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.
Frequently Asked Questions
What is the risk level of Tata Digital India Fund?
As per the fund factsheet published by the fund house, Tata Digital India Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in Tata Digital India Fund?
Tata Digital India Fund has no lock-in period for its investors. Thus, the investors of Tata Digital India Fund are free to make redemption requests on any day as per their requirements.
What type of mutual fund is the Tata Digital India Fund?
Tata Digital India Fund is an open-ended equity mutual fund scheme belonging to the sectoral fund category and investing in the Information Technology sector.
Is Tata Digital India Fund an open-ended or close-ended scheme?
The Tata Digital India Fund is an open ended equity mutual fund scheme.
What is the benchmark index for Tata Digital India Fund?
NIFTY IT TRI is the benchmark index of the Tata Digital India Fund. The fund also has Nifty 50 TRI as its additional benchmark index.