Track ITI Multicap Fund for a while, then invest: Experts

ITI Multicap Fund is the first equity fund from ITI Mutual Fund, which recently launched its operations.

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Financial planners said the investors could give the new fund offer (NFO) of ITI Multicap Fund a miss. ITI Multicap Fund is the first equity fund from ITI Mutual Fund, which recently launched its operations.

Investors could study the new fund's portfolio management style for about 6-12 months to decide whether to assign money to the scheme. While the scheme's fund managers George Heber Joseph and Pradeep Gokhale are experienced industry hands, the timing of the fund's launch, when the benchmark indices have recently touched all-time highs, has made it difficult for investment advisors to recommend this product.

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  • N.ATime taken to double money
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“Investors should be in no hurry to invest in the NFO. Let the fund manager build a track record, see the quality of portfolio and then take a call,” said Shankar S, founder, Credo Capital.


The new fund offer is currently open and closes on May 9. Investors can put in a minimum lumpsum amount of Rs 1,000 and also use the SIP mode of investing with a minimum of Rs 500.

ITI MF follows the GARP style of investing. That is, growth at reasonable price and not growth at any price. The fund house hopes to differentiate itself by its focus on SQL, an abbreviation that stands for margin of safety, quality of the business and low leverage.

“SQL investment philosophy is unique in India but it is a globally proven investment philosophy which is designed towards creating long-term wealth for the investors,” says George Heber Joseph,who is the chief executive officer of ITI Mutual Fund.
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He believes it is important to avoid losers and the winners will take care of themselves. Given that valuations are high currently, it is believed the fund will have a tilt towards large-cap stocks.
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