LIC MF Technology Fund: Create wealth by riding the Technology, Internet, Data Centre and Ecommerce (TIDE) wave

The Top 6 companies in S&P 500 index are all technology companies. Technology in India is scaling up on multiple fronts, from payments and e-commerce to cloud, SaaS and digital entertainment, creating a broad universe of listed and emerging players. It has transformed into a core growth engine of the economy, reshaping how citizens live, transact and work. Technology's influence has moved past core IT functions. It has moved to be core lifestyle. Technology as a sector has the second highest weight in the Nifty 50 Index after financial services (source: NSE, as on 31^st January 2026).

LIC has launched a New Fund Offer (NFO), LIC MF Technology Fund. The fund will invest in the companies involved in the technology space, primarily focusing enterprise technology, internet / digital internet, data centres and e-commerce companies. The NFO has opened for subscription on 20^th February 2026 and will close on 6^th March 2026. In this article, we will review LIC MF Technology Fund.

Current market scenario

Equity market is facing headwinds due to geo-political uncertainties, uncertainty about Fed's policies and fears of Artificial Intelligence (AI) led disruptions. While the market has recovered from March 2025 lows, we are seeing profit booking at higher levels. Earlier too, multiple global events have taken place, where the future of the Indian markets particularly the exports related share were under question. Indian IT companies have weathered this, and their export size has increased to over US$ 225 Billion, and the market share has expanded from ~3.5% in FY05 to 19.2% by FY25.

Source- NASSCOM; E - Estimates, AI - Artificial Intelligence; GFC - Global Financial Crisis.

About BSE TECk TRI: The Benchmark index for Technology Sector

The BSE TECk TRI index comprises constituents of BSE 500 that are classified as members of the media and publishing, information technology and telecommunications sector as defined by the BSE industry classification system. As on January 30^th, 2026, the Large Cap biased index constituted of 87.21% into the large cap companies, and 7.36% and 5.43% into the midcap and small cap, respectively.

Source: BSE Indices; Data as on 30^th Jan 2026

Why invest in the Technology Sector?

• BSE TECk TRI, the benchmark for the Technology sector has outperformed BSE 500 TRI in 11 out of last 18 fiscal years.
  
  

  

  Source: MFI 360; Data as on 30^th January 2026.FY-Financial Year returns. *FY26: data till 30^th Jan 2026. Returns are CAGR, for periods less than 1 year the returns are Absolute.



• There are high correlation of IT services revenue growth and the US Industrial production growth. US industrial production is seeing a strong recovery.
  
  

  

  Source-Bloomberg BNP Paribas Equity research, as of latest available data



• US nominal GDP growth slowdown appears to have bottomed out with a strong acceleration in Sep'25 quarter
  
  

  

  Source-Bloomberg BNP Paribas Equity research, as of latest available data



• E- Commerce constitutes of nearly half of India's overall consumer internet market and has demonstrated the highest channel growth signalling changing consumer behaviour.
  
  

  

  Source-Jeffries report dated 13^th Jan 2026. E-Estimates B&M:Brick-and-Mortari.e.,physical retail stores



• India's digital economy is expected to triple to ~$ 1.3 trillion by CY30E at ~16.6% CAGR
  
  

  

  Source- Jeffries report dated 13 Jan 2026



• Data usage has soared due to falling prices, post- demonetisation digital payments, and telecom giant rollout in 2016. Similarly Generative AI has opened up a world of possibilities, resulting in a significant surge in computer usage across multiple applications. Rising data needs have let to hyperscale DC construction, with occupiers, adopting hybrid and multiple clous models. Allied services that support the data centres are most crucial for maintaining the operations of these centres and is also growing at great pace.

LIC MF Technology Fund

The LIC MF Technology Fund is an open-ended equity Thematic scheme, with an objective of long-term capital appreciation by investing in technology and technology-related companies. The fund is managed by Mr. Karan Doshi and Mr Jaiprakash Toshniwal.

Portfolio Construction Process of the LIC MF Technology Fund

The fund managers employ a T.I.D.E framework (Technology, Internet and Digital Internet, Data Centres and E-Commerce) (See illustration below) which helps find out investment opportunities in the mentioned space to provide potential long term wealth creation for investors.

The portfolio construction process considers parameters like

1. Management & Governance Quality


2. Business Competitiveness & Track Record


3. Growth Potential & Valuation Comfort


4. Moat/Uniqueness in Business


5. Innovation: New Categories, New Product launches, or new delivery platforms
   
   

   

Asset Allocation

Why invest in LIC MF Technology Fund?

• The LIC MF Technology Fund intends to invest in companies in the Technology theme which is a core driver of long-term economic growth across all industries


• Exposure to multiple companies engaged in platform businesses, cloud infrastructure, data centres and automation.


• T.I.D.E. Framework helps to identify diversified businesses which are expected to benefit from Technological advancement


• Companies with scalable business models which could be potential contributors to India's journey towards Viksit Bharat


• Market cap agnostic fund providing exposure to innovative companies while managing risk.

Why invest in Technology Fund now?

• Multiple modern technologies like digital, cloud and Gen AI are disrupting businesses


• Enterprise Technology adoption / upgrade cycle could boost long-term growth


• Consumers' Tech adoption continues to be another key growth lever for tech firms


• Rate hikes caused tech export uncertainty, however now we are at the cusp of a macro recovery as central banks pivot to rate cuts.


• Pent up demand for technology should potentially drive a strong recovery in growth and profitability


• Sector's divergence v/s historical valuations are largely in-line with the broader market


• Adjusted for the high growth in the post Covid era, PE multiples are potentially attractive in many cases

Who should invest in the LIC MF Technology Fund?

The fund is a thematic fund and as with all such funds, timing and allocation size are critical. Over-allocation can significantly skew an investor's overall risk profile. Therefore, investors should use this fund as a tactical or satellite allocation.

This fund is suitable for investors who:

• Want targeted exposure to India's Technology sector with a long-term horizon (at least 5+ years).


• Are comfortable with high volatility, sector concentration risk


• Already have a diversified core equity allocation and are looking to invest in this fund as a satellite, thematic investment.

Consult a financial advisor or a mutual fund distributor to understand if LIC MF Technology Fund is suitable to your investor profile and specific goals.