HDFC Technology Fund
Direct · GrowthAI Summary
The HDFC Technology Fund has delivered a 1-year XIRR of 6.10% and a 3-year XIRR of 0.64%, significantly underperforming the category average SIP XIRR of 14.1% and 16.82% for the same periods. Over the 1-year horizon, the fund's CAGR of -8.41% also lagged the NIFTY 50 benchmark's -2.9%, while its 3-year CAGR of 6.9% marginally beat the benchmark's 6.5%. The fund's recent calendar year returns show high volatility, with a 34.69% gain in 2024 followed by losses of -4.48% in 2025 and -14.32% in 2026.
The fund exhibits a maximum drawdown of -30.6% with a drawdown duration of 565 days and no recovery yet, indicating prolonged periods of underperformance. Its average drawdown is -9.5%, and it has experienced one drawdown event exceeding 10%. The Calmar ratio for 1 year is 0.248, reflecting low risk-adjusted returns relative to the drawdown risk taken.
The fund is heavily concentrated in IT-software stocks, with the top 10 holdings comprising about 70% of the portfolio, led by Bharti Airtel (14.25%) and Infosys (11.71%). Sector concentration is extreme, with IT-Software alone at 54.8% and Telecom-Services at 18.1%, leaving limited diversification across other sectors. The top 10 holdings include several mid-cap IT names like Mphasis, Firstsource, and Hexaware, which may add volatility.
The fund significantly lags its sectoral/thematic category peers on a SIP XIRR basis across all time frames, with a 1-year gap of 8 percentage points and a 3-year gap of over 16 percentage points. Its performance has been inconsistent, with a strong 2024 but negative returns in 2025 and 2026, indicating a lack of stability. The fund's alpha versus the NIFTY 50 is negative over most periods, except a marginal positive alpha of 0.4% over 3 years, suggesting it has not consistently added value relative to the benchmark.
This fund is suitable only for investors with a very high risk tolerance and a long-term horizon of at least 7-10 years, given its deep drawdowns and sector concentration. It is not appropriate for conservative investors or those seeking regular income, as it is a growth-oriented thematic fund with high volatility. Investors should be prepared for significant drawdowns and periods of underperformance, and should consider this only as a small satellite allocation within a diversified portfolio.
- The fund has a strong 3-year CAGR of 6.9%, slightly outperforming the NIFTY 50 benchmark's 6.5%.
- It has a lower downside capture ratio (93.16%) than upside capture (95.04%) over 3-15 years, indicating it loses less in down markets relative to the benchmark.
- The fund's expense ratio of 0.99% is reasonable for a sectoral fund, and it holds quality large-cap IT names like Infosys and TCS.
- The fund's XIRR is drastically below the category average across all time periods, with a 1-year XIRR of 6.1% versus the category's 14.1%.
- It is currently in a prolonged drawdown of 565 days with no recovery, and its maximum drawdown of -30.6% is severe, indicating high risk.
Generated on 30-08-2026, 2:54 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.05 L | 6.1% | -36.5% | 66.5% |
| 3 Years | ₹36.00 L | ₹36.30 L | 0.6% | -1.7% | 1.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 6.1% | 14.4% | 14.1% | -8.3% |
| 3 Years | 0.6% | 11.1% | 16.8% | -10.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 7.6% | -1.2% | -25.3% | 48.8% | 0.05 | 0.09 | 48% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -6.73 | 0.87 | 90.1% | 98.2% | -8.4% | -2.9% |
| 3 Years | +0.40 | 0.88 | 95.0% | 93.2% | 6.9% | 6.5% |
| 5 Years | -0.08 | 0.88 | 95.0% | 93.2% | 4.1% | 3.9% |
| 7 Years | -0.28 | 0.88 | 95.0% | 93.2% | 2.9% | 2.7% |
| 10 Years | -0.43 | 0.88 | 95.0% | 93.2% | 2.0% | 1.9% |
| 12 Years | -0.49 | 0.88 | 95.0% | 93.2% | 1.7% | 1.6% |
| 15 Years | -0.55 | 0.88 | 95.0% | 93.2% | 1.3% | 1.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Bharti Airtel Ltd. | 14.25% |
| 2 | Infosys Limited | 11.71% |
| 3 | Tata Consultancy Services Ltd. | 9.76% |
| 4 | HCL Technologies Ltd. | 7.69% |
| 5 | Tech Mahindra Ltd. | 5.07% |
| 6 | MphasiS Limited. | 5.06% |
| 7 | Firstsource Solutions Ltd. | 4.52% |
| 8 | Coforge Limited | 4.29% |
| 9 | INFO EDGE (INDIA) LIMITED | 4.20% |
| 10 | Hexaware Technologies Ltd. | 3.72% |