Tata AMC - TNIDETF

About Tata Nifty India Digital ETF

• Tata Nifty India Digital ETF is an exchange-traded fund offered by the Tata Mutual Fund house.
• The ETF was launched on March 31, 2022.
• It includes stocks broadly representing the digital theme across IT, consumer services, telecom and other sectors.
• Meeta Shetty and Kapil Menon are the fund managers for this ETF.
• Investment in the ETF can be made via a demat account with a registered broker.
• The Tata Nifty India Digital ETF units can be bought and sold just like equity stocks on the exchange.

Investment Objective & Benchmark

• The ETF aims to offer returns that before expense correspond to the total returns of the securities as represented by the underlying index.
• The ETF is benchmarked against the Nifty India Digital Index which provides exposure to the growing digital space in India. The index includes stocks of the 30 largest companies based on 6-month average free-float market capitalisation.
• Tata Nifty India Digital ETF offers investors exposure to companies in the digital domain, which has shown a strong growth trajectory in the past few years.
• The ETF diversifies funds to multiple sectors, limiting investors' sectoral risk.
• The major chunk of the funds are invested in companies from the technology sector which has been at the forefront of India's growth over the past three decades.
• The ETF aims to ride on the digital wave, investing in stocks from the biggest players in technology companies.
• The investments are made in broadly three categories of companies – digital change agents, digital enablers and companies in the automatic, robotic and IoT space.

Asset Allocation & Portfolio Composition

• The ETF has invested 99.80% of its fund in equity. The remaining 0.20% is invested in other instruments such as debt and cash.
• Stock of companies in the technology sector constitutes 45.09% of the ETF's asset allocation. This is followed by services with 36.6%, communication with 18.05% and other sector companies with 0.20% contributions.
• The ETF has invested funds in companies across various market capitalisations. Tata Nifty India Digital ETF has invested 68.10% of the funds in giant-cap, 15.81% in large-cap, 11.85% in mid-cap, 4.24% in small-cap and 0.01% in tiny-cap companies.
• The top company holdings in the scheme make up 67.84% of the asset allocation.

Here's a list of the top 10 company holdings in Tata Nifty India Digital ETF

• Bharti Airtel Ltd - 8.46%
• Info Edge (India) Ltd - 8.27%
• PB Fintech Ltd - 7.92%
• Zomato Ltd - 7.84%
• Tata Consultancy Services Ltd - 7.15%
• Infosys Ltd - 7.11%
• HCL Technologies Ltd - 6.47%
• Indian Railway Catering And Tourism Corporation Ltd - 6.28%
• Tech Mahindra Ltd - 4.91%
• FSN E-Commerce Ventures Ltd - 4.55%

The ETF has posted a return of 36.65% in the last year, as of July 17.

Since its inception, Tata Nifty India Digital ETF has delivered a CAGR of 9.14%.