As technology advances and digitalisation spreads across sectors, the demand for semiconductor products has surged, making mutual funds investing in semiconductor stocks an increasingly attractive choice for investors. These small yet powerful chips play a vital role in everything from consumer electronics to industrial machinery, fueling demand and growth across the semiconductor landscape. India’s semiconductor ecosystem is also experiencing substantial momentum, with several landmark projects gaining approval.
The first major project, led by Micron, secured an investment of nearly ₹22,000 crore, while Tata’s joint venture with Taiwan’s Powerchip in Dholera stands out as another significant milestone. 5 ambitious projects are in progress, bringing a combined investment of close to ₹1.52 lakh crore and setting the stage for robust growth in India’s semiconductor industry. In this article, we’ll explore the best semiconductor mutual funds in India in November 2024, based on 3-year CAGR.
| Name | AUM (₹ in Crore) | 3Y CAGR (%) | Expense Ratio (%) |
| Taurus ELSS Tax Saver Fund | 79.74 | 17.5 | 1.95 |
| Tata Digital India Fund | 12,052.06 | 12.47 | 0.35 |
| Aditya Birla SL Digital India Fund | 5,046.46 | 11.01 | 0.75 |
| ICICI Pru Technology Fund | 13,495.32 | 9.49 | 0.98 |
Note: The top 4 semiconductor mutual funds list in India in November here is sorted as per the 3-yr CAGR as of November 11, 2024.
The Taurus ELSS Tax Saver Fund provides investors with a way to combine tax savings with potential long-term growth. It invests in equity and equity-related instruments with the goal of capital appreciation over time. The Taurus Mutual Fund portfolio includes top semiconductor-related stocks such as Havells India Ltd, Bharat Electronics Ltd, and HCL Technologies Ltd.
As of August 31, 2024, the fund’s portfolio includes 19.55% investment in the banking sector and 18.40% in the IT sector.
ELSS funds have a 3-year lock-in period, which encourages long-term investing while offering the benefit of market-linked returns.
Key metrics:
The scheme is an open-ended equity fund focused on investing in the Information Technology sector in India. Its investment objective is to achieve long-term capital appreciation by allocating at least 80% of its net assets in equity and equity-related instruments of companies within the IT sector, including IT services, consulting, outsourcing companies, and IT hardware and software companies.
The Tata Digital India Fund portfolio includes leading semiconductor and technology-related stocks such as HCL Technologies Ltd, Persistent Systems, ABB India, and KPIT Technologies Ltd.
Key metrics:
The Aditya Birla SL Digital India Fund aims to generate long-term capital growth by investing primarily in technology and technology-dependent companies. With a target allocation of 100% equity, the fund focuses on sectors such as hardware, peripherals, software, telecom, media, internet, e-commerce, and other technology-enabled businesses. Additionally, the scheme seeks to provide income generation through the distribution of IDCW (Income Distribution and Capital Withdrawal).
The fund aims to allocate at least 80% of its assets to equity and equity-related instruments of technology companies, while it may also invest up to 20% in debt and money market instruments for liquidity management.
The Aditya Birla Sun Life Digital India Fund portfolio includes prominent technology and semiconductor-related stocks such as HCL Technologies Ltd., Persistent Systems Ltd., KPIT Technologies Ltd., and Tanla Platforms Ltd.
Key metrics:
The ICICI Pru Technology Fund primarily focuses on equity investments, with a significant portion of its portfolio allocated to technology-related sectors. As of November 11, 2024, the majority of the fund’s assets, approximately 94.69%, are invested in equities. This allocation highlights the fund’s strong focus on technology stocks. It also maintains smaller allocations in debt, foreign equities, and derivatives to ensure liquidity and manage risk.
The ICICI Pru Technology Fund portfolio includes key technology and semiconductor-related stocks such as HCL Technologies, Persistent Systems, KPIT Technologies, and Mastek.
Key metrics:
In addition to the above, there is the NJ ELSS Tax Saver Scheme that was launched on June 16, 2023. This is an equity fund that offers tax benefits. The fund currently has an AUM of ₹251.17 crore. The portfolio is diversified across various sectors, with significant allocations in Pharmaceuticals & Drugs (20.68%), Household & Personal Products (12.08%), IT – Software (8.20%), and Hospital & Healthcare Services (7.92%).
The NJ ELSS Tax Saver Scheme also has investments in key semiconductor and technology-related stocks, including Havells India Limited and Persistent Systems.
Key metrics:
Investing in semiconductor mutual funds can offer exciting opportunities but comes with its own set of risks. Investors must consider their own risk tolerance, financial goals, and time horizon before making any investment decisions. Consulting a financial advisor can provide valuable insights and help tailor an investment strategy that aligns with individual objectives and risk management needs, ensuring a well-informed approach to navigating the semiconductor sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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