ITI Mutual Funds' latest offering received excellent response from MFDs and investors. The ITI Mid Cap Fund NFO was able to collect Rs 228 crore.
The NFO that closed on March 1, 2021 saw participation from 2,265 distributors across the country.
“We are very happy with the positive response that we have received in the NFO. The overall response from the pan-India distributors was very encouraging and that clearly reflects in the NFO collection. As a team we are committed to deliver the best to our partners & investors on a holistic basis,” said George Joseph, CEO of ITI MF.
The company has set clear guidelines to make sure that the fund is safe and well diversified. Here are some of the important points:
- Individual stock exposure to be capped at 3% of the AUM at the time of investment
- The fund will stick to mid-cap universe as defined by AMFI
- At least 80% of the portfolio will comprise of core stocks
- Tactical bets will not be more than 20%
The fund house believes that this is the right time to invest in mid caps. “Investing in mid caps at this juncture can be really rewarding and fabulous outcomes in terms of risk adjusted returns could be seen in the next 5 years,” the AMC said.
"Reforms (done by government) are working as a tailwind in the economy post the pandemic. 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 quite bullish on the economy and investing in equities provides a fantastic wealth creation opportunity in the next decade," it added.
The mid-cap fund is the tenth scheme launched by the fund house. The other schemes run by the MF include 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, ITI Small Cap Fund, ITI Banking & PSU Debt Fund and ITI Large Cap Fund.
Expansion Plans
The AMC plans to open 48 branch offices in the next few years to connect with MFDs across the country. The fund house, which started operations in April 2019, has already empaneled more than 12,721 MFDs and has set up 25 branches.
The AMC is backed by the Investment Trust of India and Fortune Credit Capital. It aims to offer superior risk adjusted returns over the long term.
