Publish Date:
ITI Mutual Fund has introduced an open-ended equity scheme - ITI Banking and Financial Services Fund.
It is an open ended equity scheme mandated to invest in Banking and Financial Services Sector.
The investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. However, there can be no assurance that the investment objective of the scheme would be achieved.
The scheme is mandated to invest 80% to 100% of its total assets in equity and equity related securities of companies engaged in Banking and Financial Services, upto 20% of its assets in equity and equity related securities of other companies. It can also hold upto 10% in Listed Preference Shares, upto 10% in Units issued by REITs & InvITs, and upto 20% of its assets in debt and money market instruments.
As per the Scheme Information Document, ITI Banking and Financial Services Fund aims to maximize long-term capital appreciation by investing primarily in equity and equity related securities of companies engaged in Banking and Financial services.
The scheme would invest in Banks as well as Non-banking Financial Services companies, Insurance companies, Rating agencies, Broking companies, Microfinance companies, Housing Finance, Wealth Management, etc. The above are only indicative and the fund will look to invest in new and emerging areas of Financial Services. As a sectoral fund, the portfolio will concentrate in the companies engaged in Banking and Financial Services.
The scheme may also invest in IPOs of companies which could be classified under Financial Services. The Scheme may also invest a certain portion of its corpus in debt and money market securities. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.
ITI Banking and Financial Services Fund’s performance will be benchmarked against NIFTY Financial Services TRI (Total Return Index).
The fund will be managed by Mr Pradeep Gokhale and Mr Pratibh Agarwal. Further, Ms. Hetal Gada is the dedicated Fund Manager for making overseas investments.
The NFO opens for subscription on November 15, 2021 and closes on November 29, 2021. The scheme will reopen for continuous sale and repurchase on or before December 13, 2021.
The minimum subscription amount is Rs 5,000 and in multiples of of Rs. 1/- thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Income of Distribution cum Capital Withdrawal (Payout and Re-investment Facility).