A New Fund to Invest in IT Company Stocks!

“India’s IT sector continues to grow. But which IT company stock should I buy?” Arun asked his friend.

“Instead of selecting just one company, why not invest in several companies across the sector at the same time?” his friend replied.

Arun found the idea reassuring. After all, investing across several companies in a sector can be a different approach from depending entirely on the performance of a single company.

Offering such an investment opportunity, Mirae Asset BSE Information Technology Index Fund has been launched. It is an open-ended equity index fund that seeks to replicate the performance of the BSE Information Technology Total Return Index.

Investing in the IT Sector Through a Single Fund

The primary objective of the fund is to invest in the stocks forming part of the BSE Information Technology Index in proportions that are as close as possible to their respective weights in the index.

This means investors do not have to independently identify and purchase several individual IT company stocks. Through a single fund, they can gain exposure to a basket of companies represented in the underlying index.

The index covers various segments of the information technology industry, including software and consulting services, IT-enabled services, software products, computer hardware and equipment.

According to Mirae Asset, the BSE Information Technology Index selects companies from the BSE AllCap universe.

Large, Mid and Small IT Companies

Another feature of the index is that it provides exposure not only to large IT companies but also to mid-sized and smaller companies.

As of August 31, 2026, large-cap companies accounted for around 72% of the index, while mid-cap and small-cap companies together accounted for around 28%, according to Mirae Asset.

This gives investors exposure to established IT companies as well as other companies that may have growth potential.

What Does an Index Fund Mean?

This is not an actively managed fund. In other words, the fund manager does not primarily attempt to identify individual stocks that are expected to outperform the market and make discretionary investments based on such predictions.

Instead, the fund seeks to follow the stocks included in the underlying index according to the index methodology.

As a result, the fund's performance is expected to closely track the performance of the BSE Information Technology Total Return Index. However, the fund's returns may differ from those of the index. This difference is known as tracking difference.

Expenses, cash holdings, transaction costs and other factors can contribute to this difference. The fund's objective is to replicate the index's performance before expenses, but there is no guarantee that it will do so perfectly.

Key Details

Particulars	Details
Fund Name	Mirae Asset BSE Information Technology Index Fund
Fund Type	Open-ended Equity Index Fund
Benchmark Index	BSE Information Technology Total Return Index
NFO Closing Date	September 22, 2026
Ongoing Purchase/Investment	From September 28, 2026
Minimum Investment	₹5,000
Investment Horizon	5 years or more
Fund Managers	Ritesh Patel and Akshay Udeshi

Is IT Sector Growth Alone Enough?

Even if the IT sector performs well, it does not mean that the stocks of all companies in the sector will rise at the same pace or at the same time.

Several factors can influence the performance of IT companies. These include global economic conditions, the business environment in the US and European markets, technology spending, the growth of artificial intelligence, corporate revenues, employee costs and currency movements.

Moreover, since this fund focuses specifically on the IT sector, it can carry higher sector concentration risk compared with a broad-market index fund.

Who May Consider This Fund?

Investors who want long-term exposure to the IT sector may consider this type of fund as a part of their overall investment portfolio.

It may particularly appeal to investors who prefer gaining exposure to a basket of IT companies through an index rather than selecting individual IT stocks themselves.

However, this is a sector-focused equity investment, and therefore the fund may experience significant volatility over shorter periods. The scheme details indicate an investment horizon of at least five years or more.

Therefore, investors should not make a decision merely on the assumption that “the IT sector is growing, so I should invest immediately.” They should also consider their financial goals, investment horizon, risk tolerance and the existing exposure to the IT sector in their overall portfolio.

Investing in a particular sector means accepting not only the opportunity for growth in that sector, but also the possibility of a decline. Investors should keep this in mind when considering this new fund.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.