Nippon India Nifty IT Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Nippon India Nifty IT Index Fund Direct Growth Plan had a NAV of ₹8.0026 as of 17 Sep 2026 and an AUM of ₹262 Cr. Its 1-year, 3-year and 5-year returns are -16.19%, 0% and 0%, and the scheme sits in the High Risk bucket. Our view is that this is a focused sector fund with a narrow IT-only portfolio, so it can suit investors who understand sector swings and want a benchmark-aware exposure rather than a diversified core holding.

The recent return pattern has been weak, but the fund’s short-term movement also shows periods of recovery that do not yet alter the longer stretch of underperformance. That makes it more suitable for investors with a long horizon and a clear view on Indian IT, while those looking for steadier category-style participation may find the swings harder to accept.

Quick facts

Particular	Details
NAV	₹8.0026 as of 17 Sep 2026
AUM	₹262 Cr
Expense Ratio	0.25%
Launch Date	22 Feb 2024
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	No exit load
Fund Managers	Jitendra Tolani

The fund is managed by Jitendra Tolani.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.51%	-3.66%
3M	2.62%	-3.71%
1Y	-16.19%	-7.13%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The fund’s recent pattern has been uneven. Over 1 month, it was marginally better than the benchmark, but over 3 months it turned meaningfully stronger than the benchmark’s decline. That kind of split usually points to a sharp rotation within the sector rather than a smooth trend, so short windows should not be read as stable momentum.

The 1-year picture is weaker. The fund fell 16.19% versus the benchmark’s 7.13% decline, which tells us the portfolio has absorbed more pressure than the broad market measure used here. For investors, that matters because a sector fund can diverge sharply from the market even when the benchmark itself is soft.

The month-by-month pattern also supports that view. The series shows a recovery after earlier weakness, but it does not yet form a clean, persistent upward path. In practical terms, the fund has shown that it can rebound over shorter stretches, yet the longer rhythm remains fragile.

Because the 3-year and 5-year figures are not available, we do not have a longer trailing record to judge compounding across full market cycles. That makes the available 1-year and short-term return pattern the main evidence set, and it leans toward a high-volatility, sector-sensitive profile rather than a smooth compounding story.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Nippon India Nifty IT Index?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Nippon India Nifty IT Index Fund Direct Growth Plan	-16.19%	Data not available	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	29.31%	30.01%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	21.45%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.13%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.68%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	17.57%	18.84%	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund’s 1-year return trails every peer listed here with a disclosed 1-year figure, while the short-term peer set shows much stronger gains in sector and thematic strategies. The contrast is sharper on the longer look as well: where peers such as the ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan and ICICI Pru Nifty Pharma Index Fund Direct Growth Plan show positive 3-year results, this fund has no available 3-year or 5-year trail in the visible record. The short-term and longer-term comparison therefore point in different directions, but neither removes the fund’s high-volatility character.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Infosys Limited	IT	28.93%
Tata Consultancy Services Limited	IT	20.3%
HCL Technologies Limited	IT	11.46%
Tech Mahindra Limited	IT	10.55%
Coforge Limited	IT	7.05%
Persistent Systems Limited	IT	6.2%
Wipro Limited	IT	5.1%
LTM Limited	IT	4.3%
Mphasis Limited	IT	3.28%
Oracle Financial Services Software Limited	IT	3.04%

The largest holding, Infosys Limited, carries a 28.93% weight, which means one company could have a large influence on the fund’s day-to-day movement. The second holding, Tata Consultancy Services Limited, is also sizeable at 20.3%, so the top two positions together already dominate the portfolio’s shape.

Weight then falls steadily through the rest of the top 10, dropping to 3.04% by the final holding shown. That decline is meaningful, but it still leaves the portfolio anchored in a handful of large IT names rather than spread evenly across many smaller positions. Since the top 10 account for 100% of the disclosed holdings and the disclosed holding count is 10, the visible portfolio is highly concentrated within the IT theme.

That concentration may help the fund track the sector closely, but it could also amplify moves when a few large software or services stocks swing sharply. For investors, the key point is that the fund is built around a tight cluster of names, so it is unlikely to behave like a broad-market diversified equity fund.

Source data date: as of 17 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk and can hold through sharp swings in a sector-focused portfolio. The available return pattern shows weak 1-year performance and no 3-year or 5-year trail, so it is better viewed as a tactical or thematic allocation than a steady core holding.

Its main trade-off is clear: investors get concentrated exposure to Indian IT names, but they also accept larger swings than a broad-market fund. The benchmark comparison shows that the fund has not yet matched the broader market measure over 1 year, while short-term movement has been uneven. That makes a longer horizon important, especially for investors who want sector exposure and can tolerate a bumpy path.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: No exit load.

Source data date: as of 17 Sep 2026

Frequently asked questions

What is the current NAV of Nippon India Nifty IT Index Fund Direct Growth Plan?

The current NAV is ₹8.0026 as of 17 Sep 2026.

How has the fund performed over 1 year, 3 years and 5 years?

Its 1-year return is -16.19%, while the 3-year and 5-year returns are Data not available.

How does the fund compare with its benchmark?

Over 1 year, the fund fell 16.19% versus the benchmark’s 7.13% decline. Over 1 month and 3 months, the fund behaved differently from the benchmark, with a smaller 1-month decline and a positive 3-month return.

How does it compare with the peer funds listed here?

Its 1-year return is weaker than the peer funds shown with available 1-year figures, while some peers also have positive 3-year returns. That makes the fund’s recent return profile look softer than the listed comparison set.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

What are the risk profile, portfolio style and exit load?

The fund is High Risk and is built around a concentrated IT portfolio. The top disclosed holding is Infosys Limited at 28.93%, and the fund has no exit load.

Bottom line

The fund’s recent behaviour is weaker than its broader market benchmark over 1 year, even though the short-term path shows some recovery. Against the listed peers, the available return figures also look softer. Its High Risk profile and concentrated IT holdings mean the fund is most relevant for investors who want sector-specific exposure and can accept sharp swings rather than smooth compounding. The main appeal is the tight, index-based IT focus; the main caution is the limited diversification inside that theme.

Published on 18 September 2026 at 12:33 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.