The Tata Digital India Fund is a sectoral fund launched on December 28, 2015, by Tata Mutual Fund. It primarily invests in companies within India’s Information Technology (IT) sector, aiming for long-term capital appreciation by allocating at least 80% of its net assets to equity and equity-related instruments in this sector .
Fund Overview
- Fund Type: Open-ended equity scheme
- Category: Sectoral – Technology
- Benchmark: NIFTY IT Total Return Index
- Risk Level: Very High
- Fund Managers: Meeta Shetty, Kapil Malhotra
- Minimum Investment: ₹5,000 (lump sum)
- Additional Investment: ₹1,000
- SIP Investment: ₹100
- Exit Load: 0.25% if redeemed within 30 days
- Lock-in Period: None
- Expense Ratio: 1.60%
- Regular Plan – Growt NAV: ₹44.54
- Direct Plan – Growth NAV: ₹51.76
Fund Managers of Tata Digital India Fund
As of May 2025, the Tata Digital India Fund is managed by Meeta Shetty and Hasmukh Vishariya. Previously, Kapil Malhotra served as a co-fund manager until early 2025.
Meeta Shetty
- Role: Lead Fund Manager
- Managing Since: November 9, 2018
- Experience: Over 17 years in equity research and fund management
- Background: Prior to joining Tata Mutual Fund, Meeta worked with Kotak Securities, HDFC Securities, and other financial institutions. She holds a Bachelor’s degree in Economics and is a CFA charterholder. Her investment philosophy emphasizes “growth at a reasonable price” (GARP), focusing on businesses with strong fundamentals and reasonable valuations.
Hasmukh Vishariya
- Role: Co-Fund Manager
- Managing Since: March 2025
- Experience: Over 7 years in the financial industry
- Background: Hasmukh is a Chartered Accountant with experience in investment management. Before joining Tata Mutual Fund, he was associated with Star Union Dai-ichi Life Insurance Ltd.
The transition in fund management, with Hasmukh Vishariya taking over from Kapil Malhotra in March 2025, reflects Tata Mutual Fund’s strategic approach to leveraging diverse expertise in managing sectoral funds.
Who Should Invest?
Ideal For:
- Aggressive investors with:
- High risk tolerance,
- Interest in thematic investing,
- 5+ year time horizon.
Not Ideal For:
- First-time investors,
- Those needing near-term returns or income,
- Risk-averse individuals.
Verdict
Tata Digital India Fund is a strong, well-managed thematic fund with solid long-term performance and relatively low expenses (in the direct plan).
However, it demands a clear understanding of sectoral risks. If you’re bullish on India’s digital future and can tolerate volatility, this fund could be a strategic satellite allocation in your portfolio.
Tata Digital India Fund Portfolio
As of March 31, 2025, the Tata Digital India Fund maintains a concentrated portfolio predominantly in the Indian technology sector, reflecting its thematic investment strategy.
Portfolio Overview
- Total Equity Holdings: 38 stocks
- 5 Stock Weight: 57.66%
- 10 Stock Weight: 76.29%
- 3 Sector Allocation: 84.99%
Market Capitalization Breakdown:
- Large Cap: 62.01%
- Mid Cap: 6.93%
- Small Cap: 14.31%
Cash & Equivalents: 2.14%
Total Equity Exposure: 97.86%
Top 10 Holdings
| Company | Sector | Allocation (%) |
|---|---|---|
| Infosys Ltd. | IT Services | 19.83% |
| Tata Consultancy Services Ltd. | IT Services | 13.57% |
| Tech Mahindra Ltd. | IT Services | 9.22% |
| Wipro Ltd. | IT Services | 7.82% |
| HCL Technologies Ltd. | IT Services | 7.22% |
| Zomato Ltd. | E-commerce | 5.33% |
| LTIMindtree Ltd. | IT Services | 4.04% |
| Persistent Systems Ltd. | IT Services | 3.81% |
| Firstsource Solutions Ltd. | IT-enabled Services | 3.13% |
| Bharti Airtel Ltd. | Telecom Services | 2.32% |
Additional Notable Holdings
Beyond the top 10, the fund also holds positions in:
- PB Fintech Ltd. (Fintech): 2.02%
- Sonata Software Ltd. (IT Services): 1.64%
- Newgen Software Technologies Ltd. (IT-enabled Services): 1.40%
- Info Edge (India) Ltd. (Internet Services): 1.11%
- Birlasoft Ltd. (IT Services): 1.07%
Sectoral Allocation
The fund’s investments are primarily concentrated in:
- Technology: 77.43%
- Consumer Cyclical: 6.79%
Tata Digital India Fund Returns
| Investment Period | Direct Plan – Growth | Regular Plan – Growth |
|---|---|---|
| 1 Week | 0.62% | 0.62% |
| 1 Month | -0.39% | -0.39% |
| 3 Months | -12.43% | -12.43% |
| 6 Months | -13.43% | -13.43% |
| Year-to-Date (YTD) | -17.59% | -17.59% |
| 1 Year | 9.14% | 7.74% |
| 2 Years | 20.41% (Annualized) | 20.41% (Annualized) |
| 3 Years | 11.41% (Annualized) | 9.10% (Annualized) |
| 5 Years | 29.91% (Annualized) | 26.97% (Annualized) |
| Since Inception | 19.22% (Annualized) | 17.36% (Annualized) |
SIP Returns (₹5,000 Monthly Investment)
| Investment Duration | Direct Plan – Growth | Regular Plan – Growth |
|---|---|---|
| 1 Year | ₹48,204 (-19.66%) | ₹48,204 (-19.66%) |
| 2 Years | ₹124,980 (4.15%) | ₹124,980 (4.15%) |
| 3 Years | ₹199,332 (10.74%) | ₹199,332 (10.74%) |
| 5 Years | ₹341,940 (13.98%) | ₹341,940 (13.98%) |
Summary
The Tata Digital India Fund has demonstrated strong long-term performance, particularly in the 5-year horizon, with the Direct Plan – Growth option delivering an annualized return of 29.91%.
