LIC Mutual Fund, one of India’s leading financial institutions, has launched a new technology-focused New Fund Offer (NFO) called the LIC MF Technology Fund.
This NFO will remain open from February 20 to March 6, 2026. After the NFO period, the scheme will reopen for regular purchase and redemption on March 19, 2026.
It is an open-ended equity fund that will mainly invest in technology and technology-related companies.
Not Limited to Traditional IT Companies
A key feature of this fund is that it will not invest only in traditional IT services companies. Instead, it will invest across a wider technology ecosystem, including:
Semiconductor companies
Data center operators
Digital commerce platforms
Internet-based businesses
Emerging technology companies
The fund’s benchmark will be the BSE TECK Total Return Index, which tracks the performance of large technology-sector companies.
Investment Allocation Structure
The investment pattern of the fund is as follows:
Technology and related companies: At least 80%
Other equity, debt, or money market instruments: Up to 20%
REITs and InvITs: Up to 10%
This clearly shows that the fund’s main focus will remain on technology-driven growth.
Minimum Investment Amount
Many people think thematic funds require large investments, but this fund allows small entry amounts:
Minimum lump sum investment: ₹1,000
Daily SIP: ₹100
Monthly SIP: ₹200
Quarterly SIP: ₹1,000
This makes the fund accessible to everyone, from college students to salaried individuals.
Exit Load Rules
If you withdraw money early, the following exit load applies:
No exit load: Up to 12% withdrawal within 90 days
1% exit load: On withdrawals above 12% within 90 days
This means investors who stay invested for the long term may benefit more.
Fund Launch During the AI Era
The IT sector is currently facing pressure. Rapid progress in artificial-intelligence technologies is affecting traditional IT service companies.
For example, investors worry that AI-based tools could reduce outsourcing demand. Earlier this month, the Nifty IT Index fell to a 10-month low.
What It Means for Investors
Technology today is not limited to IT services. It now includes:
Online shopping
Cloud computing
Digital payments
Data storage
Chip manufacturing
As India and the world continue to digitalize, companies in these areas may offer strong growth opportunities.
However, investors should remember that thematic funds carry higher risk because they focus on a single sector. Such funds are more suitable for investors with a long-term outlook who can handle market fluctuations.
Always consult a financial expert before investing.
