The Tata Digital India Fund is an open-ended scheme, which appreciates long-term capital through investments in IT companies in India in equity and equity-related securities. It will invest at least 80 percent in the companies, while up to 20 percent of assets can be invested in debt and money market instruments. This scheme will fundamentally invest in proper IT firms. Tata Digital India Fund – which is managed by Tata Mutual Fund, performed well.
There is a massive opportunity in the technology industry in a technologically driven world where machines power everything, and Tata Digital India Fund (G) is a platform where you can be able to capitalize on these opportunities. You can easily park your money in companies that are engaged in the creation or advancement of new technologies through the Digital India Fund (G).
Objective of TATA Digital (G)
The primary objective of TATA Digital (G) India Fund Growth is to connect the growing technology industry with investors, providing them a platform where they can increase their wealth manifold.
The Tata Digital Fund is a sectoral fund focused on tech firms. That is a new fund, and it seems there was the right timing for the launch. While returns look good overall, they are slightly better than the benchmark-nifty IT TRI. So far, the fund has gone into a bull phase too much, and we have no idea how this will happen in the inevitable bear period.
You will do a big favor with your financial plan by first choosing a category of mutual funds of your choice and then looking at long-track funds in that category. Please do not go alone on returns.
Invest in any fund for just three years and check its performance every year. Now, pharma mutual funds are suitable for the coming 2-3 years. Tata Digital has grown in the last year, so the returns are now minimal. For me, this is a good fund.
Any mutual fund that focuses on a limited sector, such as the digital sector or the pharmaceutical sector or the metal sector, is a high-risk fund with high returns. Also, choose any multi-cap fund for 10-20 years.
I do not like to have a sectoral fund for long term investments like 20 or 30 years. For me, sectoral funds are what I am going to invest in when they are underperforming, but their prospects look positive. When the economy is good, I redeem them to make a profit when the market is favorable.
Note: it is better to keep a close watch on thematic funds unless you are a money market expert.
Conclusion: Tata Digital MF is a thematic fund. It is, in this case, a trading fund and an IT fund. In the last one year, the fund has given a spectacular return of 27 percent. However, each thematic fund depends on market conditions, as currently due to depreciation of the IT rupee, and pharmaceutical sectors do well due to exports.