ITI Mutual Fund Introduces Large and Mid-Cap Funds for Subscription
ITI Mutual Fund presents ITI Large and Mid Cap Fund, an open-ended fund investing in the top 250 companies contributing to the country’s growth.
On the bright side, the New Fund Offer for this scheme is open for subscription from August 21st up to September 4th. The main aim of setting up the fund is to help attain long-term capital growth by investing in companies that form part of India’s rapidly growing economy. The fund is going to provide diversification in the investment portfolio and accumulation of wealth.
The fund will be managed by Vishal Jajoo and Rohan Korde and will be benchmarked against the Nifty Large Midcap 250 Index (TRI). It is an index that broadly reflects the performance of large and mid-cap companies in India.
The ITI Large and Mid Cap Fund is an equity fund that shall leverage the India growth story, founded upon the structural, cultural and digital drivers. The scheme would, therefore, invest in companies that are major beneficiaries in the organized market because of changing demographics through urbanization and rising income levels. Yet another important trend is the rise in discretionary spending, propelled by the growth of nuclear and aspirational families, which is leading to higher consumption and must, therefore, bode well for the performance of these companies.
One of them was Vishal Jajoo, Fund Manager at ITI AMC. He stated, “India is one of the fastest growing economies in the world today.” He explained that companies with good growth visibility will always tend to fetch a premium due to the visibility of earnings. The fund will follow a bottom-up approach in picking companies that have a strong order book and visible revenues and earnings over the next 2-3 years. These can potentially lead to high return ratios for such companies, making them very attractive for investment by the fund.
Investors can invest in the ITI Large and Mid Cap Fund with a minimum investment amount of Rs.5,000. In their case, investing through SIP, the minimum investment amount is fixed at Rs.500. There would be an exit load of 0.5%, in case the units are redeemed or switched out within three months of the allotment date.
This new fund opens the most promising opportunity for investors who are expected to benefit from India’s economic growth.
