Offers higher flexibility as it adjusts debt and equity allocation based on the prevailing market scenario, with active debt management and passive equity management aiming for consistent returns.
ITI Mutual Fund has launched ITI Conservative Hybrid Fund. The NFO opened on February 21, 2022, and closes on March 07, 2022. The Fund will invest in various Debt Instruments and also in leading Nifty50 Index stocks.
According to the company, the fund seeks to generate regular income through investments in debt and money market instruments, along with capital appreciation through limited exposure to equity and equity-related instruments. However, it noted that there can be no assurance that the investment objective of the scheme will be realized.
George Heber Joseph, Chief Executive Officer and Chief Investment Officer, ITI Mutual Fund said, “The ITI Conservative Hybrid fund has high potential to attract money from investors who are predominantly investing in traditional savings products. The fund will have a minimum 75 per cent of the exposure towards high-quality debt securities and the remaining balance will be invested in equity and equity-related instruments of companies belonging to NIFTY50 Index.”
He further said, “Equity exposure will range between 10 per cent -25 per cent of the AUM and will be dynamically managed to give investors a smooth investment experience.”
This is the 16th fund being launched by the ITI AMC in its 2+ years of journey. The current AUM of the fund house is Rs. 2,661 crores as of January 31, 2022. Out of the total AUM, Equity AUM accounted for Rs. 1,869 crores while Hybrid and Debt schemes accounted for Rs. 580 crores and Rs. 212 crores respectively. The geographical spread of the AUM is well diversified with the top 5 cities accounting for 38.25 per cent, the next 10 cities with a share of 23.70 per cent, the next 20 cities with a share of 18.18 per cent, next 75 cities with a share of 15.15 per cent and followed by others with a share of 4.72 per cent.
Key points of the fund:
• An open-ended hybrid scheme investing predominantly in debt instruments
• Suitable for investors looking for generating income over the medium to long-term along with capital appreciation
• Minimum investment required is Rs 5,000
• Higher flexibility as it adjusts debt and equity allocation based on the prevailing market scenario, with active debt management and passive equity management aiming for consistent returns
The fund will be jointly managed by Vikrant Mehta and Pradeep Gokhale.