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JUNE 2020FUND FACTSHEET

Our Equity Investment Philosophy

SMARGIN

OF SAFETY

QQUALITY OF

THE BUSINESS

LLOW

LEVERAGE

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

I am sure that all of you are much more bullish than you were in March’20, so market movements are definitely affecting your thinking process. We have turned very cautious in the near term and from a long-term perspective we are quite constructive on the markets.

Indian economy's road to recovery still has a long way to go, as the lockdown got extended, the stress on businesses seems to be massive without any formidable support from the Govt or RBI, seen yet. The Nifty is up nearly 39 per cent from its March 2020 lows, even though the underlying index earnings per share continue to drift downwards due to the Covid-19 impact — the nationwide lockdown impacted companies in the last seven days of the January-March 2020 quarter which is visible in the results across board.

Only one week of lockdown is reflecting in March’20 ended quarter numbers, and India Inc saw a big impact on the bottom line. The impact will be more pronounced in the first half of FY21. Many states, including Maharashtra, have extended lockdown till July’20 end, and hence we are far from going back to the pre-COVID business scenario in the near future.

Every rise in the market makes Indian market valuation expensive, if you look at the P/E Ratio of the market ‘P’ is continuously rising whereas ‘E’ is certain to fall relative to the earlier expectations. The market can’t ignore this for too long.

The Covid-19 situation did not see any major change or progress till now. The number of confirmed and active cases continues to rise steadily with the only consolation being the increase in recovery rate to almost 60%. However, India is still not able to achieve the second milestone of peaking of active cases. The authorities have no option but to follow a balanced approach between lives and livelihoods. There are talks around launch of vaccines in India and abroad which is also driving the positive momentum. Looking at the US FDA guidelines issued last week for COVID-19 vaccines, suggests that the rules are strict and difficult to comply easily, which means it would take longer than expected timelines for a vaccine launch.

George Heber JosephCEO & CIO

JUNE 2020 1FUND FACTSHEET

“Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.”

- Charlie Munger

“The continued rally on the bourses despite dismal economic data after the Covid-19 pandemic is widening the gap between index valuation and underlying fundamentals. Common sense has to prevail at this juncture, as liquidity driven rally has brought a belief to every market participant that all problems are over. We were expecting this rally to happen because of the massive quantum of liquidity pumped in by USA but we are turning cautious from these levels.

We see more downside to happen because of 3 major reasons

1) Valuations have moved up quite a bit, markets are not cheap any more

2) Possibility of volatility rising in the next 4 months as US Elections are nearing

3) Earnings to go collapse much beyond our initial estimates as the lockdown got extended, COVID cases rising, Indian Government package not being effective and RBI measures are significantly short of expectations.

We were very bullish and aggressive in our funds till second week of June'20. We have clearly mentioned in our factsheet commentary last month that we will be turning cautious in our funds. Going more overweight on defensive stocks and reducing the equity level & financials exposure further has been done across funds. ”






How to think about your portfolios?

If your portfolio earns 50% in one year and then loses 50% the next year, you are back to the same level, right?

Wrong!

Your two-year return is still a negative 25%.

Here’s the calculation. Rs 100 becomes Rs 150 in year one, and then halves to Rs 75 in year two. So, net-net, you are down from Rs 100 to Rs 75 over two years, which is a -25% decline.

This seems elementary, but a lot of us miss this simple math. Anyways, the point I am trying to make today is that to achieve a high return over a long period of time, we must focus on minimizing our mistakes or downsides.

As you analyze markets, industries, business models and financial statements, place considerable emphasis on what can go wrong and the potential impacts those negative turns of event could have. Frequently remind yourself that it is important to look down first before looking up, and that you must be focused first on return of capital rather than return on capital.

This obsession with the downside reflects a mindset captured nicely by Gotham Asset Management’s Joel Greenblatt, who says, “If you don’t lose money, most of the remaining alternatives are good ones!”

So, you must ask yourself ‘what is the downside risk on this investment?’ and leave a comfortable margin of safety.

You may not score big on every investment, but avoiding large losses will do wonders for your overall long-term return. So don’t be too fancied by near term returns and judge the portfolio success or failure.

Capacity to suffer is closely connected with the idea of delayed gratification. Delayed gratification happens when someone resists the temptation of an immediate reward in preference for a later reward. Delayed gratification is associated with resisting a smaller but more immediate gain in order to receive a larger or more enduring reward later.

In the famous Marshmallow Experiment, social scientists reached the conclusion that the kids who had the temperament to patiently wait on an easily accessible marshmallow so that they could enjoy two marshmallows later, tend to fare better in life as compared to those kids who couldn’t control their urge and grabbed the one marshmallow.

You can easily replace “marshmallow” with “money” in the experiment and the context won’t change. Often, putting off pleasure ‘in the now’ is the difference between failure and success over the long term. The ability to delay gratification is one quality that consistently separates the most successful ones from the not so successful ones.

In the current market situation, we have taken an approach to suffer or take pain in the near term and protect the NAVs, as we see near term risks rising and valuations not supportive.

Impact on Corporate Earnings

The Nifty trailing 12-month earnings per share (EPS) works to be Rs 402 per unit of the index, down 10 per cent since March and the lowest since May last year. The decline in corporate earnings due to the Covid-19 lockdown has also wiped out the gains made from the income-tax cut, which came into effect from the October 2019 quarter. The Nifty EPS was Rs 410 before the tax cut, which increased to ~Rs 450 after that. We attribute the recent surge in the P/E multiple largely to benign liquidity in the market. The process has been fueled by ample liquidity in the market, thanks to unprecedented monetary expansion by major global central banks led by the US Federal Reserve.







At a broader level, the coronavirus has also wiped out most of the gains in corporate earnings made in the last six years. At present, the Nifty EPS is similar to that at the end of March 2014. At that time, the index EPS was Rs 408 per unit, which subsequently declined to around Rs 360 by October 2015 due to the fall in commodity and oil prices in 2014-15.

