Tata Digital India Fund: A Boon for IT Sector Focused Investors

Posted by Dishika Baheti on August 13th, 2018

Tata Mutual Fund, one of the leading AMCs in India that has been managing and proving through its schemes, the power that it holds, to transform normal lives. This MF on the footsteps of Mr. J.R.D. Tata is following the belief that whatever is received from the people in the form of investments should go back to them several times over. Keeping it in mind, they launched Tata Digital India Fund on December 28th, 2015.

Why Invest in Information Technology Sector Right now?
India has become the top most offshore destination for various IT companies that are present across the world. It has proven to be the most efficient countries when it comes to this sector and has delivered both onshore and offshore IT services to the global clients. This industry is about to see the expected growth in the export revenue with 7% to 9% in the financial year 2019. This means that the companies will be at profit in the coming time.

What Is Tata Digital India Fund (G)?
This scheme by Tata MF is for IT savvy investors with interest in equity investments. The investment objective of this scheme is to invest at least 80% of the net assets in equity and equity related instruments mainly in the IT sector companies to generate capital appreciation. This scheme provides flexibility to the investors to switch-in and switch-out of it, being an open-ended fund. It may invest 100% of the assets in equity and up to 20% in debt and money market instruments. The overall risk involvement in this scheme on the principal amount shall be moderately high which should be kept in mind by the investors who are keen to invest in it.

The one-year returns (51.63%) of this scheme have been outstanding as compared to its benchmark NIFTY IT TRI which is 39.56%, and category with returns of 40.36%, respectively as on August 07th, 2018. These returns have even surpassed drastically the returns provided by its competitors including Aditya Birla Sun Life Digital India Fund, Franklin India Technology Fund, ICICI Prudential Technology Fund, and SBI Technology Opportunities Fund. The returns yielded by these schemes have not even crossed 41% as one-year returns. This simply showcases the effort that Tata Digital India Fund has put in to yield such bountiful performance.

Investment Details of Tata Digital India –Growth Plan
There are some important factors which you should be aware of if you are planning to park your hard earned money in Tata Digital India Fund.

Minimum Investment Amount - If you are investing in it for the very first time, then you will have to submit Rs. 5000. In case you are an existing investor, all you need to apply with is Rs. 1000. You may invest in this scheme through SIP mode as well.

Entry and Exit Load Payable - You may invest in it without worrying about the entry load as there is no such amount chargeable. If you wish to avoid the exit load as well, then make sure that you don’t redeem the amount invested before completion of three months. If case you do so, 0.25% of NAV will be charged as exit load.

Net Asset Value - Tata Digital India Fund NAV as on August 07th, 2018 was Rs. 14.7148. Net asset value is the per unit value according to which the units are allotted to the investors. For example, if you invest Rs. 5000, then this investment amount divided by NAV will generate the number of units for you.

Before adding Tata Digital India Fund to your portfolio, do not forget to consult a financial advisor.

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Dishika Baheti

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Dishika Baheti
Joined: February 14th, 2018
Articles Posted: 33

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