IT ETFs

Get focused exposure to India's leading technology and IT services companies through a single exchange-traded unit.
Explore

What are IT ETFs?

IT ETFs are exchange-traded funds that invest in the shares of leading Indian information technology companies, typically tracking an IT sector index such as the Nifty IT Index. They offer investors a simple way to gain exposure to India’s globally competitive IT services and software industry through a single ETF.

As passively managed, sector-specific funds, IT ETFs aim to replicate the composition and performance of their underlying index rather than relying on active stock selection. This provides investors low cost, transparent access to a basket of IT stocks, without requiring investors to individually select and track each stock.

style
box-shadow-fix-container, block-bottom-red-after-v2

Benefits of investing in ETFs

Easy Portfolio Diversification

Get exposure to a wide range of stocks, bonds, or commodities with a single investment.

Low-Cost Investment

ETFs often cost less than traditional mutual funds due to lower expense ratios.

Flexibility & Variety

Choose from equity, debt, or gold to match your investment goals and risk profile.

Trade Anytime Like Stocks

Easily trade in ETFs during market hours at real-time prices as they are traded on stock exchanges.

Transparent Investing

Most ETFs disclose their holdings daily, so you have a clear picture about your investments.

style
no-padding-top

Cost & Tax Implication

h3
true
twoCol
default
Cost / feature
Details
Demat account
Required
Buy / sell mode
Real-time, on the stock exchange
Brokerage & statutory charges
Applicable
Exit load
As applicable to the individual ETF

*Expense ratios vary across Banking ETFs and may change from time to time. Please check the individual ETF's details before investing.

style
no-padding-top

Taxation

h3
true
twoCol
default
Tax implication
Details
Short-term capital gains (STCG)
20% on gains when units are held for 12 months or less
Long-term capital gains (LTCG)
12.5% on gains exceeding ₹1.25 lakh in a financial year when units are held for more than 12 months
Securities Transaction Tax (STT)
Applicable on the sale of equity-oriented ETF units on a recognised stock exchange
style
no-padding-top
Frequently Asked Questions
5
What is an IT ETF?
An IT ETF is a sector-focused exchange traded fund that invests in shares of leading Indian information technology companies, typically tracking the Nifty IT Index, giving investors concentrated exposure to the technology sector through a single unit traded on the exchange.
What kind of companies does the Nifty IT Index include?
The Nifty IT Index primarily includes companies engaged in IT services, software development, business process outsourcing and technology consulting that are listed on the National Stock Exchange and meet the index's liquidity and market capitalisation criteria
How is an IT ETF different from a diversified equity ETF?
An IT ETF focuses on the information technology sector, while a diversified equity ETF invests across companies from multiple sectors. As a result, an IT ETF has greater exposure to factors affecting the IT sector.
Is an IT ETF suitable for long-term investment?
An IT ETF can be considered by investors seeking sector-focused exposure to the Indian IT sector. Since it is concentrated in one sector, its suitability depends on an investor's risk appetite, portfolio allocation and investment objectives.
How often is the Nifty IT Index rebalanced?
The Nifty IT Index is periodically reconstituted by NSE Indices based on defined liquidity, trading frequency and market capitalisation criteria, to ensure it continues to represent the current landscape of listed Indian IT companies.
style
no-padding-top