The semiconductor ecosystem continues to play an important role in global technology development, supporting areas such as information technology services, electronics manufacturing, digital platforms and data infrastructure.
While India does not currently have dedicated semiconductor-focused mutual funds, several technology-oriented equity schemes offer indirect exposure to the semiconductor value chain through investments in IT services, digital businesses and technology-dependent companies.
This article highlights the best semiconductor-linked mutual funds in India for February 2026 based on their 3-year CAGR.
| Fund Name | 3Y CAGR (%) |
| Franklin India Technology Fund | 20.06 |
| Tata Digital India Fund | 13.39 |
| ICICI Prudential Technology Fund | 13.37 |
| Aditya Birla SL Digital India Fund | 12.98 |
| Kotak Technology Fund | — |
Note: Funds are ranked based on 3-year CAGR as of February 6, 2026.
This fund focuses on investments in information technology companies and related businesses.
It follows a bottom-up approach to stock selection and aims to invest in companies with scalable growth potential within the technology ecosystem.
Key Metrics:
A sector-focused scheme that invests predominantly in Indian information technology companies. The fund aims to allocate at least 80% of its assets to equity and equity-related instruments within the technology sector.
Key Metrics:
This fund seeks long-term capital appreciation by investing in technology and technology-dependent companies. A significant portion of the portfolio is aligned with benchmark constituents, with flexibility to invest across the broader IT services space.
Key Metrics:
The fund focuses on digital and technology-oriented companies, adopting a blend of value and growth investing styles. It follows a bottom-up stock selection approach across technology-driven sectors.
Key Metrics:
Kotak Technology Fund invests primarily in equity and equity-related securities of technology and technology-linked sectors. The scheme aims to generate long-term capital appreciation through sector-focused exposure.
Key Metrics:
Lower expense ratios can influence long-term returns. Below are semiconductor-linked funds ranked by expense ratio.
| Fund Name | Expense Ratio (%) |
| Tata Digital India Fund | 0.43 |
| Aditya Birla SL Digital India Fund | 0.79 |
| Kotak Technology Fund | 0.88 |
| ICICI Prudential Technology Fund | 0.99 |
| Franklin India Technology Fund | 1.03 |
Note: Expense ratios are as of February 6, 2026.
Read More: Best Dividend-Paying Stocks in February 2026: Vedanta, Coal India, REC, ITC, and More.
Although India does not yet offer dedicated semiconductor mutual funds, investors can gain indirect exposure through technology-focused equity schemes. Performance differs across funds based on investment approach, cost structure and time horizon. Investors should evaluate their financial goals, risk tolerance and portfolio allocation before considering sector-linked investments.
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 in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 6, 2026, 10:09 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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