Seize the Digital Opportunity with HDFC Nifty India Digital Index Fund!

Can you think of any aspect of our life where technology has not created a substantial impact? The way we shop, travel, make payments, invest, bank, receive healthcare etc. has changed substantially over the years thanks to technology. We have provided some examples below of how the secular rise of technology has changed our lives.

Furthermore, recent advancements in Artificial Intelligence (AI) and Machine Learning (ML) are set to further accelerate the secular trend of rising tech intensity in our lives.

Investors can tap into this digital revolution through the HDFC Nifty India Digital Index Fund. This fund offers exposure to India's digital economy, with 30 companies selected across sectors like software, e-commerce, fintech, telecom, and more. Sector weights are capped at 50%, and individual stock weights at 7.5%, leading to diversified and balanced exposure~. The index includes both new-age companies driven by domestic consumption and IT leaders benefiting from global tech spending.

~ For detailed methodology, please refer Scheme Information Document (SID) or visit www.niftyindices.com

Expanding internet access can drive growth across E-Commerce, Fintech segments etc.

Rising internet penetration is driving digital consumption through E-Commerce and Fintech. Internet users grew from 660-690 million in 2019 to 780-800 million (57% penetration) in 2023, boosting online shoppers to 230-250 million (17% penetration)*. This growth, combined with favourable demographics and rising incomes, is fuelling industries like food delivery, quick commerce, beauty, and online travel. Several companies from these segments were in the Nifty India Digital Index Fund as of Oct 31, 2024^ eg. Zomato, PB Fintech (Policy Bazaar), Info Edge (Naukri.com), FSN E-Commerce Ventures Ltd. (Nykaa) etc.

IT Services Companies: Blue-Chip Leaders Poised to Gain from Rising Global Tech Spending and AI Adoption

India’s IT services sector is of strategic importance to India, playing a vital role in exports and contributing to macroeconomic stability. Many of these companies are well established blue-chip firms with strong fundamentals. With nearly 90% of their revenue coming from the Americas and Europe, these companies could stand to benefit significantly from global growth in tech spending. Additionally, they leverage India’s vast, skilled talent pool, further strengthening their competitive edge. Some of India’s leading IT Services names like TCS, Infosys, HCL Technologies etc. were part of the Nifty India Digital Index^ as of Oct 31, 2024.

Conclusion:

Investors can gain exposure to both the bluechips of the Indian IT industry, as well as several E-Commerce, Fintech companies etc., by investing in the HDFC Nifty India Digital Index Fund. The Nifty India Digital TRI has delivered healthy returns*, returning 26.0% CAGR over the last 5 years compared to the 19.7% CAGR for the Nifty 500 TRI as of Oct 31, 2024.

However, investors should note that the Scheme being sectoral in nature carries higher risks versus diversified equity mutual funds on account of concentration and sector specific risks. Thus, investors could take controlled exposure to such a fund.

The NFO for the HDFC Nifty India Digital Index Fund is between November 22 – December 6, 2024.

^ Source: NSE Indices Ltd. *Past performance may or may not be sustained in future and is not a guarantee of any future returns.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.