ITI Mutual Fund

While investing in mutual funds, investors often get confused about which AMC to choose for investment, as there are more than 50 AMCs in India. And each AMC has a different investment strategy. One such AMC is ITI Mutual Fund, which is not an old AMC but has shown exceptional performance over time and uses a value investment strategy.

About ITI AMC

ITI Asset Management Company is a part of the ITI group. The AMC was initially part of Essel Group, which was engaged in the mutual fund business and was earlier known as Essel Mutual Fund. The AMC faced many financial challenges, and it underwent a transition. Later in 2019, the company was acquired by new investors, and it was rebranded as ITI Mutual Fund. This led to a change in the company’s approach and a focus on creating a long-term value-investment philosophy.

Various fund houses focus on short-term momentum, whereas ITI AMC has carved a niche by focusing on a value investment strategy. The AMC focuses on disciplined portfolio construction and long-term wealth creation.

George Heber Joseph – Value Philosophy

The key investment strategy of ITI AMC comes from its Chief Investment Officer, George Heber Joseph. He is popularly known for his belief in the value strategy of investing. This value strategy is popularised by global investors such as Warren Buffett and Benjamin Graham. 

This value philosophy generally revolves around the ideas of purchasing undervalued stocks which have strong fundamentals. If the market price of a stock is below its intrinsic value, it can be considered an investment opportunity.

Key Details of ITI Mutual Fund AMC

AMC Overview & Structure

AUM, Leadership & Management

Value vs Growth Investing

The key difference between value and growth investing strategies is as follows:

Why Invest in the ITI Mutual Fund

The key reasons why one should invest in the ITI Mutual Fund are as follows:

• Unique Investment Strategy: ITI Mutual Fund follows a disciplined research-backed strategy focusing on a value strategy. They focus on macroeconomic trends, market cycles, etc.
• Experienced Fund Management Team: The ITI mutual fund asset management company’s key personnel have decades of market experience and are backed by professionals who have strong knowledge of this sector.
• Variety of Investment Options: The ITI AMC offers various investment options across all three categories, such as equity, debt, and hybrid. It allows investors to diversify their portfolio.
• Regulatory Framework: As ITI AMC is registered with the Securities and Exchange Board of India under the mutual fund regulation, it ensures a regulated investment option.
• Transparency: ITI Mutual Fund focuses on transparency, simplicity, compliance, etc., which helps an investor to carry out efficiently.

Risk of Investing in ITI Mutual Fund

The key risks of investing in the ITI mutual fund are as follows:

• Market Risk: Most of the ITI mutual funds have equity-oriented scheme performance, which is directly linked with market performance. Hence, returns are not guaranteed in it.
• Fund Manager Risk: The performance of ITI AMC depends on the fund manager. Changes in fund managers and their key decisions can significantly impact the fund’s performance.
• Smaller AUM: The AMC has a smaller AUM and has a limited track record, as it was established in 2018. Hence, one cannot judge its long-term performance because of a lack of data.
• No Guaranteed Returns: While investing in mutual funds, there are no assured returns. Not even the dividend payouts are regular. And investors are not supposed to rely on past performance.
• External Risk: Various other factors can impact the performance of ITI Mutual Fund, such as inflation, government policies, global events, etc.

How to Invest in ITI Mutual Fund

One can easily invest in the ITI mutual fund by following the steps mentioned below:

• Open an Account: If you have an account with Pocketful, then you can easily log in to it; otherwise, you have to open an account.
• Login: Once you open your account with Pocketful then you need to login into Pocketful mobile application and navigate to the dashboard.
• Go to the Mutual Fund Section: Once you log in, you will find a section named “Mutual Fund”, where you can find all the available funds for investment.
• Select ITI Mutual Fund: Now you can select a fund from ITI AMC based on your investment horizon and risk profile.
• Mode of Investment: After selection of a fund, you need to select the investment mode, which can be either a lump sum or SIP.
• Define Amount: Now, you need to enter your investment amount. It can be a monthly amount for SIP or a one-time lump sum investment.
• Complete Payment: There are various options to pay for your investment, it can be UPI, or Net banking, etc.
• Confirmation of Investment: Once the payment is made successfully, your investment is confirmed, and the units will be allotted to you shortly.

Conclusion

On a concluding note, investing in the ITI Mutual Fund can be a good investment option as the AMC focuses on a value investing approach. The AMC is relatively new and has the potential to perform well in the long run. However, like any other mutual fund company, the funds of ITI MFs are also exposed to volatility, interest rate risk, and credit risk, etc. These funds are suitable for investors who can bear market volatility. One should consult their investment advisor before making any investment decision.

Frequently Asked Questions (FAQs)