9 Equity Mutual Funds That Delivered Over 10% Returns in July
These technology-focused funds provided double-digit gains to investors in July 2026.
1Top Performing Funds in July
Among 610 equity mutual funds in India during July 2026, nine delivered returns exceeding 10%. All these funds focused on the technology sector. HDFC Technology Fund led with 16.91% returns, followed by Aditya Birla SL Digital India Fund at 15.08%. Kotak Technology Fund, ICICI Prudential Technology Fund, and SBI Technology Opportunities Fund showed performance in the 13-14% range, highlighting the tech sector's strong momentum.
2Other Notable Performers
Tata Digital India Fund yielded 13.30% returns, while Motilal Oswal Digital India Fund (10.93%), WOC Digital Bharat Fund (10.59%), and Franklin India Technology Fund (10.05%) also achieved double-digit gains. These results reflect how the tech sector revival benefited mutual funds. However, experts caution that technology remains cyclical, making sustained performance uncertain despite current positive trends.
3Sector Risks and Expert Insights
Jasmeet Singh, Executive Director at Anand Rathi Wealth Limited, noted the difficulty in predicting technology sector performance for the next 12-18 months. While the long-term outlook remains positive, short-term performance depends on global demand and corporate earnings. Financial advisors recommend diversified funds with quality IT exposure rather than concentrated sector bets, especially after sharp rallies.
4Market Overview
In July, 442 funds generated returns between 0.03% and 9.91%, while 158 funds posted negative returns - including eight with double-digit losses. International funds dominated the bottom performers, occupying the first 23 spots among negative-return funds. One fund showed zero returns. This contrast underscores the tech sector's outperformance amid broader market challenges.
5Technology Sector Dynamics
The tech sector's surge connects with accelerating global digital transformation and increasing AI investments. India's tech giants show robust growth in software services and cloud computing. However, the sector remains sensitive to interest rate fluctuations and global economic uncertainties. Analysts warn that current valuations might already reflect optimistic expectations, requiring cautious investment approaches.
6Investment Strategies
Financial advisors recommend portfolio diversification to avoid overexposure to any single sector. For tech exposure, they suggest diversified funds with quality IT holdings, balancing sector participation with risk management. Regular portfolio reviews become crucial in volatile markets. New investors might particularly benefit from starting with diversified funds before considering sector-specific options.
7International Funds' Decline
All eight funds with double-digit losses in July were international funds, reflecting global market volatility and developed economy slowdown concerns. Declines in US and European tech stocks impacted Indian investors through these funds. Experts note that international fund investors need higher risk tolerance, as these instruments face currency risks and geopolitical factors alongside market volatility.
8Future Outlook and Key Takeaways
The tech sector's performance reaffirms its importance in India's economy, but investors should focus on long-term strategies rather than short-term speculation. Recognizing both opportunities and risks is essential, with professional financial advice being valuable. Diversified funds offer a balanced entry point, especially for new investors. While tech shows promise, maintaining a disciplined investment approach remains paramount for sustainable returns.
Original article: Economic Times — Temmuz'da %10'un Üzerinde Getiri Sağlayan 9 Hisse Fonu