Investment Objective
The investment objective of the Tata Digital India Fund is to provide long term capital appreciation by investing at least 80% of its net assets in equity or equity related instruments of the companies engaged in the Information Technology sector.
Investment Strategies
- The fund primarily invests in large cap companies in the IT sector, with significant exposure to mid caps and small caps in the same sector.
- The scheme usually holds 10-15 stocks in its portfolio, with significant allocations to the top 5 stocks.
- The fund focuses on IT sector companies having strong fundamentals.
- The fund focuses on companies having long-term potential for growth, strong balance sheets and the capacity to invest in emerging technologies.
- The fund follows Growth at Reasonable Price (GARP) investment approach for stock selection.
- The indicative list of businesses engaged in the Information Technology sector where the fund may invest in is as follows:
- IT services, consulting and outsourcing companies
- IT hardware and/or software companies
- Internet technology enabled services, including e-commerce, IoT (Internet of Things), technology platforms and other online services
- Data and data solutions providers
- IT infrastructure providers like data centres, leased line providers, etc.
- Fintech companies
- Digital service providers
Who Should Invest
- Investors having a long term investment horizon and seeking to generate attractive returns from investments in the IT sector.
- Those looking to benefit from the growth of India’s digital economy.
- Individuals having a very high risk appetite and are comfortable with the market volatility associated with sector funds.
- Investors who understand that sector funds have much lower diversification than diversified equity funds and thus, carry very high concentration risk.