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Tata Digital India Fund was launched on 28th Dec 2015 with an aim to invest approximately 80% of assets in equity and equity related instruments of Information Technology sector-based companies in India for long-term capital appreciation. Mr Meeta Shetty and Miss Sailesh Jain handle the fund's portfolio. Ms Meeta Sheety is the assistant fund manager of the fund supporting Mr Jain, who has more than 15-years of experience in mutual fund and broking. Tata Digital India Fund has outperformed in last two-years which has increased the expectations of the investors to get higher returns in future. So, can we expect Tata Digital India Fund to generate sustainable growth in future?
Experts at MySIPonline have analysed the fund’s performance based on various parameters. Here is the detailed analysis of Tata Digital India Fund’s future growth.
Know its Category Tata Digital India Fund is a thematic fund which predominantly invests in a particular sector. Thematic funds are highly affected by the economic conditions and depend on the performance of the particular sector. When the economy favours the sector, the respective thematic funds grow and vice-versa. Considering the category of Tata Digital India Fund, it has high category risk as it depends on the performance of the particular sector.
Present Performance of IT-sector In the last 2-years, the Information Technology sector has outperformed and generated exceptional returns to the investors. The reasons for Technology sectors’ lacklustre performance was rupee depreciation, share buyback aplenty, and bonus issues. It has made Tata Digital India Fund growth generate 33.85% returns in last one year. In 2017, Tata Digital India Fund has grown to 21.81% which is higher than the category’s average and benchmark.
But, we couldn’t expect to confront the same situations in future that can make Tata Digital India Fund perform.
Performance in Unfavorable Conditions During unfavourable market conditions in 2016, Tata Digital India Fund was able to maintain the losses below the benchmark but couldn’t able to beat the category average. Further, in most of the quarters of 2017, the fund has performed 1% negative. So, we couldn’t say explicitly whether the fund will sustain the same pace in future or not based on such negative performance.
What Are the Future Growth Aspects? We don't have much of record about Tata Digital India Fund as it has been launched in 2015. But, considering its performance, and category, we expect the fund to grow in future with moderate pace.
Should You Invest for a Long-Term? Tata Digital India Fund aims for long-term capital appreciation for investors. No doubt Tata Digital India Fund has generated good returns till yet as it is performing positively in recent years, investing in for a long-term can be a good option for investors as the fund invests in equity instruments and some portion in cash equivalents to balance the portfolio.
Overall, considering the parameters as mentioned above, you can make a planned decision to invest in Tata Digital India Fund for a long-term growth. If you have any doubt regarding the regular plan, you can mention in the below-provided link to get assistance from MySIPonline as soon as possible.