HDFC Technology Fund
Direct · GrowthAI Summary
HDFC Technology Fund has delivered negative SIP XIRR of -3.17% over 1Y and -3.37% over 3Y, dramatically underperforming the category average SIP XIRR of 11.76% and 16.45% respectively. Calendar year returns show high volatility, swinging from +34.69% in 2024 to -17.48% in 2026. The 3Y rolling return mean of 5.54% versus a 1Y mean of -2.2% indicates returns have been weak across most measurement windows.
The fund has experienced one major drawdown event exceeding 10%, with a maximum drawdown duration of 565 days and no recovery yet recorded, signaling a prolonged downturn. Calmar ratios of 0.2033 (1Y) and 0.1732 (3Y) indicate weak risk-adjusted returns relative to the depth of losses. Investors should expect sharp swings given the fund's concentrated sector exposure.
The portfolio is heavily concentrated in IT - Software at 52.9% of assets, with Telecom - Services adding 17.6%, led by Bharti Airtel at 13.74%. Top holdings include Infosys (11.14%), TCS (9.16%), and HCL Technologies (7.6%), giving the fund meaningful exposure to large-cap IT names. With 26 total holdings, individual stock diversification is reasonable, but sector-level concentration remains very high.
The fund trails the category SIP XIRR averages by roughly 15 percentage points across both 1Y and 3Y horizons, placing it in the bottom tier of thematic peers. Inconsistent calendar year returns — +10.02% in 2023, +34.69% in 2024, -4.48% in 2025, and -17.48% in 2026 — reflect a lack of steady performance. This underperformance suggests the technology theme has been out of favor while broader categories delivered double-digit returns.
This fund is suitable only for aggressive investors with high risk tolerance and conviction in the Indian technology sector's long-term prospects. A time horizon of at least 5-7 years is advisable, given the ongoing 565-day drawdown with no recovery and negative recent returns. It should be treated as a satellite allocation, not a core holding, and sized modestly within a diversified portfolio.
- Low expense ratio of 0.99% for a thematic fund, reducing cost drag on returns
- Exposure to quality large-cap IT leaders like Infosys, TCS, and HCL Technologies alongside mid-cap names like Coforge and MphasiS
- Reasonable stock-level diversification with 26 holdings and no single stock above 13.74% of NAV
- Severe underperformance versus category peers, with negative SIP XIRR of -3.37% over 3Y against a category average of 16.45%
- High sector concentration with 52.9% in IT - Software, amplifying theme-specific downturns
- Ongoing maximum drawdown of 565 days with no recovery, indicating a prolonged and unresolved decline
Generated on 13-10-2026, 3:10 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 | ₹12.00 L | 5.1% | -36.5% | 66.5% |
| 3 Years | ₹36.00 L | ₹35.13 L | -2.3% | -6.7% | 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 | Category avg |
|---|---|---|
| 1 Year | 5.1% | 11.7% |
| 3 Years | -2.3% | 16.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 6.1% | -2.4% | -25.3% | 48.8% | -0.02 | -0.03 | 44% | — | — |
| 3 Years | 5.6% | 5.5% | 4.7% | 8.5% | -0.93 | -0.74 | 100% | — | — |
Calmar Ratio by Duration
| # | Stock | % of NAV |
|---|---|---|
| 1 | Bharti Airtel Ltd. | 13.74% |
| 2 | Infosys Limited | 11.14% |
| 3 | Tata Consultancy Services Ltd. | 9.16% |
| 4 | HCL Technologies Ltd. | 7.60% |
| 5 | Tech Mahindra Ltd. | 5.12% |
| 6 | MphasiS Limited. | 5.03% |
| 7 | INFO EDGE (INDIA) LIMITED | 4.64% |
| 8 | Coforge Limited | 4.56% |
| 9 | Firstsource Solutions Ltd. | 4.30% |
| 10 | Eternal Limited | 3.94% |