TATA Digital India Fund Direct Plan - Payout of Income Distribution cum capital withdrawal option

TATA Digital India Fund Direct Plan - Payout of Income Distribution cum capital withdrawal option ranks among the stronger performers in the Sectoral category, backed by a 5-star rating. It has delivered steady, if unspectacular, returns over a full market cycle. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 85/100.

Cost: At 0.14%, the expense ratio is meaningfully cheaper — about 87% below the Sectoral category average of 1.06% (based on 311 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -1.29 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 18.87% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.