Should you invest in ITI Mutual Fund Dynamic Bond Fund?

ITI Mutual Fund is introducing a New Fund Offer (NFO), ITI Dynamic Bond Fund, which will be available on June 25 and will end on July 9, 2021. The minimum application amount is Rs 5,000, and subsequent amounts are in multiples of Rs 1. The bond fund is benchmarked against CRISIL Dynamic Debt Index.

The strategy of the fund

The fund’s goal is to maximise returns through the active management of a portfolio comprised of debt and money market securities. The fund will pursue a strategy designed to provide investors with the benefits of dynamic fund management through flexible asset allocation and active duration management.

“We are focussed on offering a unique investment experience to investors through our schemes and fund management. With ITI Dynamic Bond Fund, we target to address the needs of investors who are looking for an all-seasons product which aims to provide steady returns by investing in debt and money market instruments,” said George Heber Joseph, chief executive officer (CEO) and chief investment officer (CIO), ITI Mutual Fund.

Management view

According to the management, there is no assurance that the investment objective of the Scheme will be achieved.

ITI Mutual Fund aspires to provide the appropriate product to investors at the right moment and to establish a new paradigm in the asset management market by concentrating on a distinct investing philosophy – SQL (S – Margin of Safety, Q – Quality of the business and L – Liquidity).

Things to consider

· Under the Securities and Exchange Board of India (Sebi) stipulated Risk-o-Meter, this product is suitable for the investors who are seeking moderate risk. However, it is always advisable that investors should consult their financial planners whether the product is suitable for them or not. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) is up to 2% which would be calculated on daily net assets.

· The entry load is not applicable, and there is no exit load.

· The AMC shall compute and announce the Scheme’s initial Net Asset Value (NAV) within 5 business days after allocation. Following that, the NAV will be computed and declared at the end of each Business Day and published on the AMFI website www.amfiindia.com and the ITI Mutual fund website www.itiamc.com by 11.00 p.m. on the day of the NAV declaration.

· ITI Mutual Fund began operations in April 2019 and has offered 12 standard investment products for investors in the market. The AMC has the support of a significant financial services industry group.

· In such a short time, the organisation has ensured that its governance, people, procedures, and infrastructure are properly established inside the AMC in order to provide its investors with a seamless long-term investment experience.