Fund Manager, Equity of LIC Mutual Fund AMC on India’s equity runway and the case for a technology-focused fund

With GDP growth, fiscal deficits, and tax regimes remaining stable, the macro environment is ripe for a recovery. As earnings bottom out, FY27 is poised to be a breakout year. India’s structural narrative is currently powered by a potent mix: a revival in capital expenditure, resilient discretionary spending, and a manufacturing sector bolstered by significant policy tailwinds. Furthermore, consumption is expected to accelerate in the coming months, fuelled by the delayed effects of the 2025 income tax and GST cuts, lower interest rates following the RBI’s 2025 easing cycle, and ongoing GST rationalisation. This evolution reflects a decade-long transformation where rising per capita income is fundamentally reshaping lifestyle and spending patterns across both urban and rural India. The recovery is underpinned by a "dual engine" of growth. Domestically, consumption is gaining traction due to lower income tax and GST rates, including the landmark rationalisation in September 2025 and the RBI’s rate cuts throughout CY2025. Externally, the export landscape has been transformed by the recent conclusion of the India-US interim trade framework and the historic India-EU Free Trade Agreement. The earnings trend may improve from 2HFY26 and through FY27, as the downgrade pace likely reduces due to significant disruptions already in base. We’re especially excited about megatrends like energy transition, capital goods, defence, data centres, internet, Discretionary Spending, and the financialization of savings. These sectors are riding strong policy tailwinds and structural momentum. LIC MF Technology Fund invests across the rapidly evolving digital ecosystem, capturing growth from multiple innovation-led sectors. It focuses on core technology companies that build the software, hardware, and platforms powering modern life. The fund also taps into the expanding internet and digital ecosystem, where rising connectivity and smartphone penetration continue to drive new user behaviours. As data becomes the new infrastructure, the fund benefits from the surge in data centres and ancillary services, which support cloud computing, AI, and high-traffic digital operations. Additionally, it leverages the fast-growing e-commerce and quick commerce space, where convenience, speed, and digital payments are reshaping consumer habits. Together, these segments form the backbone of the digital economy, offering long-term structural growth opportunities for investors. These are not themes; they are foundational economic shifts that will dominate wealth creation over the next decade. This is not a trend; it is a structural transformation. AI is unlikely to replace enterprise software or IT services; instead: Source: pib.gov.in, digipay.gov.in LIC MF TECHNOLOGY FUND An open-ended equity scheme investing in technology and technology-related companies Disclaimer: This disclaimer informs readers that the views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to the author's employer, organisation, committee, or other group or individual. The information in this article alone is not sufficient and should not be used for the development or implementation of an investment strategy. The sectors mentioned herein are used to explain the concept and are for illustrative purposes only. Past performance may or may not be sustainable in future and is not a guarantee of any future returns. Neither the Sponsors/the AMC/ the Trustee Company/ their associates/ any person connected with it, accepts any liability arising from the use of this information. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Note to the Reader: This article is part of Hindustan Times' promotional consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content. The content is for informational and awareness purposes and does not constitute financial advice.