Tata Digital India Fund Idcw Payout Direct Plan

About Tata Digital India Fund – IDCW Payout – Direct Plan

The Tata Digital India Fund – IDCW Payout – Direct Plan is an open-ended initiative with a technological focus. This scheme is ideal for investors with great awareness of macrotrends and a predisposition to opting for selective bets for higher returns versus other equity funds. At the same time, even if the overall market is performing well, investors are advised to be prepared for moderate to severe investment losses.

Key Parameters

The Tata Digital India Fund – IDCW Payout – Direct Plan necessitates a minimum commitment of INR 5,000, with additional investments in multiples of Re. 1. The fund’s expense ratio, including GST, is 0.31%. This fee is levied on investors for fund administration. The exit burden is 0.25% if redeemed within a month or 30 days of the allocation date. Investors may redeem their money anytime due to the absence of a lock-in period.

Taxation

If an investor sells one year after the acquisition date, they will attract tax on Long-Term Capital Gains (LTCG). If LTCG exceeds Rs. 1 lakh, then a 10% tax rate is liable. There is no mention of any appropriate surcharge or cess. If property sales are witnessed within a year of purchasing, an investor obtains Short–Term Capital Gains (STCG). The current tax rate is 15%, excluding any cess or levy.

Holdings

The Tata Digital India Fund – IDCW Payout – Direct Plan makes significant investments in the technology sector. An investor receives a well-diversified portfolio with communication, technology, service, cash, and capital goods assets. The top holdings of the Tata Digital India Fund – IDCW Payout – Direct Plan are as follows:

• Infosys Ltd.
• Tata Consultancy Services Ltd.
• LTIMindtree Ltd.
• HCL Technologies Limited
• Bharti Airtel Ltd.
• Tech Mahindra Ltd.
• Wipro Ltd.
• Persistent Systems Ltd.
• Cyient Ltd.
• INVESCO NASDAQ 100 ETF QQQM

Returns

Since its inception, the mutual fund has produced excellent returns. The annualised returns over the last five years have been 20.09%, while the same over the previous three years have been 36.22%. It should be emphasised that mutual fund returns are subject to market risks and that past performances cannot be used to predict future returns.

Investment Objective

The Tata Digital India Fund – IDCW Payout – Direct Plan’s investment goal is to seek Long-Term Capital Gains (LTCG). The scheme invests at least 80% of its net assets in equity and equity-related instruments in the Information Technology (IT) sector, specifically software, ITeS, and hardware. The Tata Digital India Fund – IDCW Payout – Direct Plan involves high risk.

Minimum Investment and Lock-in Period

The Tata Digital India Fund – IDCW Payout – Direct Plan requires a minimum investment of INR 5,000 and a minimum SIP of INR 1,000, with subsequent multiples of Re 1. Because there is no lock-in period, investors can withdraw their money whenever they want. The Tata Digital India Fund – IDCW Payout – Direct Plan is an ideal option for investors not wishing to be limited by a lock-in period.

AMC Information

Tata Mutual Fund was established in 1994 to give clients investment opportunities to help them with wealth creation and financial planning. Since its inception, it has become one of India’s major AMCs, offering various mutual fund schemes, including debt, hybrid, and equity funds, along with closed-ended and solution-oriented schemes. It aspires to achieve consistent profits on its product offerings with the help of its good risk management and intellectual capital. The fund managers at Tata Mutual Fund juggle excellence and strict risk controls.