22 indicates it has historically delivered returns higher than its benchmark. With an expense ratio of 1.03% (direct), it suits investors betting on a tech rebound.
The Tata Digital India Fund focuses on the technology sector and keeps a large portion of its portfolio (about 94.88%) in equities, with a strong tilt towards IT services (70.73%). Its top holdings include Infosys (19.58%) and TCS (12.80%). While the fund offers a relatively low expense ratio of 0.56%, its recent performance has been weak, with a -12.23% return over the past year. It is better suited for investors who are comfortable with volatility and believe in a long-term recovery in tech stocks.
The Nippon India Taiwan Equity Fund offers Indian investors exposure to Taiwan’s technology-driven economy, with a strong focus on semiconductor and electronics companies. It has delivered an impressive 227.32% return over the past year, though this comes with high volatility, reflected in its risk profile. The fund invests mainly in equities, with some allocation to cash for flexibility. Managed by Kinjal Desai and Amber Singhania, it is suited for investors seeking global diversification and willing to take on higher risk for potentially strong long-term gains.
It is a passive fund that tracks the performance of India’s manufacturing sector, covering industries like pharmaceuticals, automobiles, and metals. With a NAV of ₹19.07 and 1-year returns of 15.79%, it offers steady exposure to this growth theme. The fund stands out for its low expense ratio of 0.40% and is managed by Ashutosh Shirwaikar. Top holdings include Sun Pharma and Mahindra & Mahindra. It suits investors looking for low-cost, long-term exposure to India’s manufacturing story, while being comfortable with higher risk.
| Name | Expense Ratio | Sharpe Ratio | Exit Load | Absolute Returns - 1Y (%) |
| Nippon India Taiwan Equity Fund | 0.98 | 4.17 | 1.00 | 227.32 |
| Canara Rob Infrastructure Fund | 1.07 | 0.88 | 1.00 | 16.90 |
| Navi Nifty India Manufacturing Index Fund | 0.40 | 0.78 | 0.00 | 15.79 |
Semiconductor and technology-focused mutual funds are increasingly gaining attention as India strengthens its position in the global chip ecosystem. Funds like the Nippon India Taiwan Equity Fund highlight the high-growth potential of global semiconductor exposure, while options such as the ICICI Pru Technology Fund and Tata Digital India Fund offer more diversified tech exposure. Meanwhile, passive options like the Navi Nifty India Manufacturing Index Fund provide a low-cost way to participate in India’s manufacturing growth story.
However, these funds come with higher volatility and sector-specific risks. Investors should align their choices with their risk appetite and investment horizon, focusing on long-term potential rather than short-term performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund Investments are subject to market risks. Read all the related documents carefully before investing.
Published on: May 6, 2026, 5:30 PM IST
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