Tata Digital India Fund

Tata Mutual Fund’s Equity mutual fund scheme is known as the Tata Digital India Fund Direct-Growth. This scheme was launched on December 4, 2015, and Meeta Shetty and Venkat Samala oversee the management of the fund. The minimum first investment for a lump sum payment is Rs 5000, while the minimum initial investment for a SIP is Rs 150, and there is no lock-in period.

The objective of the scheme’s investments is to achieve long-term capital appreciation by allocating at least 80 % of the total of its net assets to equities and equity-related instruments issued by Indian firms operating in the information technology sector. There is no promise or guarantee, however, that the Scheme’s investment goal will be met.

Pros & Cons

How to invest in Tata Digital India Fund Direct-Growth?

Using 5paisa, you can easily invest in the Direct Growth of the Tata Digital India Fund. The whole procedure could take little time, and no paperwork is necessary. A few simple steps are as follows:

What is the expense ratio of the Tata Digital India Fund Direct-Growth?

Mutual funds have yearly management fees, or expense ratios, that are paid to the mutual fund firm. Fund returns are net of the expense ratio, which is expressed as a percentage of AUM. Thus, it is always preferable to invest in a fund with a lower cost ratio, since this will result in a lesser percentage of the fund’s profits being deducted.

Tata Digital India Fund’s direct plan has an expense ratio of 0.31%.

Who should invest in Tata Digital India Fund Direct-Growth?

• Tata Digital India Fund is not suitable for amateur investors.
• Investors that have a sophisticated understanding of macro trends and who favour making selected bets for greater returns compared to other Equity funds should consider Tata Digital India Fund. Even if the market as a whole is doing well, these investors should nevertheless be prepared for the risk of moderate to severe losses in their assets.
• This fund is a good option for those who are looking to diversify their IT-related holdings.

What are the benefits of investing in the Tata Digital India Fund Direct-Growth?

Though a high-risk fund, it is widely acknowledged that the Tata Digital India Fund is among the most successful digital funds in India. When compared to other sector funds, Tata Digital India Fund’s returns stand out as very impressive.

• Rising Industry

When it comes to India’s overall economic expansion, the IT industry has been a major factor. Tech businesses in India stand to gain greatly from the government’s ‘Digital India’ initiative and the country’s rising desire for cutting-edge gadgets.

• Returns

By investing in the technology sector, which is one of the fastest growing, technology funds hope to beat stocks benchmark indexes. There is a risk that the fund’s returns will take a big knock if this strategy doesn’t work, but there’s also a chance that it will exceed the market as a whole if the underlying industry has rapid growth. Therefore, the potential benefits are outweighed by the potential dangers

• Exposure To Industry Giants

When the IT industry is thriving, investors should expect a premium return on their money compared to the market average and other mutual funds. There has been nothing but good news coming from the IT industry throughout the years. As an added bonus, IT funds may invest in IT businesses of varying market caps.

• Pays in the Long Run

If you want to see substantial returns on your investments, you need to have a long-term investing perspective with Tata Digital India Fund.