Tata Mutual Fund launches Tata Nifty India Digital Exchange Traded Fund

Tata Mutual Fund launched Tata Nifty India Digital Exchange Traded Fund - an open-ended Exchange Traded Fund replicating / tracking Nifty India Digital Index. The new fund offer or NFO opened for subscription on 14 March, and it will close on 25 March.

The index will select top 30 companies, based on market cap which align to the pre-defined set of basic industries.

Speaking on the launch, Meeta Shetty, Senior Analyst & Fund Manager, Tata Mutual Fund, said, “Tata Nifty India Digital Exchange Traded Fund is a passive portfolio replicating a pre- defined Digital India Index. Current characteristics of Nifty India Digital Index based on its index construction methodology represents the digital change agent companies and digital enablers. Digital transformation is still in the early stages and we expect more new age companies to achieve scale, raise capital and get listed over the next 3-5 years. “

“As this transformation unfolds and the new age companies become a more prominent part of the economy and equity markets, we see the emergence of new hybrid segments like consumer tech, fintech, edtech, etc. The portfolio, over a period, would have adequate representation to Digital enablers as well i.e. IT Services/ Cloud transformation / SaaS companies. The Indian IT services companies which are ahead in digital and cloud capabilities will also be an important part of this segment along with companies which are in the automation/robotics/IoT space”.

As a result of the structure of the index, we believe that the Tata Nifty India Digital Exchange Traded Fund will be able to leverage on the evolving digital scenario in the long term, she added.