ITI Mutual Fund Launches ITI Value Fund
   May 25, 2021

ITI Mutual Fund (MF) has launched an open ended equity scheme - ITI Value Fund.

The scheme endeavors to follow a value investment strategy.

Accordingly, the investment objective of the scheme is to seek to generate long term capital appreciation by investing substantially in a portfolio of equity and equity related instruments by following value investing strategy. However, there can be no assurance that the investment objective of the scheme would be achieved.

Under normal circumstances, 65% to 100% of the funds portfolio will be invested in equity & equity related instruments including derivatives, with 0% to 10% in Preference Shares.

The scheme may also invest upto 35% of its assets in Debt & Money Market Instruments, and may seek to invest upto 10% of its net assets in Units issued by REITs and InvITs.

The investment strategy of ITI Value Fund as mentioned in the Scheme Information Document (SID) is as follows:

The Scheme aims to provide long term capital growth by investing in a diversified portfolio of companies that are selected using attributes of value investing. The Scheme would seek to identify undervalued securities having the potential to deliver superior risk adjusted returns over the long term and will follow a value-based approach towards investing.

Undervalued stocks would include stocks which the Fund Managers believe are trading at less than their assessed intrinsic values. The identification of undervalued stocks would involve fundamental analysis. It will be based on the evaluation of various factors including but not limited to stock valuation, financial strength, cash flows, company’s competitive advantage, business prospects and earnings potential.

This may also constitute stocks, which have depreciated for a short period due to some exceptional circumstance or due to market correction phase or due to lack of interest in investing in a sector, which has significantly underperformed the market. Such stocks are considered to have intrinsic value because of their business models and show potential for smart growth in the future.

The Scheme may also seek participation in other equity and equity related securities to achieve optimal portfolio construction.

The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The Scheme may also invest a certain portion of its corpus in debt and money market securities. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.

ITI Value Fund’s performance will be benchmarked against Nifty 500 Value 50 TRI (Total Return Index).

ITI Value Fund will be managed by Mr Pradeep Gokhale and Mr Rohan Korde (Debt Portfolio).

The NFO opens for subscription on May 25, 2021 and closes on June 08, 2021. The scheme will reopen for continuous sale and repurchase on or before June 21, 2021.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).

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