ITI Value Fund NFO

ITI Mutual Fund has announced the launch of the ITI value Fund. The fund is an open-ended scheme that will follow a value investing strategy.

The New Fund Offer (NFO) starts on 25th May 2021 and will end on 08th June 2021.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth by investing in equity and equity-related securities by following a value investing strategy.

Features

• The Fund will be investing at least 65% of its assets in equity and equity-related securities.
• The fund also offers some exposure to preference shares, debt & money market instruments, and units of REITs and InvITs.
• Stocks will have internal stock limits -

Large-Cap - 7%

Mid-Cap - 5%

Small-Cap - 3%

• Fund will use the equity investment philosophy of SQL where S stands for Margin of Safety, Q stands for Quality of Business, and L stands for Low leverage.

Factors considered for Value Investing Strategy

• Consistent earning power
• Good Return on Equity (ROEs) with no or little debt
• Strong management
• Simple businesses
• Stock trading at a good discount to its intrinsic value or book value

Equity Investment Process

Following investment process is followed for selecting the underlying stocks:

1. Bottom-Up stock selection -

• Company growth drivers
• Business quality assessment
• Cost drivers

2. Top-Down sector allocation - 

• Identify emerging themes
• Expected tailwinds
• Macro economic orientation

3. Eligible portfolio universe -

• Assessment of liquidity
• SQL Philosophy
• Valuations

Why invest in ITI Value Fund?

• The fund will use the value investing strategy for investing.
• It will use a bottom-up approach for stock selection and a top-down approach for sector allocation.
• Fund will try to generate returns from re-ratings and earnings growth of the company.
• Fund will offer the opportunity to participate in the turnaround success of the stocks.
• It will use the disciplined approach during volatility.
• Fund will have a limited relative downside while the upside potential is high.

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long-term capital growth.
• Interested in value investing strategy.
• Investors looking for a diversified portfolio with relatively low downside risk.
• Recommended for investors with an investment horizon of 3-5 years & above.

Asset Allocation Pattern

About the Scheme

SIP Details