Publish Date:
ITI Mutual Fund has launched ITI Ultra Short Duration Fund.
It is an open-ended ultra-short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 months to 6 months.
Accordingly, investment objective of the Scheme is to generate regular income and capital appreciation through investment in a portfolio of short-term debt & money market instruments such that the Macaulay duration of the portfolio is between 3-6 months. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
ITI Ultra Short Duration Fund is mandated to invest 0% to 100% of its assets in Debt & Money market instruments including government securities. The Macaulay Duration of the portfolio shall be between 3 months and 6 months.
As per the Scheme Information Document (SID), to achieve the investment objective of the Scheme, investments will be made in an appropriate mix of high quality portfolio of short term debt and money market instruments with relatively lower interest rate risk.
The Scheme would endeavour to generate returns commensurate with low levels of interest rate risk by maintaining the Macaulay duration of the portfolio between 3 months and 6 months.
The AMC will be guided by fundamental research and analysis, ratings assigned by domestic credit rating agencies, macroeconomic factors.
In addition, the investment team of the AMC will carry out an internal in-depth credit evaluation of securities proposed to be invested in. The credit evaluation will essentially be a bottom up approach and include financial statement analysis, a study of the operating environment of the issuer, the past track record as well as the future prospects of the issuer and the short term / long term financial health of the issuer, prospects of the industry.
ITI Ultra Short Duration Fund’s performance will be benchmarked against its performance to NIFTY Ultra Short Duration Debt Index.
It will be managed by Mr Vikrant Mehta.
The NFO opens for subscription on April 19, 2021, and closes on April 20, 2021. The scheme will reopen for continuous Sale and Repurchase from April 30, 2021.
The fund’s NAV is priced at Rs 1000/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Rs 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).