Volatility to rise

We expect highly volatile months ahead as US elections are on 3rd November 2020. This can create big volatility and probably see significant fall in US markets as well. Contrary to expectations lockdown in India is getting extended, valuations are 50% up from lows, economic contraction clearly visible, most of the promoters are busy selling their stakes, suggests us to be cautious at this juncture.

Global Macro thoughts

The COVID-19 shock is accelerating structural trends in inequality, globalization, macro policy and sustainability. This is fundamentally reshaping the investment landscape and will be key to investor outcomes. The pandemic has supercharged a shift toward sustainability. Assets under management at environmental, social and governance (ESG)-mandated funds in the U.S. exceeded last year’s record levels at the end of May’20, even as markets had sold off.

When we scan global points, that do suggest that economic activity is picking up post lockdown. In the US, car sales have reached 70 percent of the pre-COVID level by May’20. France is experiencing a rebound in consumer spending. In the UK uptick was seen in restaurant and hotel bookings. In many cities, traffic has increased and very close to pre-COVID time. Even China’s PMI for manufacturing for June has shown improvement to 50.9 as compared to 50.6 of May’20. These data points do indicate that economic activities are improving much better than what was earlier expected. Even if there is a second wave of infection, many believe that lockdown henceforth will be more local and area-specific and hence rally should continue.

IMF is not optimistic

On the other hand, IMF recently revised its economic outlook for the world economy, suggesting that the world economy will suffer more due to Covid-19. Last week it revised downwards world GDP growth rate to 4.9 percent compared to April contraction prediction of 3 percent. It expects the recovery to be more gradual. IMF revised downward India GDP too, with GDP to shrink by 4.5 percent. Sanjiv Mehta of HUL, while addressing shareholders at the company’s AGM, stated, “The risk of recession remains real, but we mustn’t take it as a foregone conclusion.” He further added that the government should keep a close watch on the demand situation and step in if it doesn’t revive in the next few months. But Mehta is not alone in expressing fear of slowdown. Many companies in their post result conference have indicated that the demand outlook is uncertain. They expect pre-COVID demand, not before the last quarter of FY21.

How are we thinking about the markets at this juncture?

Global economy recovery lead market up moves will drive Indian markets also as there is a good correlation between US markets and Indian Markets. We should expect intermittent risk-on rallies and then market moving into a rough patch and so on till we see all the major economies coming out of the crisis and moving to pre-covid levels. At present the removal of lockdown in many parts of the world is creating positivity in the markets, PMIs from most of the countries are smartly rebounding, Crude Oil price & other commodity prices also started moving up. Clearly, market trend reversal is seen and we believe markets are poised to create more upsides in the medium to long-term. In India, Kharif sowing has started on a positive note. Rural demand is strong due to the government stimulus package.








Currently, valuation-wise Indian equities look fully valued, there is less margin of safety, and the potential to earn respectable returns is low in the near term. But it offers a good long-term investment opportunity provided you are willing to take a higher calculated risk and have an investment time horizon of at least 4-5 years. Having said that, structuring the portfolio strategically and scheme selection is the key.

The continued rally on the bourses despite dismal economic data after the Covid-19 pandemic is widening the gap between index valuation and underlying fundamentals. Common sense has to prevail at this juncture, as liquidity driven rally has brought a belief to every market participant that all problems are over. We were expecting this rally to happen because of the massive quantum of liquidity pumped in by USA but we are turning cautious from these levels.

We see more downside to happen because of 3 major reasons

1) Valuations have moved up quite a bit, markets are not cheap any more

2) Possibility of volatility rising in the next 4 months as US Elections are nearing

3) Earnings to collapse much beyond our initial estimates as the lockdown got extended, COVID cases rising, Indian Government package not being effective and RBI measures are significantly short of expectations.

We were very bullish and aggressive in our funds till second week of June'20. We have clearly mentioned in our factsheet commentary last month that we will be turning cautious in our funds. Going more overweight on defensive stocks and reducing the equity level & financials exposure further has been done across funds.

As of 30th June 2020, the benchmark NSE Nifty50 index was trading at a trailing price-to-earnings multiple of 26x, more than 50 per cent higher valuation at which it was trading on March 23rd 2020, when it had closed at a three-year low of 7,610 points. Price to Book valuation has also moved up from 1.8x to 2.5x. On 23rd March 2020, the trailing index P/E multiple had declined to 17.2x — the lowest since May 2014. At its current level, the index valuation is now only 15 per cent lower than its record high price-to-earnings multiple of 30x which was achieved on June 3, 2019.

We believe protecting NAVs is more important than being adventurous at this stage. So, we have very high exposure towards defensive sector like IT, Pharma, FMCG and Utilities. Whenever the sector don’t perform our funds may not do well in the near term. This has been the case since 16th June 2020 and it is exactly as per our expectations and want to be like that. Without No pain, there is no gain possible in the market. The party is going on, extended speculation which is seen in cash turnover doubling in 3 months from 40k crores to 87k crores, retail participation going up significantly into direct equity (as most of the working class population is sitting at home and venturing into direct equities - Demat & trading account opening trend clearly suggests that whenever the market turns from current levels it can be brutal.

We believe Small Cap Index can give the best returns in the next 3-5-years period followed by Mid-Caps and then Large-Cap Indices. From an economic recovery perspective “Equity” is the best asset class to invest, provided you have the time and patience on your side. We have less preference for “Fixed Income” as an asset class because of the rating downgrade possibilities that we visualise in the next 6-12 months and if someone wants to park money it can be in arbitrage funds, high quality/sovereign low duration bond funds and overnight/liquid funds.






How does 50:25:25 rule work?

