Tata Digital India Fund
Direct · GrowthAI Summary
Tata Digital India Fund's SIP XIRR of 17.25% over 3Y and 22.68% over 5Y outpaces the category averages of 16.17% and 17.43% respectively, though the 1Y XIRR of 6.02% trails the category's 10.56%. Over longer horizons the fund has delivered strong alpha versus the NIFTY 50, with 8.77% alpha over 10Y (fund CAGR 18.16% vs benchmark 10.33%) and 8.37% over 7Y. Recent performance has been weak, with calendar year returns of -14.17% in 2026 and -8.81% in 2025 following strong 2023-2024 gains of 33.29% and 31.87%.
The fund has experienced 5 drawdown events exceeding 10%, with a maximum drawdown duration of 473 days and no recorded recovery from the max drawdown, highlighting meaningful downside risk typical of a sectoral fund. Calmar ratios range from 0.51 (10Y) to 0.73 (5Y), indicating modest risk-adjusted returns. Beta versus the NIFTY 50 has declined from 0.94 (5Y) to 0.76 (10Y), with downside capture improving from 97.99% over 5Y to 74.07% over 10Y, suggesting better downside protection in the longer historical period.
The portfolio is heavily concentrated in IT - Software at 53.5% of assets, with the top three holdings — Infosys (16.3%), TCS (9.75%), and Tech Mahindra (8.32%) — accounting for over 34% of NAV. Retailing (10.5%, led by Eternal at 7.62%), Telecom (6.0%), and Fintech (4.0%) provide modest diversification, while 44 total holdings offer some breadth beyond the top names. This concentration makes performance highly dependent on the Indian IT sector's fortunes.
The fund beats the category average SIP XIRR across the 3Y (17.25% vs 16.17%), 5Y (22.68% vs 17.43%), 7Y (21.27% vs 16.6%), and 10Y (16.74% vs 16.43%) windows, establishing a strong long-term track record against peers. Its 1Y XIRR of 6.02% lags the category's 10.56%, indicating recent underperformance within its peer group. Given the sharp calendar-year swings (76.34% in 2021, -22.7% in 2022, -14.17% in 2026), the fund demands patience through pronounced cycles.
This fund is suitable only for investors with high risk tolerance who understand the volatility inherent in a sectoral/thematic portfolio, given events like the -22.7% return in 2022 and the ongoing 473-day drawdown period. A holding period of at least 5-7 years is advisable, as the fund's edge over both its benchmark and category emerges clearly over longer windows. It should be used as a satellite allocation (typically 5-10% of a portfolio) rather than a core holding, complementing diversified funds.
- Long-term SIP XIRR consistently above category averages across 3Y, 5Y, 7Y, and 10Y horizons, with the 5Y XIRR of 22.68% exceeding the category average by over 5 percentage points
- Strong alpha versus the NIFTY 50 over longer periods, including 8.77% over 10Y and 8.37% over 7Y, with downside capture of only 74.07% at 10Y
- Low expense ratio of 0.56% for a sectoral fund, helping preserve net returns for direct-plan investors
- Heavy sector concentration with 53.5% in IT - Software and over 34% of NAV in just three IT holdings, making returns highly dependent on a single sector's cycle
- Recent underperformance with -8.81% in 2025 and -14.17% in 2026, a 1Y SIP XIRR of 6.02% that trails the category average of 10.56%, and no recovery yet from the maximum drawdown after 473 days
Generated on 01-11-2026, 3:06 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.61 L | 22.8% | -46.8% | 147.1% |
| 3 Years | ₹36.00 L | ₹47.64 L | 22.0% | -9.0% | 66.6% |
| 5 Years | ₹60.00 L | ₹1.09 Cr | 23.7% | -0.2% | 46.3% |
| 7 Years | ₹84.00 L | ₹1.87 Cr | 21.3% | 8.3% | 29.1% |
| 10 Years | ₹1.20 Cr | ₹2.73 Cr | 16.9% | 13.8% | 21.3% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 22.8% | 14.3% | 10.5% | +8.5% |
| 3 Years | 22.0% | 11.0% | 16.2% | +11.0% |
| 5 Years | 23.7% | 10.4% | 17.4% | +13.4% |
| 7 Years | 21.3% | 10.6% | 16.6% | +10.8% |
| 10 Years | 16.9% | 11.4% | 16.4% | +5.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 21.9% | 13.4% | -25.0% | 139.5% | 0.46 | 1.55 | 68% | — | — |
| 3 Years | 22.1% | 20.2% | 2.9% | 46.6% | 1.62 | 48.72 | 100% | — | — |
| 5 Years | 24.2% | 25.3% | 1.2% | 37.6% | 2.23 | 28.43 | 100% | — | — |
| 10 Years | 17.1% | 17.1% | 15.4% | 19.3% | 10.22 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -3.65 | 0.83 | 84.0% | 86.2% | -10.1% | -9.0% |
| 3 Years | -0.03 | 0.91 | 96.8% | 95.1% | 6.9% | 7.0% |
| 5 Years | -2.13 | 0.94 | 96.7% | 98.0% | 3.5% | 5.5% |
| 7 Years | +8.02 | 0.81 | 91.9% | 82.4% | 17.5% | 10.1% |
| 10 Years | +8.66 | 0.75 | 85.3% | 74.1% | 18.3% | 10.7% |
| 12 Years | +5.54 | 0.74 | 82.8% | 73.7% | 14.3% | 9.5% |
| 15 Years | +3.99 | 0.74 | 82.8% | 73.7% | 11.3% | 7.5% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | INFOSYS LTD | 16.30% |
| 2 | TATA CONSULTANCY SERVICES LTD | 9.75% |
| 3 | TECH MAHINDRA LTD | 8.32% |
| 4 | ETERNAL LTD | 7.62% |
| 5 | BHARTI AIRTEL LTD | 5.06% |
| 6 | PERSISTENT SYSTEMS LTD | 3.89% |
| 7 | HCL TECHNOLOGIES LTD | 3.56% |
| 8 | PB FINTECH LTD | 2.68% |
| 9 | FIRSTSOURCE SOLUTIONS LTD | 2.08% |
| 10 | CYIENT LTD | 1.96% |