However, recent short-term returns have been volatile, reflecting the inherent risks associated with sectoral funds focused on the technology sector.
Investors with a high-risk appetite and a long-term investment horizon may find this fund suitable for capitalizing on the growth potential of India’s digital and technology sectors.
Tata Digital India Fund Dividend
As of May 2, 2025, the Tata Digital India Fund offers both Direct and Regular plans under the Income Distribution cum Capital Withdrawal (IDCW) option, commonly known as the dividend option.
Dividend History
The Tata Digital India Fund’s IDCW option has provided periodic distributions to its investors. However, specific details about the frequency and amounts of these distributions are not readily available in the provided sources.
Summary
- NAVs: As of April 29, 2025, the NAV for the Direct Plan – IDCW is ₹51.86, and for the Regular Plan – IDCW is ₹44.03.
- Dividend Details: Specific dividend amounts and frequencies are not detailed in the available sources.
- Recommendation: For the most accurate and detailed dividend history, refer to the official Tata Mutual Fund website or trusted financial platforms.
Tata Digital India Fund Regular Growth
Here is a comprehensive overview of the Tata Digital India Fund – Regular Plan (Growth Option) as of early 2025:
Performance Overview
| Period | Absolute Returns | Annualized Returns |
|---|---|---|
| 1 Year | 7.11% | 7.05% |
| 3 Years | 34.21% | 10.30% |
| 5 Years | 196.65% | 24.26% |
| Since Inception | 375.51% | 18.53% |
Summary
The Tata Digital India Fund – Regular Plan (Growth Option) is a sectoral equity fund focusing on the technology sector. It has demonstrated strong long-term performance, particularly over the 5-year horizon, with an annualized return of 24.26%.
However, investors should be aware of the inherent volatility associated with sectoral funds. This fund is suitable for investors with a high-risk appetite and a long-term investment horizon who are looking to capitalize on the growth potential of India’s digital and technology sectors.
Tata Digital India Fund Direct Growth
Here is a comprehensive overview of the Tata Digital India Fund – Direct Plan (Growth Option) as of early 2025:
Performance Overview
| Period | Absolute Returns | Annualized Returns |
|---|---|---|
| 1 Year | 6.76% | 6.76% |
| 3 Years | 32.45% | 9.81% |
| 5 Years | 226.45% | 26.66% |
| Since Inception | 431.72% | 19.92% |
Summary
The Tata Digital India Fund – Direct Plan (Growth Option) is a sectoral equity fund focusing on the technology sector. It has demonstrated strong long-term performance, particularly over the 5-year horizon, with an annualized return of 26.66%.
However, investors should be aware of the inherent volatility associated with sectoral funds. This fund is suitable for investors with a high-risk appetite and a long-term investment horizon who are looking to capitalize on the growth potential of India’s digital and technology sectors.
Strengths of Tata Digital India Fund
- Focused Exposure to the Digital Sector: The fund capitalizes on the long-term growth potential of India’s technology and digital services sector, including IT, software, and e-commerce companies.
- Strong Historical Returns: Over a 5-year period, the fund has delivered impressive returns, especially in the Direct Growth plan, outperforming many diversified equity funds.
- Low Expense Ratio (Direct Plan): With an expense ratio of around 0.42% for the Direct Growth plan, it is cost-effective compared to its peers, helping investors retain more of their returns.
- High-Quality Portfolio: The fund holds large and mid-cap tech companies like Infosys, TCS, and HCL, which have strong fundamentals and global client bases.
- Managed by Experienced Professionals: The fund is managed by seasoned fund managers with a deep understanding of the tech space, contributing to strategic stock picking.
Risks of Tata Digital India Fund
- Sector Concentration Risk: The fund is heavily concentrated in the technology sector, making it vulnerable to sector-specific downturns, such as regulation changes or global IT demand shocks.
- High Volatility: Due to its narrow focus and aggressive growth strategy, the fund is subject to significant price swings and market cycles.
- Not Suitable for Short-Term Goals: Returns can be inconsistent in the short term; it’s best suited for long-term investors with a high-risk appetite.
- Global Exposure Risk: Many companies in the portfolio derive revenue from global markets, so the fund is indirectly exposed to currency fluctuations and international macroeconomic trends.
- Digital Valuation Risks: Stocks in the digital and tech space often trade at high valuations, which could correct sharply if earnings don’t meet expectations.
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