LIC Mutual Fund, one of India’s leading financial institutions, has launched a new technology-themed New Fund Offer (NFO) called the LIC MF Technology Fund.
The NFO will remain open from February 20 to March 6, 2026. After that, the scheme will reopen for regular purchase and redemption from March 19, 2026.
This is an open-ended equity fund that will mainly invest in technology and technology-related companies.
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Investment Focus: Not Just Traditional IT Companies
A key feature of this fund is that it is not limited to traditional IT services companies. It will invest in a wide range of technology-driven businesses, 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 Structure of the Fund
Here is how the fund plans to allocate its investments:
Technology and related companies: At least 80%
Other Equity/Debt/Money Market instruments: Maximum 20%
REITs and InvITs: Up to 10%
This clearly shows that the main focus of the fund will remain on technology growth.
Minimum Investment Amount
Many people believe that thematic funds require a large investment, but this fund allows investors to start with a small amount:
Minimum lump sum investment: ₹1,000
Daily SIP: ₹100
Monthly SIP: ₹200
Quarterly SIP: ₹1,000
This means college students, salaried individuals, and small investors can also invest in this fund.
Exit Load Rules
If you withdraw your money early, the following rules will apply:
No exit load on withdrawals up to 12% within 90 days
1% exit load on withdrawals above 12% within 90 days
This means the fund is more suitable for investors who plan to stay invested for the long term.
Launch During the AI Era
The IT sector is currently facing pressure. Rapid growth in artificial intelligence (AI) technologies is affecting traditional IT service companies.
For example, there are concerns that AI tools may impact the outsourcing business. Recently, the Nifty IT Index touched a 10-month low.
What Does This Mean for Investors?
Today, technology is not limited to IT services. It includes:
Online shopping
Cloud computing
Digital payments
Data storage
Chip manufacturing
As India and the world continue to digitize, companies in these sectors may offer strong growth opportunities.
However, thematic funds carry higher risk because they focus on a single sector. These funds are more suitable for long-term investors who can handle market ups and downs. It is always advisable to consult a financial expert before investing.