ICICI Prudential Technology Fund
Direct · GrowthAI Summary
ICICI Prudential Technology Fund has delivered strong SIP XIRR across horizons, including 21.10% over 5Y and 20.64% over 10Y, consistently outpacing the category average SIP XIRR of 16.95% and 16.71% for the same periods. Over longer lump-sum horizons, the fund has beaten the NIFTY 50 decisively, with a 15.7% CAGR over 12Y versus the benchmark's 9.84% and positive alpha of 6.74%. However, recent performance has softened, with negative alpha of -3.23% over 1Y and -2.52% over 5Y versus the benchmark.
The fund exhibits a low beta of 0.68-0.91 versus the NIFTY 50, with consistently lower downside capture (as low as 63.8% over 15Y), indicating it has historically fallen less than the benchmark in weak markets. Calendar year returns reveal high volatility typical of sectoral funds, swinging from +76.24% in 2021 to -22.9% in 2022 and -12.02% in 2026. Risk-adjusted returns remain solid, with Calmar ratios above 0.54 across all horizons, though the 9 drawdown events exceeding 10% underscore meaningful interim losses.
The portfolio is heavily concentrated in IT-Software at 48.6% of assets, with Telecom-Services adding 14.9%, meaning nearly two-thirds of the fund sits in just two sectors. Infosys (12.8%) and Bharti Airtel (12.56%) are the top holdings, followed by Tech Mahindra at 7.51%, with 54 total holdings providing some stock-level diversification. This concentrated sector exposure is inherent to the fund's technology-focused mandate and drives both its outperformance potential and its volatility.
The fund beats the category average SIP XIRR at every measured horizon, with a 7Y XIRR of 22.27% versus the category's 16.51%, a gap of nearly 6 percentage points. Its long-term track record is exceptional, with alpha of 8.02% over 7Y and 7.91% over 10Y against the NIFTY 50. Consistency has weakened recently, with negative benchmark alpha over 1Y and 5Y, suggesting the fund's edge is cyclical rather than constant.
This fund is suitable only for investors with high risk tolerance who understand sectoral fund cycles, as returns can swing dramatically year to year. A time horizon of at least 5-7 years is advisable to ride out technology sector downturns like 2022's -22.9% return. It should be treated as a satellite allocation within a diversified portfolio, not a core holding, and is best accessed via SIP to average through volatility.
- SIP XIRR beats the category average at every horizon, including 21.10% over 5Y versus the category's 16.95%
- Strong long-term alpha versus NIFTY 50, with 8.02% alpha over 7Y and 7.91% over 10Y
- Low downside capture (63.8-70.94% over 10-15Y) shows the fund has historically limited losses in falling markets
- Heavy sector concentration, with IT-Software at 48.6% and Telecom at 14.9%, exposes investors to technology cycle risk
- Recent underperformance versus the benchmark, with negative alpha of -3.23% over 1Y and -2.52% over 5Y, and a -12.02% calendar return in 2026
Generated on 06-09-2026, 7:57 PM. 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 | ₹12.59 L | 23.8% | -54.1% | 170.0% |
| 3 Years | ₹36.00 L | ₹45.29 L | 19.4% | -15.2% | 70.9% |
| 5 Years | ₹60.00 L | ₹99.43 L | 21.1% | -4.7% | 46.9% |
| 7 Years | ₹84.00 L | ₹1.92 Cr | 22.3% | 1.2% | 35.5% |
| 10 Years | ₹1.20 Cr | ₹3.55 Cr | 20.6% | 14.4% | 24.7% |
| 12 Years | ₹1.44 Cr | ₹4.96 Cr | 18.8% | 14.4% | 23.6% |
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 | 23.8% | 14.4% | 14.1% | +9.5% |
| 3 Years | 19.4% | 11.1% | 16.8% | +8.3% |
| 5 Years | 21.1% | 10.4% | 16.9% | +10.7% |
| 7 Years | 22.3% | 10.6% | 16.5% | +11.7% |
| 10 Years | 20.6% | 11.5% | 16.7% | +9.2% |
| 12 Years | 18.8% | 11.4% | 16.3% | +7.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 22.9% | 15.3% | -31.6% | 172.2% | 0.50 | 1.92 | 72% | — | — |
| 3 Years | 19.6% | 15.8% | 0.7% | 48.9% | 1.19 | 21.71 | 100% | — | — |
| 5 Years | 21.2% | 22.1% | 0.5% | 36.9% | 1.80 | 34.75 | 100% | — | — |
| 10 Years | 19.2% | 19.3% | 15.5% | 22.7% | 7.26 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -3.23 | 0.81 | 84.3% | 87.0% | -3.9% | -2.4% |
| 3 Years | +0.91 | 0.86 | 94.0% | 91.3% | 8.6% | 7.8% |
| 5 Years | -2.52 | 0.91 | 94.3% | 95.8% | 5.2% | 7.9% |
| 7 Years | +8.02 | 0.80 | 89.7% | 80.4% | 18.9% | 11.9% |
| 10 Years | +7.91 | 0.75 | 82.8% | 72.0% | 17.7% | 10.9% |
| 12 Years | +6.74 | 0.74 | 80.6% | 70.9% | 15.7% | 9.8% |
| 15 Years | +8.24 | 0.68 | 76.4% | 63.8% | 17.0% | 9.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Infosys Ltd. | 12.80% |
| 2 | Bharti Airtel Ltd. | 12.56% |
| 3 | Tech Mahindra Ltd. | 7.51% |
| 4 | COFORGE Ltd. | 4.48% |
| 5 | Mphasis Ltd. | 4.41% |
| 6 | LTIMindtree Ltd. | 3.38% |
| 7 | Wipro Ltd. | 2.67% |
| 8 | Persistent Systems Ltd. | 2.54% |
| 9 | Sagility India Ltd | 2.39% |
| 10 | Bharti Hexacom Ltd. | 2.32% |