ITI Mid Cap Fund NFO
ITI Mutual Fund has announced the launch of ITI Mid Cap Fund. The scheme would be investing its assets in equity and equity-related securities of mid-cap companies.
The New Fund Offer (NFO) starts from 15th February 2021 and will end on 01st March 2021.
The investment objective of the scheme is to provide long-term capital growth by investing in equity and equity-related securities of mid-cap companies.
What are Mid cap stocks?
- Mid-cap stocks are the stocks of companies that rank between 101th to 250th in terms of market capitalization.
- These stocks are largely entrepreneur-driven.
- Mid-cap stocks are generally the leaders in smaller sectors.
- These stocks are niche players in established sectors.
- The market capitalization of mid-cap stocks ranges from ₹8,389 crores to ₹28,141 crores.
- The Fund will be investing its assets in the equity securities of mid-cap companies as defined by AMFI.
- The fund will not invest more than 3% in a single stock at the time of investment.
- Fund will invest in companies that have a good and sound business.
- The fund will have a portfolio of at least 80% in core stocks and not more than 20% in tactical bets.
- There would not be more than 60 stocks in the portfolio.
- The fund would be invested at least 90% & no major cash calls will be taken.
Why invest in ITI Midcap fund?
- ITI Mid-cap fund will invest in mid-cap stocks which have the potential to provide superior returns in a long-term period.
- With improving economic growth, the mid-cap stocks are likely to experience strong improvement in revenues & profits.
- The differential valuations in midcap stocks will provide a great opportunity for stock picking.
- Most of the stocks with attractive valuations in the midcap universe are trading below their historical average. This provides a good opportunity to invest in the midcap space.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in investments in equity securities of mid-cap companies.
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern-
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Equity & equity-related securities of Mid-cap companies||65%||100%||High|
|Equity & equity-related securities of other than Mid-cap companies||0%||35%||High|
|Debt & money market instruments||0%||35%||Low to Moderate|
|Units of InvITs & REITs||0%||10%||Moderate to High|
About the scheme-
|Name of the fund||ITI Mid Cap Fund|
|Fund launched by||ITI Mutual Fund|
|Asset Management Company||ITI Asset Management Limited|
|Type of scheme||An open-ended equity scheme primarily investing in mid-cap stocks.|
|Investment Objective||The investment objective of the scheme is to generate long-term capital growth by investing its assets in equity and equity-related securities of mid-cap companies.|
|Benchmark||Nifty Midcap 100 TRI|
|Entry Load||Not Applicable|
1% of applicable NAV - If units are redeemed or switched out within 12 months.
Nil - If units are redeemed or switched out after 12 months.
|Minimum Application Amount||₹ 5,000 & in multiple of ₹ 1 thereafter|
|Minimum Additional Amount||₹ 1,000 & in multiple of ₹ 1 thereafter|
|Fund Managers||Mr. George Heber Joseph & Mr. Pradeep Gokhale|