It is based on the IT sector making it a sectoral/thematic mutual fund. Sectoral funds are riskier than general equity mutual funds.

In the information technology sector, Tata Digital India Fund invests primarily in equity and equity-line derivatives of companies. The purpose of this fund is to provide investors with long-term capital appreciation. Tata Digital India Fund G is suitable for investors with a high-risk appetite as it is a sector fund with investment-oriented with little diversification.

Tata India digital fund Details

• Category-    Sectoral-IT
• Fund Type-    Open Ended
• Launch Date-    28 December 2015
• Asset Size (Cr)-    393 (As on Jan 31, 2020)
• Expense Ratio-    1.76% (As on Jan 31, 2020)
• Fund Manager-    Meeta Shetty, Sailesh Jain

It is a sector fund focused on the IT sector. In the past year, IT has experienced a revival making it one of the best performing segments on the market. This is partly due to the dollar earnings of IT companies and the rupee falling against the dollar, increasing the rupee value of their profits.

Sector funds are usually hazardous, so invest only if you are quite optimistic about the prospects of the IT sector and are ready to take the risk involved. Some funds such as Aditya Birla Sun Life New Millennium, ICICI Prudential Technology Fund, and Franklin Innovation Fund may also be listed.

The TATA India Digital Fund is a smart investment option for people considering investing in mutual funds. It is a technology-driven world where computers are used in everything, their reach in the technology industry is very high, and Tata Digital India Fund G mostly invests in the technology industry. The strength of every country depends not only on the armed forces but also on the type of technology. By investing in this fund, you not only help to develop yourself but also give a significant boost to the economy of the countries.

TATA Digital India Fund Manage High Growth

Apart from being related to the fast-moving technology industry, the developed portfolio is one of the primary reasons for the fund for success. Most of the funds, around 80 percent, are invested in equities and related instruments, while the rest lies with debt. The difference within equity is presented on a rational basis, which includes a variety of different stocks in the portfolio.

About 65 percent of the equity is allocated to large and large stocks, 30% to midcap, and the balance to small-cap. This diversification helps the fund to perform better under all market conditions, allowing customers to earn more money.

Industries Involved In TATA Digital India Fund

The funds are almost entirely devoted to the technology sector, as is evident from the name of the fund, namely the fund in the technology sector. The Tata Digital India Fund-Regular Plan (G) focuses primarily on the technology sector, as opposed to the general strategy adopted by other thematic funds. A meager percentage of 4.18% is for the engineering sector, which is also linked elsewhere.