Tata Digital India Fund was among a few schemes which delivered outstanding returns in 2018 as the market conditions were decent. It was the best performing mutual fund in 2018 and nearly provided 25% annual gains. Not only in 2018 but this particular scheme has always been an apple of the eye for the sectoral investors. However, the journey of this high rated scheme in 2019 has been full of ups and downs. The market conditions have been volatile but this scheme has weathered volatility since inception so why not now? Keep reading as the experts at MySIPonline explain the key reasons and the expectations from the scheme in the near future.
A Must Know for IT Investors
India is the largest exporter of IT in the world. According to the data released by NASSCOM, 79% of the total revenue of the Indian IT companies come from the exports. This does not mean that the IT sector is insignificant in the domestic market. The technological sector accounts for 40% of India’s GDP. The IT sector is highly dependent on national as well as international market conditions. The strength of INR against USD greatly affects the stocks of IT sector companies.
For the same reasons, the professionally handled IT sectoral mutual funds like Tata India Consumer fund, have enjoyed pleasant conditions even in the bearish trends of the domestic equities. In 2018, when a majority of the mutual funds struggled to maintain positive returns, Tata Digital India Fund provided nearly 25% gains in the calendar year of 2018. Weakness in rupee was a prominent reason that aided the IT sector growth. In 2019, the market has been turbulent in the international as well as domestic market due to general elections, fluctuations of crude oil prices, US-China trade war, etc. Due to which, the IT sector is also facing inconstant conditions.
About the Performance in 2019
For Tata Digital India Fund, the start of the year was perfect and superior gains were provided by the scheme in the initial months. However, the market turned volatile in later trends and so was the NAV of Tata Digital India Fund. Nothing can be predicted as of now as the general elections and trade war between US and China will be deciding factors.
What Should You Do?
According to the experts at MySIPonline, Tata Digital India Fund is a prominent sectoral scheme which has been a top performer under every market condition. It is focused only over IT stocks and possesses high risk. Investments must be done for the long term while opportunities to maximise the gains can be grabbed by purchasing more units when the NAV falls. The fund is more suitable for experienced investors as it is highly dependent on market conditions. New investors must take suggestions from an expert before investing. India has a great scope in IT sector and long term investments in Tata Digital India Fund can be quite rewarding for the investors.
Tata Digital India Fund is a late entrant in the category but has beaten all the peers under right market conditions. It is operated by supreme management staff at Tata Mutual Fund and is one of the best sectoral mutual funds in India. To start your investment now, download the MySIPonline app and become a successful investor.
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