What I learned over the last 30 years of my investing experience is that, I need to follow asset allocation at all points of time i.e. there is a need to invest in different asset classes and different market segments to diversify the risk and the asset allocation should change according to the market situations too.

Investing is a long-term process (5-10 years) and what I like to do is to invest in ITI Mutual Funds on a 50:25:25 rule basis. 50% in ITI Multicap Fund, 25% in ITI Balanced Advantage Fund and 25% in ITI Small Cap Fund. This gives me good comfort on my asset allocation needs. The blended risk adjusted return through this allocation can be interesting from a long-term perspective.

Small Cap allocation is always tactical for me (i.e. at low valuation of the small cap index park money in ITI Small cap Fund and at high market valuation point take out money and move to ITI Balanced Advantage Funds) and other two are more long term oriented. Whenever I see small cap segment is overheated (mostly 4-5 years from now), my plan is to shift the amount from ITI Small cap Fund to ITI Balanced Advantage fund.

So BAF will work as FD+ return category for me, Small Cap fund will work as a tactical alpha generator and Multicap fund allocation works as my long-term equity allocation. ITI balanced advantage fund has 90%+ equity allocation predominantly towards large cap stocks as of now, 4-5 years later probably when the markets again become very expensive, the equity allocation in BAF could be very low then and High Quality Debt & Arbitrage exposure could be very high. My idea is to switch my ITI Small cap tactical allocation to ITI BAF, so overall asset allocation which I want to achieve at the peak of the markets can be achieved.

Where to invest?

Today, the best funds to invest from investor perspective, within ITI Mutual Fund product basket, are ITI BAF, ITI Multi Cap, ITI Small Cap Fund, ITI LTEF, and ITI Liquid/Overnight Fund in that order. ITI BAF and ITI Multi Cap are positioned very conservatively so you don’t need to worry about allocating even lumpsum amounts in these funds.

There are times we want to be aggressive in our funds, so in March'20 we were aggressive and we did try to convince all of you that a reflation rally can happen from April to July’20, which finally happened as per expectation. There are times we want to be defensive so that investor doesn't need to worry about timing the market, fund has to take care of all those needs automatically and investor can keep investing in the funds. Near term performance should not be a consideration for the investor for investing into the fund, this is the mistake most of the investors make while selecting the funds.

We are very bullish on small caps from next 3-5 years perspective. Now if you are allocating money into ITI Small Cap fund you need to stagger the investments for at least 6 months period. 23rd March 2020, we clearly communicated to put lumpsum into all our equity funds, but now you need to stagger your investments when you are looking to invest into small caps.

Products for lumpsum investments at this juncture are ITI BAF and ITI Multicap in our equity basket because of the defensive positioning that we have and can handle market downturn quite comfortably.


OUR INVESTMENT PHILOSOPHY - SQL

Based on our combined investment learnings of more than 50 years, we have institutionalized very strong and unique investment philosophy SQL, this is core to our fund management framework and approach to our portfolios.We strongly believe that good quality (Q), low leverage companies (L) and bought with a reasonable good margin of safety (S) makes the investment very attractive and rewarding for our investors.

OUR RISK MANAGEMENT FRAMEWORKOur risk management frame work & our unique investment philosophy are well thought out and institutionalised to generate superior investment performance and creating a smooth investment experience for all our investors. They are framed based on our own investment experience and also imbibed learnings from some of the great investment houses and investment managers globally, which will stand the test of time and keep our investors interest at high standards. We have put risk limits based on fund mandates, market cap segments, sectors and stocks.

Equity Market OutlookThe intensity of the second wave of coronavirus infection shall be closely tracked by the investors round the world and the buying interest shall be impacted accordingly. With India commencing the Unlock 2 phase from Jul 1, investors are seeing a lot of opportunities in the consumer discretionary companies, which will lead to revival in demand and share prices in certain consumer segment which have been beaten down considerably. Investors are also keenly awaiting more stimulus measures from the policy makers in coming time, as the exit strategy from the lockdown is formulated. Additionally, developments on the potential vaccine for covid-19 treatment shall also be closely tracked. Lastly, market participants are expecting that a normal monsoon may bring smile to the farmers and policy makers alike, with prospects of a bumper crop output.One thing is certain: The global economy will take a big hit in 2020. IMF has projected the global economy to contract by 4.9 percent in 2020. Indian Markets will track global markets as usual and global recovery is important to put the uptrend in order.Market always look ahead. The more relevant question is: How much and what kind of recovery can we expect in 2021? Further market movements will also be impacted by the upcoming announcements of corporate earning numbers for Q1 FY’21 by several blue-chip companies. After taking all points into consideration – Valuation, margin of safety, recovery prospects and economic cycle - our view is that all funds need to be positioned for a recovery. Since market moved up by 30% from bottom, some sort of defence has to be built in the portfolio.






S

Q

L

Margin of Safety

Quality of the Business

Low Leverage

Safety

Quality of the Business

Liquidity

Investment Philosophy Equity Fixed Income







We have learnt from the past that markets will recover much before the economy bottoms out. Therefore, probably markets are in the bottoming out phase or would have already bottomed out by now. Our preference is on all discretionary and recovery sectors like Auto, Auto Ancillaries’, Private Banks, Consumer Goods, Agri/Rural beneficiaries and defensive sectors like Pharma & Healthcare and Technology.We believe highest return generating segment in the market would be Small Caps, followed by Mid-Caps and then Large-Caps on 1,3 and 5-years perspective. Post crisis periods in the past, the returns were generated in this manner and we do expect the same to happen this time as well.

Debt Market Outlook

With shops, malls, industries, construction sites, and offices remaining shut for almost two months due to a complete lockdown imposed by the government for combating the pandemic, there has been a complete destruction of demand. The government now has a difficult job in hand where it needs to spend more or rather spend wisely to prop up the economic growth while maintaining a stable fiscal position.

