Archive · 30 Jul 2026
India's Semiconductor Growth Spurs Mutual Fund Interest for Investors
India is building a big chip industry, and the government is helping by giving money and making rules.
Because of this, some companies that make parts for chips are growing.
Three mutual funds, which are like big baskets of stocks, are picking companies that could benefit from this chip boom.
One fund focuses on infrastructure, another on a mix of big and small companies, and the third on defense companies that also make electronics.
If you invest in these funds, you might get good returns, but the funds are not only about chips, so you should check how they work before buying.
India’s semiconductor industry is expanding under the Semicon India Programme 2.0.
The government has approved 12 projects across six states, with three already in production.
Three mutual funds—Canara Robeco Infrastructure, Motilal Oswal Flexi Cap, and HDFC Defence—offer indirect exposure to the semiconductor ecosystem.
Each fund’s portfolio includes companies in electrical equipment, aerospace & defense, and industrial manufacturing.
Historical performance shows mixed results; investors should review risk, return, and sector focus before investing.
- Who
- Indian mutual fund managers and investors
- What
- Analysis of three mutual funds with indirect exposure to India’s semiconductor growth
- When
- June 2026
- Where
- India
- Why
- Government support for semiconductor ecosystem creates investment opportunities
- Government Program
- Semicon India Programme 2.0
- Target Market Size
- US$200 billion by 2035
- Number of Approved Projects
- 12
- Funds Discussed
- 3
- Total AUM of Funds (approx.)
- Rs 240,168 million