This Tata Mutual Fund Scheme Has Given 199.56% Returns In 5-Years

Tata Digital India Fund - Direct Plan - Growth has given absolute return of 199.56% over a period of five-years. This mutual fund scheme was launched in 2015 December, and is currently managed by Meeta Shetty as the lead fund manger.

Details of Tata Digital India Mutual Fund

Tata Digital India Mutual fund is an equity mutual fund that has an investment objective to seek long term capital appreciation by investing at least 80% of its net assets in equity/equity related instruments of companies in the Information Technology (IT) sector. The asset size of the fund is Rs 6,463.67 crore and its current net asset value is Rs 37.49 per unit.

Portfolio details of Tata Digital India Mutual Fund

The portfolio of Tata Digital India Mutual Fund Scheme holds 93.4% equity stocks of IT sector (Software, IteS and Hardware), and 6.6% in cash. The company even has exposure to stocks of foreign IT companies Amazon, Accenture, Adobe, Microsoft, Alphabet and Globant, besides the Indian giants Infosys, TCS, HCL and Tech Mahindra.

Performance of Tata Digital India Mutual Fund

In 3 and 5 years the scheme has given absolute returns of 117.57% and 117.57% respectively. While its annualised returns are 29.55% and 24.51% higher than the category average returns of 17.33% and 10.62% for the same period. Since inception the scheme has given annualised return of 20.32%.

If you had done a monthly SIP of Rs 10,000 for five years, you would have built a corpus of Rs 10.75 lakhs. For your total investment of Rs 6 lakhs, you would have fetched a return of 79.29% in five years. However, please note that past performance is not indicative of future good returns.

Suitability of the scheme

Based on its objective, Tata Digital India Mutual Fund, is suitable for investors who want to invest in equity schemes for longer investment horizon provided they have an appetite to deal with extremely high risks.

Risk ratios of Tata Digital India Mutual Fund

Tata Digital India Mutual Fund has a Beta of 0.94 to describe its volatility, which means that the weighted average of the beta of stocks held in the portfolio. It measure the measures the movement of a stock in relation to the overall market movement. Since the beta of the fund is less than 1, it indicates, lower volatility compared to the overall market.

Compared to the benchmark S&P BSE IT TRI Index, the scheme has outperformed, which is denoted by Alpha. Tata Digital Mutual Fund has an alpha of Alpha 4.13, higher than 1, which indicates outperformace. But being a sectoral fund, its highly concentrated with equity stocks of one specific sector, any kind of major announcements pertaining to digital space or technology from regulatory body or any other event can adversely affect the performance of the scheme.

So, please note the investment risk is extremely high. We are merely sharing the facts about the funds and not providing any recommendations.

Disclaimer

Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.