Mutual Fund Exposure to IT Stocks: The IT sector has emerged as one of the biggest concerns for investors in 2026. So far this year, the Nifty IT index has declined by nearly 28 per cent, while leading technology stocks such as TCS, Infosys, Wipro, and HCL Tech have fallen between 31 per cent and 36 per cent.
The sharp correction has impacted not only direct shareholders of these companies but also millions of mutual fund investors. Most of the country’s leading asset management companies (AMCs) and their flagship mutual funds have meaningful exposure to IT stocks. As a result, if you have invested in mutual funds, it’s important to understand how the downturn in the IT sector could be affecting your portfolio.
Mutual Funds: Which IT stock has fallen by how much so far?
- TCS: 36%
- Infosys: 36%
- HCL Tech: 31%
- Wipro: 35%
- Persistent Systems: 25%
- Tech Mahindra: 13%
- Coforge: 11%
- Emphasis: 19%
Mutual funds: Focus continues on IT sector
Although mutual funds’ exposure to the IT sector has declined in recent months due to the sharp correction in technology stocks, the sector continues to account for a significant share of their portfolios. As a result, the ongoing weakness in IT stocks is still having a noticeable impact on the performance of many mutual fund schemes.
In May 2026, a large number of mutual funds bought major IT stocks such as TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra, with all registering net purchases. Most major AMCs have 5 per cent to 10 per cent exposure to the IT sector in their portfolios.
Mutual funds: Major stakes held by all major AMCs
Most of the top mutual fund houses in the country have significant investments in the IT sector. SBI Mutual Fund has 6 per cent, HDFC Mutual Fund has 6.9 per cent, ICICI Prudential AMC has 7.1 per cent, Nippon India AMC has 5.7 per cent, and Parag Parikh Mutual Fund has 12.1 per cent allocation to the IT sector.
- SBI Mutual Fund: 6.0%
- HDFC Mutual Fund: 6.9%
- ICICI Pru MF: 7.1%
- Motilal Oswal MF: 8.0%
- Nippon India MF: 5.7%
- PPFAS: 12.1%
- Tata MF: 10.2%
- Franklin India MF: 8.5%
- HSBC: 4.7%
- Mirae Asset: 6.1%
- Kotak Mahindra MF: 4.7%
- Axis MF: 6.7%
- ABSL MF: 7.5%
- DSP MF: 6.2%
Most of the largest funds in terms of assets under management (AUM) have significant exposure to the IT sector. Parag Parikh Mutual Fund has over 10 per cent allocation to the IT sector. HDFC Flexi Cap has a total exposure of 10.62 per cent.
The IT sector accounts for 9.77 per cent of HDFC Mid Cap’s portfolio, while ICICI Prudential Large Cap has an allocation of around 5 per cent. SBI Large Cap has a 6 per cent allocation to the IT sector.
Top Mutual Funds with highest exposure to IT Stocks in 2026
Parag Parikh Flexi Cap Fund: 10.2%
- HCL Tech: 3.60%
- Infosys: 3.06%
- Tata Consultancy Services: 2.54%
HDFC Flexi Cap Fund: 10.62%
- HCL Tech: 2.47%
- Infosys: 1.32%
- Persistent Systems: 1.25%
- Coforge: 2.28%
- Persistent Systems: 1.79%
- Emphasis: 1.57%
ICICI Pru Large Cap Fund: 4.81%
- Infosys: 3.60%
- Tech Mahindra: 0.50%
- HCL Tech: 0.47%
SBI Large Cap Fund: 5.97%
- Infosys: 3.86%
- Tech Mahindra: 1.80%
ICICI Prudential Value Fund: 10.73%
- Infosys: 6.17%
- Tata Consultancy Services: 3.65%
- Emphasis: 0.50%
Nippon India Multi Cap Fund: 3.22%
Tech funds: Up to 28% negative returns in 6 months
- Bandhan Nifty IT Index: -27.88%
- Axis Nifty IT Index: -27.75%
- ICICI Pru Nifty IT Index: -27.72%
- SBI Nifty IT Index: -27.72%
- Nippon India Nifty IT Index: -27.70%
- Nippon India ETF Nifty IT: -27.69%
- Navi Nifty IT Index: -27.64%
- DSP Nifty IT Index: -27.63%
- HDFC Technology Fund: -21.28%
- Tata Digital India Fund: -20.68%
- ICICI Pru Technology Fund: -20.05%
- SBI Technology Opportunities Fund: -19.83%
- Kotak Technology Fund: -19.44%
- ABSL Digital India Fund: -19.14%
- Franklin India Technology Fund: -16.91%
- Motilal Oswal Digital India Fund: -9.56%
- Invesco India Tech Fund: -7.91%
- Edelweiss Technology Fund: -4.24%
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