To spend more, the government needs to borrow more and this is where intervention by the Reserve Bank of India becomes critical as buying of sovereign debt by the central bank will help lower the cost of borrowing for the government. Bond yields thus moving ahead will be determined as to what stance the government and the Reserve Bank of India takes to combat the trail of damage bought about by the COVID-19 pandemic.

Retail inflation will also remain in sharp focus as a subdued inflation will provide scope for further ease in monetary policy in the coming months. On the global front, global crude oil prices which has almost tripled since the end of Apr 2020, transactions trends by foreign portfolio investors, movement of the rupee against the greenback and stance adopted by key central banks across the globe on their respective monetary policies will also dictate the bond yield trajectory moving ahead.

The TLTRO money has been significantly deployed in the corporate bonds by banks but there are signs of fatigue in picking up supply of long-dated G-sec and SDL bonds hence term premium is unlikely to compress unless measures are announced to absorb supply. While the fiscal worries remain on anticipated stimulus measures and slowdown in tax revenues, RBI measures is likely to act as a counterbalancing force and keep gilt prices at short to medium end supported on the back of surplus liquidity and TLTRO.

We believe, the kind of impact on economy in next 6-9 months, can create volatility in fixed income segment. Since RBI has not come up with NPA relaxation measures, the rating downgrades to upgrades ratio will possibly be skewed towards downgrades. Many credits which are considered good today can get into trouble in the coming quarters.

If there is a rapid escalation of the current crisis, then there might be further loss of economic activity which in turn will adversely impact tax collections and further constrain the cash flows to both central and state governments. Ultra-low global crude oil prices and continued measures by the RBI for dealing with the COVID-19 pandemic are expected to provide some support to the debt market sentiment.

Our preference over the last one year has been high quality low duration (1-3 Years residual maturity) bond investments. We believe low duration funds look better placed in this current situation and the risk reward is not in favour of credit risk funds or long duration bond funds at this juncture.


Market ReviewJune 2020

Equity Market Update

Key benchmark indices S&P BSE Sensex and Nifty 50 rose 7.68% and 7.53% to close at 34,915.80 and 10,302.10, respectively. Broader indices S&P BSE Mid-Cap and S&P BSE Small-Cap went up 10.23% and 13.66%, respectively. On the BSE sectoral front, all the major sectors closed in the green. S&P BSE Realty was the top gainer, up 12.04%, followed by S&P BSE Bankex and S&P BSE Auto which rose 9.75% and 8.38%, respectively.Realty sector witnessed strong buying interest, led by positive outlook in the post covid-19 scenario. According to data from the National Securities Depository Ltd, foreign portfolio investors (FPIs) were net buyers of domestic stocks worth Rs. 21,831.62 crores compared with net purchase of Rs. 14,568.77 crores in May 2020.Net inflows in Equity funds (including ELSS, close-ended and interval schemes) fell 17.40% MoM to Rs. 5,046 crores in May 2020.According to the Association of Mutual Funds in India (AMFI), Assets Under Management (AUM) of the equity category mutual funds, including Equity Linked Savings Schemes or ELSS (including close ended and interval schemes), came in at Rs. 6.77 lakh crores in May 2020, down 1.45% MoM.

Indian equity markets had a strong June 2020, on the back of phased resumption of economic activities and continued support from global liquidity and higher risk appetite. The initial positive cues generated from the government announcement of easing of lockdown in a phased manner was somewhat affected by rising cases of covid-19 cases and renewed signs of geo-political tension between India and China at the Ladakh border. Meanwhile, progress of the development of the potential vaccine for covid-19 treatment contributed to the upside. Globally also, equity and commodity markets had a good month. US markets consolidated their gains while emerging markets has a strong performance with MSCI EM Index gaining 6.96%. Brent crude and London Metal Exchange Index (LMEX Index) gained over 8%.Global equity markets rose with investors cheering U.S. Federal Reserve’s announcement on plans to buy up to $750 million worth of broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large companies. However, gains were largely restricted on worries about growth, reports about rising coronavirus infections and geopolitical tensions.

3M 6M 1Y

Change in %

S&P BSE SensexNifty 50S&P BSE 200Nifty 500Nifty Mid CapS&P BSE Small Cap

22.7724.4125.0625.5728.4632.68

1MMonth End

ValueIndex

7.687.537.828.34

10.7813.66

34915.8010302.10

4356.308474.80

14704.0012380.75

-15.98-15.94-14.73-14.61-13.91

-9.29

-11.28-12.52-11.49-12.16-16.59-12.95

3Y

4.132.661.640.57

-6.04-7.03

5Y

4.674.244.474.202.482.25

1M3M6M1Y3Y5Y

21,83229,517

-18,5143,960

47,879100,525

-612-2,05539,24883,188

290,058417,416

Net Flows

Domestic Indices Performance

Net Institutional Flows - Equity (in Rs. Crore)

Source: NSE & BSE

Source: SEBI

FII Flows MF Flows

3M 6M 1Y

Change in %

DJIAS&P 500FTSEDAXCACNikkeiHang SengKOSPIShanghaiMSCI EMMSCI India

17.7719.9510.8925.4212.7316.78

5.4022.78

8.6417.2719.91

1MMonth End

ValueIndex

1.691.841.536.255.121.886.383.884.646.966.63

25813.003100.006169.74

12310.934935.99

22288.1424427.19

2108.332984.67

995.0016.00

-9.55-4.04

-18.68-7.08

-17.49-5.78

-13.74-4.07-1.82

-10.73-17.69

-2.965.39

-16.79-0.70

-10.804.72

-14.31-1.040.19

-5.67-18.37

3Y

6.538.55

-5.50-0.04-1.223.62

-1.76-4.11-2.22-0.52-2.98

5Y

7.938.48

-1.102.380.601.95

-1.430.33

-6.940.47

-0.54

Global Indices Performance

Source: Thomson Reuters Eikon

3M 6M 1Y

Change in %

Nifty AutoNifty BankNifty EnergyNifty FMCGNifty India ConsumptionNifty InfrastructureNifty ITNifty MetalNifty CommoditiesNifty PharmaNifty PSENifty Realty

