NFO Analysis: ITI Conservative Hybrid Fund
ITI Mutual Fund is launching the Conservative Hybrid Fund
ITI Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented and hybrid schemes i.e., in total, the fund offers 16 different schemes. The quarterly average assets under management of the ITI Mutual Fund are Rs 2,406.85 crore as of December 2021, which is launching its conservative hybrid scheme. This is an open-ended that seeks to generate regular income along with capital appreciation through limited exposure to equity and equity-related instruments.
Subscription Dates: The NFO has launched today i.e., on February 21, 2022, and will close on March 07, 2022.
Objective of the scheme: The scheme strives to generate regular income through investments in debt and money market instruments, accompanied by capital appreciation through limited exposure to equity and equity-related instruments.
Investment Strategy: The scheme intends to invest in high-quality debt and money market instruments portfolio which will deliver regular income to investors. The fund manager will allocate the assets of the scheme taking into consideration the prevailing interest rate outlook and the liquidity of the different instruments. The scheme will also invest in equity and equity-related instruments of the company that forms part of the Nifty 50 Index for capital appreciation. Besides, The Fund Manager will pick stocks from the Nifty index which are predominantly good companies with market leadership, low leverage and trading at attractive valuations.
Asset Allocation:
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Instruments
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Maximum
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Minimum
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Risk Profile
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|
Debt & Money Market Instruments
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90%
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75%
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Low to Medium
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|
Equity & Equity related instruments
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25%
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10%
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High
|
|
Units issued by REITs & InvITs
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10%
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0%
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Medium to High
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Benchmark: Nifty 50 Hybrid Composite Debt 15:85 Total Return Index (1st tier benchmark)
Fund Manager: Vikrant Mehta and Pradeep Gokhale
This fund will be suitable for investors with moderately high-risk appetites as the fund manager of this scheme will allocate the capital towards debt and money market instruments along with some proportion towards equity and equity-related instruments. Investors who are willing to diversify their portfolios and wants the higher exposure of debt and lower exposure of equity in order to receive safe returns can consider investing in this fund. NFO is not the best option to invest in as there is no historical data available to track the performance. As this is not a new theme that the fund is offering, it’s better to invest in schemes that already have historical data. Otherwise, investors who are willing to invest should have a high-risk appetite.