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ITI Value Fund NFO

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Vidhi Tuteja
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Vidhi Tuteja
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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

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity and Equity-related securities65%100%High
Preference Shares0%10%Moderate to High
Debt and Money market instruments0%35%Low to Moderate
Units of REITs and InvITs0%10%Moderate to High

About the Scheme

Name of the fundITI Value Fund
Fund launched byITI Mutual Fund 
Asset Management CompanyITI Asset Management Limited 
Type of schemeAn open-ended scheme that will follow a value investing strategy
Investment ObjectiveThe 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
BenchmarkNifty 500 Value 50 TRI
Entry LoadNot Applicable
Exit Load

-If units redeemed or switched out within 12 months - 1% of applicable NAV

-If units are redeemed or switched out after 12 months - NIL

Taxation

Taxed as Equity

-If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15%

-If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year

Minimum Application Amount ₹ 5,000 & in multiple of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiple of ₹ 1 thereafter
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Income Distribution Cum Capital Withdrawal
Fund ManagersMr. Pradeep Gokhale and Mr. Rohan Korde

SIP Details

Type Minimum InstallmentsMinimum Amount
Daily SIP30₹ 500 & in multiples of ₹ 1 thereafter
Weekly SIP12₹ 500 & in multiples of ₹ 1 thereafter
6₹ 1,000 & in multiples of ₹ 1 thereafter
Monthly SIP12₹ 500 & in multiples of ₹ 1 thereafter
6₹ 1,000 & in multiples of ₹ 1 thereafter

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