Mutual Fund News : ITI Mutual Fund Launches ITI Dynamic Bond Fund

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ITI Mutual Fund has launched ITI Dynamic Bond Fund.

It is an open-ended debt scheme investing across duration.

The investment objective of the scheme is to maximise returns through an active management of a portfolio comprising of debt and money market instruments.

However, there can be no assurance that the investment objective of the scheme will be achieved.

ITI Dynamic Bond Fund is mandated to invest upto 100% of its assets in Debt and Money Market Instruments across duration. It can also invest upto 10% of its assets in Units issued by REITs & InvITs.

As per the Scheme Information Document, ITI Dynamic Bond Fund will follow an active investment strategy structured in a manner that offers investors the benefit of a dynamic investment strategy through its duration management and asset allocation.

ITI Dynamic Bond Fund is a medium to long-term investment option that provides the flexibility to counter a dynamic environment by actively managing its portfolio in line with the evolving interest rate scenario. The scheme will follow an active duration management strategy.

The schemes investment strategies will focus on constructing fixed income portfolios in line with above objective. Portfolio manager will manage the fund based on the outlook on interest rates and liquidity etc. Such outlook will be developed by in-house assessment of various macro factors like economic growth, inflation, credit pick-up, liquidity and other such factors as considered relevant.

Credit portfolio management will be primarily guided by external credit ratings assigned by any of the recognized credit rating agency. Additionally, as may be deemed appropriate, inputs may be taken from financial statement analysis, management review, industry trends, capital structure and covenant analysis to identify securities for inclusion / exclusion from credit portfolios.

Efficient portfolio construction will be used to manage interest rate risk across different asset class and duration buckets, and optimise risk-adjusted returns.

ITI Dynamic Bond Fund’s performance will be benchmarked against CRISIL Dynamic Debt Index.

It will be managed by Mr Vikrant Mehta.

The NFO opens for subscription on June 25, 2021, and closes on July 09, 2021. The scheme will re-open for continuous Sale and Repurchase from July 23, 2021.

The fund’s NAV is priced at Rs 10 per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (with Payout of Income Distribution cum capital withdrawal option and Reinvestment of Income Distribution cum capital withdrawal option).