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Tuesday, March 24, 2020

ITI Large Cap Fund NFO – A to Z Details

ITI Large Cap Fund NFO – A to Z Details 

New Fund Offer Details

An open-ended equity mutual fund scheme.

Scheme would open for subscription on 26th March, 2020.

Scheme would close for subscription on 9th April, 2020.
Since this is an open ended scheme, it would again open for subscription after 5 business days from the date of allotment of MF units after the NFO period.

This scheme is available in both regular and direct plans.

This plan offers both growth option and dividend option.
SIP investment

This scheme is available for lump sum and SIP investment.

Minimum investment is Rs. 500 and in multiples of Rs 1 there-off for lump sum investments.

Minimum investment is Rs. 500 per month for monthly SIP and for a tenure of 6 months.

The NAV of the NFO is Rs. 10 per unit now during initial subscription.

There is no entry load to invest in this mutual fund scheme.
There is no exit load in this scheme.

This scheme is classified as moderately high risk mutual fund scheme.

Scheme total expense ratio (TER) is estimated at a maximum of 2.25% of the total assets on any day.

Who can invest in this mutual fund scheme?

Any of the following can invest in this scheme.
Resident Individuals, Resident Indian Nationals, including partnership forms, companies, Banks, HUFs, Sole Proprietorship etc., NRI’s, Foreign Portfolio Investors

 Fund Manager of ITI Large Cap Fund NFO

All funds will be managed in a co-fund manager model. Co-managed by Mr. George Heber Joseph & Mr. Pradeep Gokhale. Further, Mr. Pradeep Gokhale is the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars issued from time to time.

Benchmark for this scheme

The benchmark for this scheme is Nifty 100 TRI.

Investment objective and strategy 

The investment objective of the Scheme is to seek to generate long term capital appreciation by predominantly investing in equity and equity related securities of large cap stocks.

Allocation pattern 

This fund investment pattern is as follows:

It invests 80% to 100% in equity and equity related Instruments of large cap companies. The risk profile in this segment is high.

It invests 0% to 20% in equity and equity related Instruments of other than large cap companies. The risk profile in this segment is high.

It would invest 0% to 20% in debt and money market instruments. The risk profile in this segment is low to medium.

It would invest 0% to 10% in units issued by REITs and InvITs. The risk profile in this segment is low to high.
Why should you invest in such Large Cap Funds?

Here are a few reasons to invest in such schemes.

Largecap mutual funds invests in large cap stocks which are stable. Since these are large in size, these are safer companies compared to midcap and smallcap companies.

These are safer during downturns as such companies are established with sound fundamentals. You are seeing a stock market correction now. These funds that invest in large cap stocks would tend to recover faster during the recovery phase in the stock market.

Large cap stocks pay dividend too. This could provide dividend yield to your large cap fund’s portfolio.
Some risk factors you should consider before investing in such funds

One should consider some of these risk factors / negative factors before investing.

This scheme invests in only large cap stocks up to 100% which provide stable returns. You can’t expect to double or triple your money in the short to medium term even during the bull phase.

It would invest up to 20% in debt instruments. These days debt instruments of corporates have become high risk. Yes Bank debt paper value has been made to zero value as an example.

Investors should not assume any guaranteed returns from such funds.

Since it is a new mutual fund scheme, there is no past performance, hence we would not know, how the fund would perform in the future.


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