ITI Mutual Fund started its operations in April 2019. The AMC is a new entrant in the mutual fund industry and is backed by a large conservative cash rich business group.
ITI Small Cap Fund NFO started on January 27, 2020 and has received excellent response from the investors and has collected more than Rs 200 crores. The NFO closed on February 10, 2020 in which about 1800 distributors participated.
“The right time to invest in Small Caps is when the pessimism is the highest and the absolute valuation is very cheap for the Small Cap segment of the market. Every 5-7 years equity markets gives an opportunity to invest in Small Caps at a very attractive valuation. In the Year 2003, 2008 and 2013 Small Caps were very attractively valued and we believe the year 2020 is again providing a fantastic opportunity to invest in Small Caps at very cheap valuations. The differential valuations between Large Caps & Small Caps is at a decade high and this offers a significant opportunity to investors to invest in Small Caps and make significant alpha over large cap stocks ”said Mr George Heber Joseph, CEO & CIO, ITI Mutual Fund.
Till now ITI Mutual Fund has launched 6 schemes - ITI Multi Cap Fund, ITI Long Term Equity Fund (ELSS- Tax Saving Fund), ITI Arbitrage Fund, ITI Liquid Fund, ITI Overnight Fund, ITI Balanced Advantage Fund and ITI Small Cap Fund is the seventh NFO that the fund house has launched and has got a fantastic response
Commenting on the impressive investor response to its ITI Small Cap Fund NFO, George Joseph, Chief Executive Officer and Chief Investment Officer said, “We are very happy with the positive response that we have received in the NFO. We are focusing on T30 towns and few B30 locations from where we have got good traction. The overall response from the PAN India distributors was very encouraging and that clearly reflects in the NFO collection.
The AMC started its operations in April 2019 and in such a short period of ten months; it has empanelled more than 8000 IFAs and has set up 17 branches. The fund house has set a target of opening 48 branch offices in the next few years to connect with IFAs across the country.
ITI Mutual Fund aims to offer the right product to the investors at the right time and brings a new paradigm in Asset Management space by focusing on a unique investment philosophy - SQL (S - Margin of Safety, Q - Quality of the business and L - Low Leverage). In the first six months of existence itself the fund house has created a very strong risk management framework and solid investment processes with a clear focus on bottom up research methodology to pick the right set of stocks in the portfolios.
ITI Small Cap Fund will have a well-diversified portfolio. Individual stock exposure will be capped at 3% (per cent) of the AUM at the time of investment. The Fund is benchmark & sector agnostic and at the time of purchase the fund will stick to Small Cap universe only as defined by AMFI. Atleast 80% of the portfolio will be core stocks and tactical bets will not be more than 20%. The objective of the fund house is to generate consistent & superior investing experience for all our investors.
Structural measures taken by the government might have impacted the economy in the near term, but are quite positive from a long term perspective. Formalisation of the economy is happening at a rapid pace and we see many opportunities to invest in this regard. In such a scenario we are bullish on the economy and investing in equities provides a fantastic wealth creation opportunity in the next decade. As the whole economy is going to revive and broad market earnings growth to pick up, we strongly believe investing in Small Caps at this juncture can be really rewarding and mostly the fabulous results could be seen in next 3-5 years.