43.9113.7838.4116.3822.1634.7319.7732.0832.2444.8019.2918.09

1MMonth End

ValueIndex

8.0510.7410.23

2.623.966.585.315.934.882.225.27

12.52

6719.1521370.1514396.5530063.25

4793.503032.35

14754.301991.352860.009985.152493.95

202.65

-19.29-33.95

-9.81-0.54-4.09-7.30-6.47

-28.79-16.7523.53

-22.11-31.64

-15.13-31.09-10.20

1.740.79

-9.92-7.36

-32.96-21.1823.59

-31.59-28.65

3Y

-13.92-2.717.463.963.31

-1.7913.25

-12.67-5.731.30

-12.90-8.37

5Y

-4.323.15

10.108.326.28

-1.405.97

-2.731.48

-3.93-6.662.29

Sectoral Performance

Source: NSE

Nifty 50 - P/E

Nifty 50 - P/B

Source: NSE

Source: NSE


14

20

26

32

Jun-19 Oct-19 Feb-20 Jun-20

2.00

2.70

3.40

4.10

Jun-19 Oct-19 Feb-20 Jun-20


Debt Market Update

Market ReviewJune 2020

India's current account balance became surplus in the Mar quarter of 2020 for the first time in more than a decade. Current account surplus stood at US$ 0.6 billion (0.1% of GDP) in Mar quarter of 2020 compared with a deficit of US$ 4.6 billion (0.7% of GDP) in the corresponding period last year and a deficit of US$ 2.6 billion (0.4% of GDP) in the previous quarter.

Government data showed, India's fiscal deficit stood at Rs 4.66 lakh crore or 58.6% of the budgeted target for the FY21 in the first two months till May 2020. During the similar period, net tax receipts were Rs. 33,850 crore and total expenditure was at Rs. 5.12 lakh crore. The data indicated the government was front-loading its budgeted spending to fight the impact of pandemic.

India's Index of industrial production (IIP) plunged 55.49% YoY in Apr 2020, record low since ever. Manufacturing sector fell 64.26% and mining and electricity sector fell 27.37% and 22.59%, respectively, in Apr 2020.

Liquidity conditions remained favourable during the month under review as the overnight call rate traded much below the policy rate in a range from 2.50% to 3.76% compared with that of the previous month when call rates traded in the range of 2.50% to 4.06%.

Systemic liquidity remained in abundance, with average daily net absorptions under the liquidity adjustment facility (LAF) increasing to Rs. 5.47 lakh crore in June 2020 from Rs. 5.17 lakh crore in May 2020.

Yields on the 10-year U.S. Treasury inched up by 1 bps to close at 0.65% compared to the previous month’s close of 0.64% on hopes of a quick post-pandemic recovery following upbeat economic data from the region and after the U.S.

Yield on gilt securities fell across the maturities by up to 19 bps barring 1-year paper, 11-year paper and 13 to 19-year maturities which increased by up to 12 bps. Yield on corporate bonds fell across the maturities in the range of 12 bps to 118 bps. Difference in spread between corporate bond and gilt securities expanded on 6 and 7-year paper by 3 bps and 1 bps respectively while it contracted across the remaining maturities in the range of 7 bps to 121 bps.

India Yield Curve Shift (Year- on- Year)

1M

3M

6M

1Y

3Y

5Y

-1,545

-37,032

-106,959

-90,148

-74,267

-17,204

41,354

42,259

74,589

335,661

1,139,805

1,813,852

Net Flows

Net Institutional Flows - Debt (in Rs. Crore)

Source: SEBI, NSDL

FII Flows MF Flows

3M 6M 1Y

Change in BPS

10Y GSEC CMT10Y AAA CMT10Y SPREAD*1Y CD3M CD1Y CP3M CP

-25-58-32

-107-172-170-205

1MMonth End

ValueIndex

-13-37-24

6-53-90-60

5.896.91

93.964.053.234.803.75

-67-98-29

-197-212-190-167

-99-148

-46-311-318-320-325

3Y

-62-56

8-264-312-239-294

5Y

-197-167

39-406-453-381-440

Key Domestic Yield Indicators

Source: Thomson Reuters Eikon; *Absolute Change

3M 6M 1Y

Change in %

CPIFOOD & BEVERAGESFUEL & LIGHTHOUSINGCORE CPI

-6.58-2.07-4.93-0.58-4.08

1MApril2020

Index

--1.23-1.50-0.28

-

-7.381.433.66

-

-5.54-1.353.36

-0.83-3.50

-3.055.35

-1.05-1.16-4.23

3Y

-2.187.60

-4.03-1.18-4.14

5Y

-5.012.25

-4.53-0.98-4.36

Inflation Indicators

Source: Thomson Reuters Eikon, Bloomberg

3M 6M 1Y

Change in %

US 2Y CMT YIELD (Change in BPS)US 10Y CMT YIELD (Change in BPS)BrentUSD/INRIIPManufacturing PMIService PMI

Trade DeficitNet Oil ImportsNet Non-Oil Trade DeficitNet Gold ImportsTrade Deficit ex Oil & GoldNET of Principal CommoditiesElectronic Goods

-7-5

174.190.19

-60.09-4.60

-15.60

1MIndex

01

26.49-0.15

-37.1916.4021.10

0.150.65

42.5075.53

-55.4947.2033.70

-141-126

-38.375.97

-57.59-5.50

-19.60

-159-135

-38.379.59

-59.99-4.90

-15.90

3Y

-123-165

-9.8016.67

-58.39N.A.N.A.

