Best IT ETFs in India (2026)

Many individuals seek ways to participate in this digital revolution without the risk of picking individual stocks. A simple and highly effective method exists to achieve this financial goal. This type of investing means putting your money in a basket of top software and technology companies.

Information technology market is highly dynamic and volatile. Holding a diversified portfolio of software stocks can be highly rewarding. Today, the discussion explores how individuals can easily take part in this exciting financial journey.

What is an Information Technology ETF?

An IT ETF stands for Information Technology Exchange Traded Fund. This is a special type of mutual fund that trades on the stock market just like regular shares. Finding the best it etf in india helps investors buy a small piece of all the top technology companies at one single time.

By doing this, individuals avoid the huge risk of relying on just one single company. An it etf list usually includes industry giants like Tata Consultancy Services, Infosys, and HCL Technologies. There are several excellent it etfs in india available today for regular investors.

These funds track a specific market index, such as the Nifty IT index. The main goal of an it etf india is to mirror the performance of this underlying technology index exactly. When the overall technology sector performs well, the fund’s value also increases. This provides a very simple and low-cost way for regular people to invest in the software and digital services industry.

The Nifty IT Index consists of the largest and most liquid Indian information technology companies. These companies represent a massive portion of India’s technology exports. Funds that track this index buy shares in the exact same proportion as the index itself. This passive management style keeps the overall running costs very low for investors.

List of Best 5 IT ETFs in India 

The following table presents the top five information technology funds in India. They are ranked by their Assets Under Management (AUM). 

ETF Name	Ticker Symbol	AUM (₹ Cr)	Price (₹)	Expense Ratio (%)	1Y Return (%)	3Y Return (%)	5Y Return (%)
Nippon India ETF Nifty IT	ITBEES	3,532.65	32.16	0.19	-25.57	0.47	1.35
ICICI Prudential Nifty IT ETF	ITIETF	532.42	31.02	0.17	-25.44	0.55	1.42
Kotak Nifty IT ETF	IT	234.00	31.06	0.08	-25.21	0.68	1.54
DSP Nifty IT ETF	ITADD	145	29.67	0.41	-25.31	0.54	NA
Axis NIFTY IT ETF	ITAXIS	143	308.41	0.21	-25.54	0.45	1.36

Overview of Best 5 IT ETFs in India

1. Nippon India ETF Nifty IT

Nippon India ETF Nifty IT is the largest fund in this category. It currently manages assets worth ₹3532.65 crore. It trades under the popular symbol ITBEES on the stock exchanges. Having 0.19 expense ratio. The fund was launched in june 2020.

Over the past five years, it has delivered an annualised return of 1.35 percent. The recent one-year negative return of -25.57 percent reflects a global slowdown in technology spending. High interest rates globally have temporarily affected the profit margins of these Indian companies.

ETF Name	AUM (₹ Cr)	1Y Return (%)	3Y Return (%)	5Y Return (%)
Nippon India ETF Nifty IT	3532.65	-25.57	0.47	1.35

2. ICICI Prudential Nifty IT ETF

ICICI Prudential Nifty IT ETF is the second-largest fund in the segment. It holds an AUM of ₹532.42 crore. It trades under the symbol ITIETF and was launched in August 2020.

This scheme provides a highly accessible way for individuals to invest in the technology sector. The fund maintains a low expense ratio of 0.17 percent. It strictly replicates the Nifty IT index by investing heavily in major technology firms.

Being relatively new, its five-year return data is not yet available. However, it closely mirrors the broader market trends with a one-year return of -25.44 percent.

ETF Name	AUM (₹ Cr)	1Y Return (%)	3Y Return (%)	5Y Return (%)
ICICI Prudential Nifty IT ETF	532.42	-25.44	0.55	1.42

3. Kotak Nifty IT ETF

Kotak Nifty IT ETF manages assets worth ₹231.00 crore. It is highly notable for having the lowest expense ratio among its peers. The expense ratio stands at just 0.09 percent.

This incredibly low cost makes it very attractive for long-term investors. Launched in March 2021, the fund aims to generate returns that match the Nifty IT index. The fund holds a basket of reliable technology stocks.

Investors can buy this fund efficiently through any standard brokerage platform. Like other funds, it has faced short-term pressure with a one-year return of -25.21 percent.

ETF Name	AUM (₹ Cr)	1Y Return (%)	3Y Return (%)	5Y Return (%)
Kotak Nifty IT ETF	234.00	-25.21	0.68	1.54

4. DSP Nifty IT ETF

DSP Nifty IT ETF is a relatively newer entrant in the market. It was launched recently in July 2023. It currently holds assets under management worth ₹145 crore.

