Zamana Hai Digital

Digital is the New Black! With the huge adoption of technology, Digital India is on the rise.

India's Digital Economy Is estimated to touch $1 Trillion by 2030*

Game is up, with nearly all payments going digital, from small town to big city, fueling the digital economy.

India has emerged as the 3rd largest ecosystem for startup with 108 unicorn as on 31st May 2023#

Technology is disrupting traditional industries and creating new ones in India, such as the e-commerce, fintech, and edtech sectors.

At the end of the calendar year 2023, UPI’s total transaction volume is expected to stand at 83.75 Billion.^

Large-scale, rapid expansion of mobile and internet networks to bridge the digital divide, with the Indian government targeting 900 million internet users by 2025@.

* https://www.bain.com/about/media-center/press-releases/2023/indias-internet-economy-to-reach-us$1-trillion-by-2030-google-temasek-and-bain--company-report/ | # https://www.investindia.gov.in/indian-unicorn-landscape | ^ https://www.nic.in/blogs/digital-payments-driving-the-growth-of-digital-economy/ | @ World Bank, 2021; Government of India, 2019; Telecom Regulatory Authority of India, 2021-2022

Decoding the Jargons

ETF

ETFs are type of mutual funds; which are traded on stock exchanges. They track stock market indices passively.

FoF

A Fund of Fund is a mutual fund scheme that invests in other mutual funds or ETFs, allowing the fund manager to manage a diversified portfolio.

ETF FoF

An ETF fund of funds is a type of investment fund that primarily invests in a portfolio of ETFs rather than individual stocks or other assets. In essence, it is a fund that invests in other ETFs.

Closer look at the Investment Universe

Tata Nifty India Digital ETF Fund of Fund is an open-ended fund of fund scheme investing in units of Tata Nifty India Digital Exchange Traded Fund.

The underlying Fund i.e Tata Nifty India Digital Exchange Traded Fund will try to replicate the constituent of the Nifty India Digital Index (TRI).

The Scheme may also invest a small portion of its corpus in Debt & Money Market Instruments including units of liquid / debt / money market Mutual Funds.

How does Nifty India Digital Index work?

The universe
Companies part of basic industries and defined to focus on digital technology that could be categorised into the digital change agents or enabler from the Nifty 500 index
Stock Selection
Index selects Top 30 companies based on market cap belonging to the pre-defined set of basic industries
Use of AI & ML
Index may use Artificial Intelligence (AI)/Machine Learning (ML) driven tools to identify companies within the universe
Capping
Weight of index constituents are capped and reviewed on a quarterly basis:
  • Sector weights are capped at 50%
  • Stock weights are capped at 7.50%
Rebalancing & IPOs
  • The index rebalances quarterly.
  • Reconstitution is done semi annually
  • IPO inclusion is considered based post a listing period of 1-3 months
The universe
Stock Selection
Use of AI & ML
Capping
Rebalancing & IPOs
Skip this section
Companies part of basic industries and defined to focus on digital technology that could be categorised into the digital change agents or enabler from the Nifty 500 index
Index selects Top 30 companies based on market cap belonging to the pre-defined set of basic industries
Index may use Artificial Intelligence (AI)/Machine Learning (ML) driven tools to identify companies within the universe
Weight of index constituents are capped and reviewed on a quarterly basis:
  • Sector weights are capped at 50%
  • Stock weights are capped at 7.50%
  • The index rebalances quarterly.
  • Reconstitution is done semi annually
  • IPO inclusion is considered based post a listing period of 1-3 months
Skip this section

Why this fund?

1. Aims to make the most out of India's digital Industry, which is at the spotlight today and is projected to grow at a rapidly increasing rate.

2. A niche offering in the digital arena, investing in the top 30 firms classified as Digital Change Agents such as Fintech, Foodtech etc. and Digital Enablers like IT, Automation etc.

3. Emphasis on controlling risks with sector and stock capping with periodic index rebalancing and reconstitution.

4. The fund is set to invest across sectors like IT, Consumer Services, Telecommunication and Financial Services which are at the forefront of Digital evolution.

Who should invest?

Suitable for investors

Optimistic about the long-term growth potential of the digital economy in India.

Considering investing in a domestic fund of funds.

Looking for a diversified exposure to the digital sector, without having to pick individual stocks.

Willing to invest for the long term (preferably 5 years or more).

Seeking long-term potential wealth creation opportunities.

Scheme Details

Scheme Name TATA NIFTY INDIA DIGITAL ETF FUND OF FUND
Investment Objective To provide long-term capital appreciation by investing in Tata Nifty India Digital Exchange Traded Fund. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.
Type of Scheme An Open ended fund of fund scheme investing in Tata Nifty India Digital Exchange Traded Fund.
Fund Manager Meeta Shetty
Benchmark Nifty India Digital TRI Index
Minimum Investment Amount Rs. 5,000/- and in multiples of Re. 1/- thereafter.
Minimum Additional Investment Amount Rs. 1,000 and in multiples of Re. 1/- thereafter
Load Structure
  • Entry load: N.A
  • Exit Load:
    • Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal amount or switched out amount is not more than 12% of the original cost of investment - Nil
    • Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal amount or switched out amount is more than 12% of the original cost of investment - 1%
    • Redemption/Switch-out/SWP/STP after expiry of 365 days from the date of allotment - Nil
Tata Nifty India Digital ETF Fund of Fund is suitable for investors who are seeking*: Tata Nifty India Digital ETF FOF Nifty India Digital TRI

  • Long Term Capital Growth.
  • Investment in Tata Nifty India Digital Exchange Traded Fund

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Investors understand that their principal will be at Very High Risk

Product Label

This product is suitable for investors who are seeking*:

  • Long Term Capital Growth.
  • Investment in Tata Nifty India Digital Exchange Traded Fund

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

(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.)

Tata Nifty India Digital ETF FOF

Investors understand that their principal will be at Very High Risk

Nifty India Digital TRI

Underlying Scheme : Tata Nifty India Digital Exchange Traded Fund, an open-ended Exchange Traded Fund replicating/tracking Nifty India Digital Index

Tata Nifty India Digital Exchange Traded Fund is suitable for investors who are seeking*: Tata Nifty India Digital ETF Nifty India Digital TRI

  • Long Term Capital Growth.
  • An exchange traded fund that aims to provide returns that correspond to the returns provided by Nifty India Digital Index, subject to tracking error.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Investors understand that their principal will be at Very High Risk

Product Label

Tata Nifty India Digital Exchange Traded Fund is suitable for investors who are seeking*:

  • Long Term Capital Growth.
  • An exchange traded fund that aims to provide returns that correspond to the returns provided by Nifty India Digital Index, subject to tracking error.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Tata Nifty India Digital ETF

Investors understand that their principal will be at Very High Risk

Nifty India Digital TRI

(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.)

Corporate Office Address:

Tata Asset Management Private Limited, 19th floor, Parinee Crescenzo, ‘G’ Block, Bandra Kurla Complex, Opposite MCA Club, Bandra (E), Mumbai – 400051

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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