5Y

-48-168

-27.7818.46

-57.29N.A.N.A.

182.6992.3490.3524.1066.2549.61

153.3084.6468.6619.6848.98

44.9

-44.69-29.83-14.86

-2.79-12.07-12.19

147.5964.8982.7029.2253.4845.54

97.4647.3750.09

4.6445.4534.69

125.7657.6368.1320.1947.9434.52

140.4095.8444.5717.6626.9129.13

Key Indicators

Source: Thomson Reuters Eikon, Bloomberg

2018 2017 20162019Jan - May2020

2015 2014

10-Yr Benchmark Gsec Bond

Source: Thomson Reuters Eikon

Source: CCIL

US $ Billion

Change in bps June-20 June-19

Month EndValue

-300

-200

-100

0

3.00

4.50

6.00

7.50

1 Yr 5 Yr 10 Yr 20 Yr 30 Yr

Yiel

d (%

)

5.5

6.5

7.5

8.5

Jun-17 Jun-18 Jun-19 Jun-20

Yield

(%)

Multi Cap Fund Ad - A4

47-19

Available on BSE StAR MF, NSE-MFSS, platforms. NSE NMF II and MFU

Portfolio Classification by Net Assets (%)

Debt --

Equity Derivatives -16.52

Equity 80.83

Net Current Assets 2.46

TREPS instruments 11.71

Term Deposits placed as Margins 5.00

Small Cap 2.22

Mid Cap 8.70

Large Cap 67.36

Portfolio Allocation of other asset class (%) Market Capitalisation (% of allocation)

THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING^

Face Value per Unit: Rs. 10 unless otherwise specified; Data is as of June 30, 2020 unless otherwise specified.For scheme and SIP performance refer page 17

FUND FACTSHEET JUNE 2020 10

PORTFOLIO

ITI Multi Cap Fund(An open-ended equity scheme investing acrosslarge cap, mid cap, small cap stocks)

CATEGORY OF SCHEME: Multicap Fund

INVESTMENT OBJECTIVEThe investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio that predominantly invests in equity and equity-related securities of companies across various market capitalisation. However, there can be no assurance that the investment objective of the Scheme will be realised.

SCHEME DETAILS

FUND MANAGER

Inception Date(Date of Allotment):Benchmark:

15-May-19Nifty 500 TRI

Minimum ApplicationAmount:

Load Structure:Entry Load:

Mr. George Heber Joseph (Since 15-May-19)Total Experience: 17 years

AUM (in Rs. Cr): 121.87120.1930.58%49.16%26

NAV as on June 30, 2020

Regular Plan(in Rs.)9.14829.1482

Growth:Dividend:

Direct Plan(in Rs.)9.37189.3718

AAUM (in Rs. Cr):% of top 5 holdings:% of top 10 holdings:No. of scrips:

Mr. Pradeep Gokhale (Since 15-May-19)Total Experience: 24 years

Rs. 1,000/- and in multiples of Re. 1/- thereafter

Nil

Exit Load: If units are redeemed/switched out within 12 months - 1%. Nil thereafter

Name of the Instrument % toNAV

% to NAVDerivatives

-16.52

-2.96

-1.55

1.77

Equity & Equity Related Total

Auto

Maruti Suzuki India Limited

TVS Motor Company Limited

Banks

HDFC Bank Limited

Kotak Mahindra Bank Limited

City Union Bank Limited

Cement

Ambuja Cements Limited

Shree Cement Limited

Chemicals

Pidilite Industries Limited

Consumer Non Durables

Hindustan Unilever Limited

Nestle India Limited

Finance

HDFC Life Insurance Company Limited

Housing Development Finance Corporation Limited

HDFC Asset Management Company Limited

ICICI Lombard General Insurance Company Limited

80.83

2.98

1.61

5.92

1.94

1.87

3.08

2.03

4.52

6.83

3.07

2.99

2.83

1.94

1.92

Name of the Instrument

Pharmaceuticals

Dr. Reddy's Laboratories Limited

GlaxoSmithKline Pharmaceuticals Limited

Alembic Pharmaceuticals Limited

Cipla Limited

Lupin Limited

Power

NTPC Limited

Torrent Power Limited

Software

HCL Technologies Limited

Tata Consultancy Services Limited

Infosys Limited

Larsen & Toubro Infotech Limited

Tata Elxsi Limited

Index Futures

Bank NIFTY Index Futures

Short Term Debt & Net Current Assets

FUND FEATURES

Top Ten Holdings

Long-term capital growthInvestment in equity and equity-related securities of companies across various market capitalization

^Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Computed for the 3-yr period ended June 30, 2020. Based on month-end NAV. * Risk free rate: NA (Source: FIMMDA MIBOR)

PORTFOLIO DETAILS

Total Expense Ratio (TER):

Direct Plan: 0.48%Regular Plan: 2.63%

Including Additional Expenses and Goods and Service Tax on Management Fees

Fund vs Index Overweight / Underweight

June 2020

Fresh, no legacy/no baggage portfolio

Smooth investing experience for the investor

Long term wealth creation focus

NANANA

RISK RATIO

Standard Deviation:Beta:Sharpe Ratio :*

% toNAV

4.09

2.76

2.15

1.98

1.90

2.17

1.86

6.62

4.92

4.10

2.53

2.22

19.17

% to NAVDerivatives

2.34

-2.15

-13.97

Strong expertise in equity research

Differently positioned as a flexi cap within the multicap segment

SQL investment philosophy

When markets are expensive, the fund generally reduces risk and when markets are undervalued fund increases the risk in the portfolio so that risk adjusted return and investor experience becomes smooth and rewarding

NSE 500 ITI Multicap

30.7

4

15.5

7

11.6

9

11.1

3

5.61

5.57

2.80

2.74

2.45

2.39

2.34

2.18

1.42

1.09

0.97

0.48 0.48

0.32

0.03

19.4

1

11.6

7

0.00

20.3

9

0.08

15.2

2

0.00

0.00 5.

