ITI Mutual Fund launched the conservative hybrid fund ITI; top things investors need to know

ITI Mutual Fund has announced the launch of the “ITI Conservative Hybrid Fund”. The New Fund Offering (NFO) opened on February 21, 2022 and will close on March 7, 2022.

The fund will invest in a range of high quality debt instruments as well as the main stocks of the Nifty50 index and will be jointly managed by Vikrant Mehta and Pradeep Gokhale.

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This is the 16th fund launched by ITI AMC in its more than two-year journey. The current AUM of the fund house is Rs 2,661 crores as of 31 January 2022. Of the total AUM, the Equity AUM accounted for Rs 1,869 crores while the hybrid and debt schemes accounted for Rs 580 crores and Rs 212 crore.

There are some key highlights of the fund that investors should be aware of. These are:

1) Hybrid diet – An open-ended hybrid plan investing primarily in debt securities

2) Revenue Generation – Suitable for investors looking to generate medium to long-term income and capital appreciation

3) Minimum investment – Minimum investment required is Rs 5,000 and in multiples of Re 1 thereafter

4) Flexibility – Greater flexibility as it adjusts debt and equity allocation based on the prevailing market scenario, with active debt management and passive equity management aiming for consistent returns

The fund seeks to generate regular income through investment in debt and money market instruments, as well as capital appreciation through limited exposure to equities and equity-related instruments. However, there is no guarantee that the investment objective of the plan will be achieved.

The geographic distribution of AUM is well diversified with the top 5 cities accounting for 38.25%, the next 10 cities with a share of 23.70%, the next 20 cities with a share of 18.18%, the top 75 cities following with a share of 15.15%. cent and followed by others with a share of 4.72 percent.

Dolores W. Simon