New Mutual Fund Launches: LIC Tech Fund & NPS Health Scheme

Two New Investment Products Worth Knowing About

March 2026 has brought two interesting new launches in the mutual fund and pension space. If you're looking to invest in India's technology boom or want your pension to cover medical bills, these deserve your attention.

Let's break down both products — what they offer, who they're for, and whether you should invest.

1. LIC MF Technology Fund

LIC Mutual Fund has launched its first-ever technology sector fund, targeting companies in AI, cloud computing, semiconductors, and digital platforms.

Key Details

Feature	Details
Fund type	Thematic equity (technology sector)
NFO period	Feb 20 – March 6, 2026 (closed)
Reopened for investment	March 19, 2026 onwards
Minimum investment	₹1,000 (lump sum)
SIP options	Daily from ₹100, Monthly from ₹200, Quarterly from ₹1,000
Benchmark	BSE Teck Total Return Index (TRI)
Fund managers	Karan Doshi & Jayprakash Toshniwal

What Does It Invest In?

The fund targets India's expanding technology ecosystem across several themes:

• Artificial Intelligence & Machine Learning — companies building or deploying AI solutions
• Cloud infrastructure — data centre operators, cloud service providers
• Semiconductors — chip manufacturers and the growing "Make in India" semiconductor push
• Digital platforms — fintech, e-commerce, digital services
• IT services — India's traditional IT powerhouses like TCS, Infosys, Wipro

Should You Invest?

Pros:

• India's tech sector is a genuine long-term growth story
• AI, cloud, and semiconductor spending is booming globally
• SIP starting at just ₹100/day makes it accessible

Cons:

• It's a sector fund — concentrated risk (note that SEBI recently tightened rules on thematic funds). If tech underperforms, the entire fund suffers
• IT stocks have been under pressure recently due to US tariffs, AI disruption fears, and the broader market crash this week
• New fund with no track record — you're betting on the fund managers' ability

Verdict: Suitable for investors who already have a diversified core portfolio (large cap + flexi cap) and want to add a 5-10% tech allocation as a satellite holding. Not recommended as your only equity investment.

2. ICICI Prudential Swasthya Pension Scheme

This is genuinely innovative. ICICI Prudential has launched India's first pension scheme that lets you withdraw money for medical expenses — a concept that bridges the gap between retirement planning and healthcare.

Key Details

Feature	Details
Scheme type	NPS scheme (under PFRDA Regulatory Sandbox)
Medical withdrawal	Up to 25% of own contributions
Minimum corpus for withdrawal	₹50,000
Number of withdrawals	Unlimited (once eligible)
Healthcare partner	Apollo 24|7 (app + network hospitals)
Emergency clause	Premature closure if medical need exceeds 70% of corpus

How Medical Withdrawals Work

Here's what makes this scheme unique:

• You can withdraw up to 25% of your own contributions for healthcare expenses — OPD visits, diagnostics, hospitalisation, and pharmacy bills
• The minimum balance for withdrawal is ₹50,000, and there's no cap on how many times you can withdraw once you're eligible
• In regular NPS, you only get 4 partial withdrawals during the entire tenure. The Swasthya scheme removes this limit for medical expenses
• Healthcare services are accessed through the Apollo 24|7 app — covering medicines, diagnostics, and consultations
• In medical emergencies where you need more than 70% of your corpus, premature closure is allowed — payments go directly to the healthcare provider

Current Limitations

• This is a pilot project under PFRDA's Regulatory Sandbox — not a permanent scheme yet
• Physical pharmacy and hospital access is currently limited to Bengaluru and Hyderabad (digital services work nationwide)
• Healthcare partner is only Apollo 24|7 — no other hospital chains yet

Should You Sign Up?

Pros:

• Solves a real problem — healthcare costs are the #1 reason people dip into retirement savings
• More flexible than regular NPS for medical withdrawals
• If the pilot succeeds, this could become a standard NPS feature

Cons:

• Still experimental — rules may change
• Limited to Apollo's network for now
• If you already have good health insurance, the medical withdrawal benefit is less compelling

Verdict: An interesting innovation worth watching. If you don't have comprehensive health insurance and are already an NPS subscriber, it's worth considering. For others, wait until it's more established.

Explore our NPS Calculator to see how your pension corpus would grow under different contribution scenarios.

How These Fit Into Your Overall Portfolio

Neither of these products should be your primary investment. Think of them as add-ons to a well-diversified core portfolio:

• Core: Diversified equity mutual fund SIP (calculate returns here)
• Safety: FD + PPF for guaranteed returns
• Retirement: NPS for tax benefits + pension (calculator)
• Satellite: Sector funds like LIC MF Tech Fund (5-10% allocation)
• Insurance: Term life + health insurance (non-negotiable)

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.