NFO: Tata Nifty India Digital ETF

By Morningstar |  14-03-22 | 

Tata Mutual Fund has launched Tata Nifty India Digital Exchange Traded Fund - an open-ended Exchange Traded Fund (ETF) replicating Nifty India Digital Index.

The fund opens for subscription on  March 14, 2022, and closes on March 25, 2022.

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 predefined Digital India Index. Current characteristics of the Nifty India Digital Index based on its index construction methodology represent 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”.

Some of the constituents of the Nifty India Digital Index include Bharti Airtel, Birlasoft, Coforge, Happiest Minds Technologies, HCL Technologies, Firstsource Solutions, Tech Mahindra, Wipro, among others, as of March 9, 2022.

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