India is fast emerging as a global power in science and technology, with notable advancements in research, innovation, and IT infrastructure. Over the years, the country has become one of the most attractive destinations for technology investments worldwide, thanks to a thriving ecosystem built around R&D centers, multinational collaborations, and government initiatives.
A key driver of this success is India’s Information Technology (IT) sector, which is expected to grow by 13.2% in 2024, reaching US$ 138.9 billion. As global demand for IT services continues to rise, Indian companies are playing a leading role in software development, IT-enabled services, and digital transformation, positioning the sector as a major contributor to growth.
Funds like the Tata Digital India Fund offer a potential opportunity for investors to tap into this growth. Focused on long-term capital appreciation, this fund invests in leading IT companies in India, aligning with the country's journey towards becoming a digital superpower.
Key Features of the Tata Digital India Fund
Sector Focus
The fund seeks long term capital appreciation by investing at least 80% of its net assets in equity/equity related instruments of the companies in Information Technology Sector in India.
The fund aims to offer investors exposure to leading technology firms and emerging digital innovators. With India emerging as a major IT hub, the fund is positioned to potentially benefit from both domestic and international opportunities.
Sector Trends and Growth Potential
The Indian IT sector’s projected growth to US$ 138.9 billion by 2024 indicates potential opportunities. Key trends shaping this growth include:
- Increased global IT outsourcing
- Rising demand for AI, data analytics, and automation
- Expansion of digital infrastructure
- Growth of tech-enabled services across industries
These trends suggest potential for continued growth for IT companies in the coming years.
(Source: India Brand Equity Foundation (IBEF))
Why Choose Tata Digital India Fund?
Aligning with Digital India’s Momentum
India’s digital economy is experiencing growth, backed by initiatives like Digital India, which aims to create a $1 trillion digital economy by 2025. This fund offers investors an opportunity to invest in companies driving this transformation. (Source: India Brand Equity Foundation (IBEF))
Expert Fund Management
Meeta Shetty (Managing Since 09-Mar-21 and overall experience of 17 years), Kapil Malhotra (Managing Since 19-Dec-23 and overall experience of 14 years), the fund aims to benefits from the experience of a team with deep expertise in market trends, company fundamentals, and growth opportunities in technology.
Investment Strategy and Sector Focus
The scheme seeks to achieve its investment objective by investing at least 80% of its net assets in equity / equity related instruments of companies in Information Technology Sector in India or Overseas Indicative list of businesses which are part of Information Technology sector is as follows:
- IT services, consulting and outsourcing companies
- IT hardware and/or software companies
- IT infrastructure providers like data centres, leased line providers etc.
- Fin-tech companies
- Internet technology enabled services including e-commerce, technology platforms, IoT (Internet of Things) and other online services.
- Digital service providers
- Data and data solutions providers
Please note that the above list is indicative, and the Fund Manager may add such other businesses which fall part of Information Technology sector. For more information read the scheme information document.
India’s Global IT Edge
India, as the largest provider of IT outsourcing solutions, holds a notable global market share. Multinational corporations rely on Indian tech talent and services, contributing to a pipeline of revenue and innovation. For investors looking to align their portfolios with India’s technology-driven growth, the Tata Digital India Fund offers an opportunity. With its focus on IT sector, this fund is well-suited for investors with a long-term investment horizon and a higher risk appetite.
Ready to invest in the future of Digital India? Explore the Tata Digital India Fund and be part of a journey that connects innovation, opportunity, and wealth creation.
Data Source: IBEF - https://www.ibef.org/industry/science-and-technology
This product is suitable for investors who are seeking*: | Tata Digital India Fund | Nifty IT TRI |
• Long Term Capital Appreciation. • Investment in equity/equity related instruments of the companies in Information Technology Sector. |
It may be noted that risk-o-meter specified above is based on the scheme characteristics. The same shall be updated in accordance with provisions of SEBI circular dated October 5, 2020 on Product labelling in mutual fund schemes on ongoing basis.
Mutual Fund Investments are subject to market risks, read all Scheme related documents carefully.