ITI Dynamic Bond Fund NFO – Features, Investment Strategy, Returns and About Scheme

Gaurav Seth
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Gaurav Seth

ITI Dynamic Bond Fund NFO

ITI Mutual Fund has announced the launch of the ITI Dynamic Bond Fund. The fund is an open-ended dynamic debt scheme investing across duration.

The New Fund Offer (NFO) starts on 25th June 2021 and will end on 09th July 2021.

Investment Objective 

The scheme’s investment objective is to provide regular income and maximize returns through investing in debt and money market instruments.


  • The fund will invest in a high-quality portfolio of Government Securities and AAA-rated corporate bonds.
  • The fund will move across the duration spectrum to benefit from the change in interest rates.
  • It can maintain a diversified portfolio of different debt instruments like Certificate of Deposits, Commercial Papers, Government Bonds, Corporate Bonds, etc.
  • The fund has the ability to deliver reasonable returns under different market scenarios.

Investment Strategy

1. Liquidity

Fund will invest in liquid papers like corporate bonds and government securities. 

2. Flexibility

Significant allocation will be given to G-Secs which provide flexibility to actively manage across durations and benefit from changing interest rate cycles.

3. Credit Quality

Fund will majorly invest in AAA and A1+ rated securities. It will prefer good credit quality papers on the basis of qualitative and quantitative papers.

Why invest in ITI Dynamic Bond Fund?

  • Fund will benefit from yield curve inefficiencies.
  • It will capture the change in interest rate cycles.
  • The fund will predominantly invest in government securities and AAA-rated papers.
  • Fund's portfolio will realign itself on the basis of market scenarios.
  • The flexibility in the fund provides the ability to outperform across market cycles.

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in regular income over medium to long term
  • Interested in investments in high credit quality portfolio
  • Interested in investments in debt and money market instruments with flexible maturity
  • Recommended for investors with an investment horizon of 3-5 years & above

About the Scheme

Name of the fundITI Dynamic Bond Fund
Fund launched byITI Mutual Fund 
Asset Management CompanyITI Asset Management Limited 
Type of schemeAn open-ended dynamic debt scheme investing across duration
Investment ObjectiveThe investment objective of the scheme is to provide regular income and maximize returns through investing in debt and money market instruments
BenchmarkCRISIL Dynamic Debt Index
Entry LoadNot Applicable
Exit LoadNIL

Taxed as Non-Equity

-If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab

-If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits

Minimum Application Amount ₹ 5,000 & in multiple of ₹ 1 thereafter
Plans Available
  • Regular
  • Direct
  • Growth
Fund ManagersMr. Vikrant Mehta 

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