11

0.00 1.

88

0.00 0.00 4.

52

0.00

0.00

0.00

0.00

0.00

0

10

20

30

40

Fina

ncial

Ser

vice

s

Cons

umer

Goo

ds

Oil &

Gas IT

Auto

mob

ile

Phar

ma

Cons

truct

ion

Tele

com

Cem

ent &

Cem

ent P

rodu

cts

Met

als

Powe

r

Indu

stria

l Man

ufac

turin

g

Serv

ices

Chem

ical

s

Fert

iliser

s & P

estic

ides

Heal

thca

re S

ervic

es

Med

ia &

Ente

rtain

men

t

Text

iles

Pape

r% of

Net

Ass

et (%

)

87-19

LTEF Ad - A4



Debt --

Equity Derivatives --

Equity 81.89



Term Deposits placed as Margins --

Small Cap 22.90

Mid Cap 12.09

Large Cap 46.90




Face Value per Unit: Rs. 10 unless otherwise specified; Data is as of June 30, 2020 unless otherwise specified.


PORTFOLIO

ITI Long Term Equity Fund(An open ended equity linked saving scheme with a statutory lock-inof 3 years and tax benefit)

CATEGORY OF SCHEME: ELSS Fund

INVESTMENT OBJECTIVETo provide long-term capital appreciation by investing predominantly in equity and equity related securities. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns.

SCHEME DETAILS

FUND MANAGER


18-Oct-19Nifty 500 TRI



Mr. George Heber Joseph (Since 18-Oct-2019)Total Experience: 17 years

AUM (in Rs. Cr): 31.0329.3516.29%29.13%54



Growth:Dividend:



Mr. Pradeep Gokhale (Since 18-Oct-2019)Total Experience: 24 years

Rs. 500/- and in multiples of Rs. 500/- thereafter

NilExit Load: Nil


% to NAVDerivatives

Equity & Equity Related TotalAutoMaruti Suzuki India LimitedMahindra & Mahindra LimitedTVS Motor Company LimitedAuto AncillariesJtekt India LimitedAmara Raja Batteries LimitedBanksHDFC Bank LimitedState Bank of IndiaICICI Bank LimitedCementAmbuja Cements LimitedBirla Corporation LimitedConstructionKNR Constructions LimitedConstruction ProjectEngineers India LimitedLarsen & Toubro LimitedConsumer DurablesOrient Electric LimitedMayur Uniquoters LimitedV-Guard Industries LimitedJohnson Controls - Hitachi Air Conditioning India LimitedConsumer Non DurablesHindustan Unilever LimitedITC LimitedVST Industries LimitedUnited Spirits LimitedAdvanced Enzyme Technologies LimitedNestle India LimitedMarico LimitedFerrous MetalsMishra Dhatu Nigam LimitedRatnamani Metals & Tubes LimitedFinanceHousing Development Finance Corporation LimitedCan Fin Homes LimitedICICI Securities LimitedCentral Depository Services (India) Limited

81.89

2.650.920.45

1.441.43

3.963.452.69

2.700.82

1.37

1.741.33

1.531.500.850.51

3.122.181.510.860.850.850.74

1.020.52

1.931.761.591.18


Industrial ProductsSwaraj Engines LimitedMedia & EntertainmentSun TV Network LimitedMinerals/MiningMOIL LimitedNon - Ferrous MetalsHindustan Zinc LimitedPesticidesBayer Cropscience LimitedRallis India LimitedPetroleum ProductsHindustan Petroleum Corporation LimitedBharat Petroleum Corporation LimitedPharmaceuticalsLupin LimitedDr. Reddy's Laboratories LimitedCadila Healthcare LimitedGlaxoSmithKline Pharmaceuticals LimitedNatco Pharma LimitedPowerNTPC LimitedTorrent Power LimitedRetailingV-Mart Retail LimitedSoftwareWipro LimitedInfosys LimitedBirlasoft LimitedNucleus Software Exports LimitedOracle Financial Services Software LimitedHCL Technologies LimitedTelecom - ServicesBharti Airtel LimitedTextiles - SyntheticGanesha Ecosphere LimitedShort Term Debt & Net Current Assets

Top Ten Holdings

Capital appreciation over long termInvestment in equity and equity related securities



PORTFOLIO DETAILS




June 2020

NANANA

RISK RATIO


% toNAV

0.78

1.96

0.99

1.33

1.101.09

1.681.67

2.911.651.461.111.09

2.231.05

0.87

2.852.571.491.421.200.64

0.79

0.5118.11

% to NAVDerivatives

Long term wealthcreation potential

Benefits of Investing

Tax benefits up toRs. 46,800 underSection 80C*

3yrs

Investors get an opportunity to invest in equities across market caps and sectors

Lowest lock in period of 3 years among all 80C investments

Strong expertise in equity research

Tax saving through SIP builds discipline

NSE 500ITI Long Term Equity Fund

30.7

4

15.5

7

11.6

9

11.1

3

5.61

5.57

2.80

2.74

2.45

2.39

2.34

2.18

1.42

1.09

0.97

0.48

0.48

0.32

0.03

16.5

6

15.3

7

3.35

10.1

7

6.89 8.22

4.44

0.79 3.

52 3.86

3.28

0.78

0.00

0.00 2.

19

0.00 1.

