New Delhi, Aug. 19 -- Technology mutual funds have regained investor attention after a sharp rebound in July. As per the NSE website, the Nifty IT index rose 16.77% in July, reversing a 9.56% decline in June 2026.

But should investors view the rally as the start of a sustained recovery and consider increasing their allocation? Find out here.

Aditya Agarwal, Co-Founder, Wealthy.in, explained that "technology mutual funds delivered around 14% average return in July, following a 6.40% decline in June. It should be viewed as a sharp cyclical rebound rather than confirmation that the sector has entered a sustained upcycle."

He further added that the Nifty IT index gained around 16% in July, its strongest monthly performance in six years, in...