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:
- 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
Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
Equity and Equity-related securities | 65% | 100% | High |
Preference Shares | 0% | 10% | Moderate to High |
Debt and Money market instruments | 0% | 35% | Low to Moderate |
Units of REITs and InvITs | 0% | 10% | Moderate to High |
About the Scheme
Name of the fund | ITI Value Fund |
Fund launched by | ITI Mutual Fund |
Asset Management Company | ITI Asset Management Limited |
Type of scheme | An open-ended scheme that will follow a value investing strategy |
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 |
Benchmark | Nifty 500 Value 50 TRI |
Entry Load | Not 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 |
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Options |
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Fund Managers | Mr. Pradeep Gokhale and Mr. Rohan Korde |
SIP Details
Type | Minimum Installments | Minimum Amount |
Daily SIP | 30 | ₹ 500 & in multiples of ₹ 1 thereafter |
Weekly SIP | 12 | ₹ 500 & in multiples of ₹ 1 thereafter |
6 | ₹ 1,000 & in multiples of ₹ 1 thereafter | |
Monthly SIP | 12 | ₹ 500 & in multiples of ₹ 1 thereafter |
6 | ₹ 1,000 & in multiples of ₹ 1 thereafter |