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Mutual funds, investment asset selection by performance concept. | Photo Credit: Nuthawut Somsuk
ITI Mutual Fund has announced the launch of the ‘ITI Conservative Hybrid Fund.’ It is an open-ended hybrid scheme investing predominantly in debt instruments. The new fund offer (NFO) opened on February 21, 2022 and will close on March 7, 2022.
The fund will invest in an array of high-quality debt instruments and also in leading Nifty50 Index stocks. It will bemanaged by Vikrant Mehta and Pradeep Gokhale.
“The fund seeks to generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure to equity and equity-related instruments. However, there can be no assurance that the investment objective of the scheme will be realised,” ITI Mutual Fund said in an official release.
The minimum investment required is ₹5,000 and in multiples of ₹1/- thereafter.
George Heber Joseph, Chief Executive Officer and Chief Investment Officer, ITI Mutual Fund, said, “We are quite thrilled to offer ITI Conservative Hybrid Fund to investors and we believe it has a very 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 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, Joseph said.
The equity exposure of the fund will range between 10 per cent and 25 per cent of the assets under management (AUM) and will be dynamically managed.
“This can be a wonderful value-added product for distributors to help them onboard a new investor into the mutual fund universe and provide them a ready, steady and growth experience,” said Josephr.
This is the 16th fund being launched by the ITI AMC during its over two years of journey.
The current AUM of the fund house stand at ₹2,661 crore as on January 31, 2022. Out of the total AUM, Equity AUM accounted for ₹1,869 crore while hybrid and debt schemes accounted for ₹580 crore and ₹212 crore, respectively.
The AUM is diversified geographically with the top five cities accounting for 38.25 per cent, next 10 cities with a share of 23.70 per cent, next 20 cities with a share of 18.18 per cent, next 75 cities with a share of 15.15 per cent, followed by others with a share of 4.72 per cent.
Published on February 22, 2022
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