The fund tracks Nifty India Digital Index which provides exposure to the growing Digital Space in India.
Tata Mutual Fund has launched Tata Nifty India Digital Exchange Traded Fund, an Open-Ended Exchange Traded Fund (ETF) tracking Nifty India Digital Index. The NFO opens on 14th March 2022 and closes on 25th March 2022. Purchase, Additional Purchase and Redemption of Units will be through the stock exchange.
The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the Nifty India Digital Index, subject to tracking error. The index selects top 30 companies based on market cap which align to the pre-defined set of basic industries. With NSE 500 as the universe for Nifty India Digital Index, basic industries are defined to cover companies which are focused on digital technology by the Index constructor NSE.
The fund tracks Nifty India Digital Index which provides exposure to the growing Digital Space in India including:
- Digital Change Agents which are transforming the traditional businesses by automation and reimagining modes of delivery.
- Digital Enablers which include Indian IT companies which enabling Digitisation of traditional businesses.
The last two years have witnessed increasing spend on Digital Transformation. Companies across businesses, economic activities and various consumption chains are investing in/getting impacted by Digital Transformation. New age companies are re-imagining businesses or the modes of delivery of various goods and services. These companies are benefiting from availability of risk capital.
Due to the pandemic, they have also seen higher penetration and wider acceptance. The digitisation is still in the early stages. New Age Digital Companies are yet to achieve important milestones. Traditional players are being challenged by the new age companies who are re-imagining businesses or the modes of delivery of various goods and services.
The fund suits those who are seeking investment in a passive fund providing exposure corresponding to Nifty India Digital Index. While making theme based investing, make sure you are aware of the risks that come along with thematic funds.