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Tata Mutual Fund is launching a fund of fund, Tata Nifty India Digital ETF Fund of Fund, that invests in Nifty India Digital Exchange Traded Fund.

The New Fund Offer (NFO) period for the Tata Nifty India Digital ETF Fund of Fund is from March 25th 2022, to April 8th 2022.

Objective

The Tata Nifty India Digital ETF Fund of Fund is an open-ended fund of fund scheme investing in the Tata Nifty India Digital Exchange Traded Fund. Furthermore, the investment objective of Tata Nifty India Digital ETF is to generate returns that correspond to the total returns of the securities as represented by the Nifty India Digital Index, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Tata Nifty India Digital ETF Fund of Fund Details

Fund NameTata Nifty India Digital ETF Fund of Fund
NFO Opening DateMarch 25th 2022
NFO Closing DateApril 8th 2022
Re-open DateNA
Type of FundOpen-ended Fund of Fund Scheme
Fund ManagerMs Meeta Shetty
Minimum Investment AmountINR 5,000
Minimum Additional Purchase AmountNA
Exit Load0-1%
SuitabilityVery High
BenchmarkNifty India Digital Index (TRI)
Plans and OptionsRegular Plan & Direct Plan
Note: 
  • All additional investment amounts should be multiple of INR 1/-
  • Exit Load:
    • For withdrawals before 365 days, where the amount is not more than 12% of the original cost of investment- Nil
    • For withdrawals before 365 days, where the amount is more than 12% of the original cost of investment: 1%

Who Can Invest in Tata Nifty Digital ETF FoF?

Tata Nifty India Digital ETF FoF is an open-ended scheme that invests in Tata Nifty India Digital ETF. The ETF aims to track the Nifty India Digital Index closely. Furthermore, the Nifty India Digital Index aims to closely track the performance of stocks that broadly represent the digital theme. The companies are part of industries like software, IT-enabled services, e-commerce, telecom services companies, industrial electronics, etc.

Since the fund invests in the ETF scheme that tracks digital companies in India, it is a high-risk investment. Thus, it is suitable for investors seeking long term wealth creation.

Therefore, investors seeking exposure to the technology sector and are risk-takers can consider investing in the scheme. However, one must have a long term investment horizon (5+ years) to be able to enjoy the returns.

Fund Manager

Ms Meeta Shetty

Ms Shetty joined Tata MF in 2017. Currently, she is a Senior Research Analyst and also a Fund Manager at Tata AMC. She has more than 15 years of industry experience. Before joining Tata AMC, she was associated with Kotak Securities Ltd. She also worked with HDFC Securities, Asian Market Securities, Dalal Broacha Stock Broking, and Karvy Stock Broking. Ms Shetty is a CFA charter holder from CFA Institute USA. She also holds a degree in Bachelor in Economics. She manages the Tata Digital India Fund, Tata Large and Mid Cap Fund, Tata Nifty India Digital ETF, and also Tata India Pharma and Healthcare Fund.

Asset Allocation

Tata Nifty India Digital ETF Fund of Fund invests in Tata Nifty India Digital Exchange Traded Fund. The following is the indicative asset allocation of the fund.

Types of InstrumentsIndicative Allocation MinimumIndicative Allocation MaximumRisk Profile
Equity and Equity Related securities of Tata Nifty India Digital ETF95%100%Medium to High
Debt and Money Market Instruments05Low to Medium

Concluding Remarks

Tata Nifty India Digital ETF Fund of Fund invests in Tata Nifty India Digital ETF. Tata Nifty India Digital ETF aims to replicate the Nifty India Digital Index TRI performance. Furthermore, The ETF fund primarily invests in the same stocks and proportions as Nifty India Digital Index. Thus, the fund aims to invest in the ETF to generate long term wealth for investors. It is a high-risk investment option since the fund gets exposure to technology stocks. Hence, it is advisable to have a long-term investment approach to average out the short-term market volatility.

Investors who understand the technology sector and also monitor the performance can consider investing in this scheme. Furthermore, the scheme is ideal for investors looking for exposure to the technology sector. Also, the fund of fund structure is ideal for systematic investing. Moreover, investing in the Tata Fund of Fund is a hassle-free and low-cost investing solution.

Since it is a pure equity scheme and technology sector-focused, a long-term investment horizon is necessary.

  • TATA Nifty India Digital ETF Fund of Fund
  • TATA Nifty India Digital ETF Fund of Fund 1
  • TATA Nifty India Digital ETF Fund of Fund 2
  • TATA Nifty India Digital ETF Fund of Fund 3

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