The fund trades under the symbol ITADD on the national exchanges. The expense ratio for this fund is at 0.17 percent. Since it is a new fund, five-year return metrics are not applicable yet.

It continues to provide targeted exposure to India’s top ten liquid and large-cap IT stocks. The fund experienced a one-year return of -25.31 percent due to the ongoing global tech sector correction.

ETF Name	AUM (₹ Cr)	1Y Return (%)	3Y Return (%)	5Y Return (%)
DSP Nifty IT ETF	145	-25.31	0.54	NA

5. Axis NIFTY IT ETF

Axis NIFTY IT ETF manages an AUM of ₹143 crore. It trades under the ticker symbol ITAXIS. It has a slightly higher unit price, trading around ₹308.41.

The fund charges a competitive expense ratio of 0.25 percent. This fund was introduced to the market in March 2021. It has shown a positive long-term trend with a five-year return of 7.62 percent.

The investment strategy focuses on the physical replication of the Nifty IT index components. The higher absolute share price does not affect the percentage returns for the investor.

ETF Name	AUM (₹ Cr)	1Y Return (%)	3Y Return (%)	5Y Return (%)
Axis NIFTY IT ETF	143	-25.54	0.45	1.36

Read Also: Best Index ETFs in India

Advantages of investing in IT ETF

• Instant Diversification: Buying just one unit gives an investor exposure to multiple top software companies. This strategy significantly reduces the risk compared to investing all funds in one single stock.
• Cost-Effective Investment: These funds generally feature a very low expense ratio. Investors save a lot of money on management fees, which naturally helps increase long-term profits.
• Easy Liquidity: These funds trade directly on the stock exchange during normal market hours. Individuals can buy or sell them instantly, exactly like regular company shares.
• Transparent Holdings: Investors do not need to spend hours researching individual companies. The fund automatically tracks the top technology businesses, and the portfolio is disclosed daily.

Disadvantages of investing in IT ETF

• Sector Concentration Risk: All the invested money goes into the technology sector only. If the technology industry faces a tough period, the entire investment value will drop at the same time.
• No Market Outperformance: These funds are designed only to copy the market index. They cannot beat the market or give higher returns than the index itself.
• Brokerage and Demat Charges: Buying and selling these funds requires an active demat and trading account. Investors must pay brokerage fees and other small taxes for every single transaction.
• Tracking Error: Sometimes the returns of the fund slightly differ from the actual index returns. This minor difference occurs due to internal cash management and daily expense deductions.

How to invest in IT ETF

• Step 1: Open a Demat Account. An investor needs a valid demat and trading account to buy these funds. 
• Step 2: Complete the KYC Process. The user must submit basic identity documents online. This includes providing a PAN card, an Aadhaar card, and linked bank account details for smooth verification.
• Step 3: Search for the ETF. Once the trading account is fully active, the investor can log into the app or website. Searching for the desired ticker symbol, like ITBEES or ITAXIS, will instantly bring up the fund details.
• Step 4: Place the Buy Order. The investor simply needs to enter the number of units they wish to purchase. Clicking the buy button will execute the trade immediately, and the units will appear in the demat account shortly.

Read Also: List of Best Commodity ETFs in India

Conclusion

The Indian technology sector continues to hold immense potential for the future. Investing in ETFs, technology-focused funds offers a very straightforward path to participate in this ongoing digital growth. While there are certainly risks tied to focusing on a single sector, the clear benefits of low costs and instant diversification remain highly attractive.

A well-planned investment approach can help individuals build steady wealth over a long period. Selecting the right online trading platform, such as Pocketful, makes the entire investment journey smooth and completely hassle-free. 

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It is a passive mutual fund traded directly on the stock exchange. It invests solely in the top information technology companies in India.

2.What are the main benefits?

These funds offer very low management costs, and easy trading on stock exchanges. Investors gain safe exposure to tech giants without picking individual stocks.

3.How do individuals use these funds?

Investors hold them in a standard demat account to build long-term wealth. They serve as a focused technology portion within a much broader investment portfolio.

4.Are these investments risky?

Yes, they carry sector concentration risk. If the global software industry struggles due to economic factors, the fund value will drop accordingly.

5.Do these funds pay dividends?

Most of these funds automatically reinvest company dividends back into the fund’s net asset value. This internal process helps in compounding the invested money much faster.