Question 1

What is Tata Digital India Fund?

Accepted Answer

Tata Digital India Fund is an open-ended equity mutual fund scheme that tracks the benchmark Nifty IT TRI and primarily invests in companies that are part of or benefit from the digital ecosystem, including IT services, software, fintech, and platform-based businesses.

Question 2

How does a digital mutual fund work?

Accepted Answer

A digital mutual fund invests in businesses that are involved in or benefit from digitization-such as IT service providers, e-commerce platforms, cloud-based companies, and fintech firms-with an aim to generate long-term capital appreciation.

Question 3

What are the benefits of investing in a tech-focused mutual fund like Tata Digital India Fund?

Accepted Answer

Some potential benefits of investing in a digital-themed mutual fund include:

Exposure to a segment of the economy driven by technology and innovation
Participation in the long-term structural growth of digital adoption in India
Opportunity to invest in businesses leveraging future tech trends like AI, cloud, and digital finance

Question 4

Who should consider investing in Tata Digital India Fund?

Accepted Answer

This fund may be suitable for investors who:

Are comfortable with sector-specific investments and related market volatility
Have a long-term investment horizon
Seek to invest in companies that benefit from the growth of Indias digital economy
Understand that sector funds may not be as diversified as broader equity mutual funds
Having a very high risk appetite

Question 5

What kind of companies does Tata Digital India Fund invest in?

Accepted Answer

The fund invests in a range of technology-oriented companies, including IT services, software development, digital infrastructure, cloud services, fintech, and other digitally enabled businesses.

Question 6

How can one invest in Tata Digital India Fund?

Accepted Answer

Investors can invest through the Tata Mutual Fund website, mutual fund distributors, or online platforms. Investment can be made via Systematic Investment Plan (SIP) or lump sum, as per individual preference.

Question 7

Is there a lock-in period or exit load in Tata Digital India Fund?

Accepted Answer

There is no lock-in period. However, an exit load may be applicable if units are redeemed within a specified period. Please refer to the latest Scheme Information Document (SID) for details.

Question 8

What is the investment approach of Tata Digital India Fund?

Accepted Answer

The fund follows a Growth at Reasonable Price (GARP) strategy, focusing on fundamentally sound companies within the digital and technology space that have long-term growth potential.

Question 9

Does the fund invest in semiconductor or digital infrastructure companies?

Accepted Answer

The fund may invest in semiconductor or digital infrastructure-related businesses if such companies fall within the scope of its digital investment strategy and meet the funds selection criteria.

Question 10

What should investors keep in mind before investing in a sector-focused mutual fund?

Accepted Answer

Sector-specific funds may carry higher risk compared to diversified equity funds due to concentrated exposure. Investors should evaluate their risk tolerance and investment goals and are advised to consult a financial advisor if needed.

Question 11

Does Tata Digital India Fund consider future technology trends in its portfolio?

Accepted Answer

The fund seeks to identify and invest in companies aligned with evolving technology trends such as artificial intelligence, cloud computing, digital platforms, and electronic payments, subject to the funds investment framework.

Key Measures**	Fund	Benchmark
Standard Deviation	17.47	20.31
Sharp Ratio	0.49	0.28
Portfolio Beta	0.79	NA
R Squared	0.9	NA
Treynor	0.91	NA
Jenson	0.34	NA

Portfolio Macauley Duration
Modified Duration
Average Maturity
YTM*	NA

				Current value of ₹10,000 invested
	Annualized (%)	NIFTY IT TRIBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)	Scheme	NIFTY IT TRIBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)
Since Inception	18.92%	14.78%	13.76%	₹53,462	₹37,953	₹34,804
Last 5 Years	23.59%	16.73%	17.92%	₹28,820	₹21,661	₹22,786
Last 3 Years	15.02%	9.56%	12.49%	₹15,215	₹13,150	₹14,236
Last 1 Year	-11.56%	-15.97%	-2.01%	₹8,847	₹8,407	₹9,799

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