96

0.51

0.00

0.00

10.00

20.00

30.00

40.00

Fina

ncial

Ser

vice

s

Cons

umer

Goo

ds

Oil &

Gas IT

Auto

mob

ile

Phar

ma

Cons

truct

ion

Tele

com

Cem

ent &

Cem

ent P

rodu

cts

Met

als

Powe

r

Indu

stria

l Man

ufac

turin

g

Serv

ices

Chem

ical

s

Fert

iliser

s & P

estic

ides

Heal

thca

re S

ervic

es

Med

ia &

Ente

rtain

men

t

Text

iles

Pape

r

% of

Net

Ass

et (%

)


Debt --

Equity Derivatives -12.13

Equity 86.01



Term Deposits placed as Margins --

Small Cap 83.96

Mid Cap 2.05

Large Cap --




PORTFOLIO Name of the Instrument % to

NAV% to NAV

DerivativesEquity & Equity Related TotalAutoV.S.T Tillers Tractors LimitedAtul Auto LimitedAuto AncillariesJtekt India LimitedIgarashi Motors India LimitedJamna Auto Industries LimitedSuprajit Engineering LimitedBanksCity Union Bank LimitedCementRamco Industries LimitedChemicalsRain Industries LimitedPlastiblends India LimitedConstructionKNR Constructions LimitedNBCC (India) LimitedAshiana Housing LimitedMahindra Lifespace Developers LimitedAhluwalia Contracts (India) LimitedConstruction ProjectEngineers India LimitedAshoka Buildcon LimitedConsumer DurablesLa Opala RG LimitedJohnson Controls - Hitachi Air Conditioning India LimitedAcrysil LimitedVIP Industries LimitedHawkins Cookers LimitedMayur Uniquoters LimitedBlue Star LimitedConsumer Non DurablesKaveri Seed Company LimitedDCM Shriram LimitedVST Industries LimitedBajaj Consumer Care LimitedAvanti Feeds LimitedDFM Foods LimitedFerrous MetalsAPL Apollo Tubes LimitedMishra Dhatu Nigam LimitedRatnamani Metals & Tubes LimitedTata Steel Long Products LimitedJindal Saw LimitedFinanceGeojit Financial Services LimitedBSE LimitedIndian Energy Exchange LimitedICRA LimitedCan Fin Homes LimitedCARE Ratings LimitedCentral Depository Services (India) Limited

86.01

1.430.55

2.971.851.170.96

2.05

0.18

1.000.03

1.070.990.200.200.12

3.331.76

2.972.591.681.301.241.201.19

2.922.141.770.770.550.03

1.721.670.610.420.29

2.431.471.361.240.990.620.47

-12.13


GasAegis Logistics LimitedHealthcare ServicesKMC Speciality Hospitals (India) LimitedHotels, Resorts And Other Recreational ActivitiesWestlife Development LimitedIndustrial Capital GoodsLakshmi Machine Works LimitedTriveni Turbine LimitedIndustrial ProductsFinolex Cables LimitedEsab India LimitedVesuvius India LimitedKirloskar Oil Engines LimitedSwaraj Engines LimitedFinolex Industries LimitedMold-Tek Packaging LimitedMahindra EPC Irrigation LimitedGreaves Cotton LimitedMinerals/MiningGujarat Mineral Development Corporation LimitedPesticidesRallis India LimitedDhanuka Agritech LimitedPetroleum ProductsChennai Petroleum Corporation LimitedGulf Oil Lubricants India LimitedRetailingV-Mart Retail LimitedServicesMatrimony.Com LimitedSoftwareTata Elxsi LimitedCyient LimitedeClerx Services LimitedBirlasoft LimitedNucleus Software Exports LimitedPersistent Systems LimitedTextiles - CottonVardhman Textiles LimitedTextiles - SyntheticGanesha Ecosphere LimitedTransportationBlue Dart Express LimitedIndex FuturesBank NIFTY Index FuturesNIFTY 50 Index FuturesShort Term Debt & Net Current Assets

0.61

0.13

1.97

1.370.89

2.491.730.840.710.570.510.500.400.35

0.47

3.251.15

2.460.52

0.99

0.97

2.292.200.950.720.670.43

0.32

0.67

1.38

13.99

% toNAV

% to NAVDerivatives

Top Ten Holdings

June 2020

JUNE 2020 12

ITI Small Cap Fund(An open ended equity scheme predominantly investing in small cap stocks)

INVESTMENT OBJECTIVE

The investment objective of the Scheme is to generate capital appreciation by predominantly investing in equity and equity related securities of small cap companies. However, there can be no assurance that the investment objective of the scheme would be achieved.

SCHEME DETAILS

FUND MANAGER

AUM (in Rs. Cr): 201.36192.8715.44%27.70%72


PORTFOLIO DETAILS

Benchmark:17-Feb-20Nifty Smallcap 100 TRI


Load Structure:


Entry Load: NilExit Load:


Mr. George Heber Joseph (Since 17-Feb-20)Total Experience: 17 yearsMr. Pradeep Gokhale (Since 17-Feb-20)Total Experience: 24 years


NANANA

RISK RATIO



THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING


CATEGORY OF SCHEME: SMALL CAP FUND


GrowthDividend


Capital appreciation over long term

Investment in a diversified portfolio predominantly consisting of equity and equity related instruments of small cap companies


FUND FACTSHEET


^

Inception Date(Date of Allotment):

If units are redeemed/switched out within 12 months - 1%. Nil thereafter

NSE SC 100ITI Small Cap Fund

-11.48-0.65

14.4

6

13.7

6

10.5

6

10.1

2

8.90

7.36

6.98

5.38

3.82

3.28

3.13

2.28

2.26

0.87 1.89

1.68

1.32

1.10

0.85

10.6

3

21.3

4

7.67

7.26

1.03

0.00

10.3

6

4.40

0.00

0.18

4.32 5.18

0.99

0.00

0.13

0.00

3.59

8.93

0.00

0.00

10.00

20.00

30.00

Fina

ncial

Ser

vice

s

Cons

umer

Goo

ds

Cons

truct

ion IT

Chem

ical

s

Phar

ma

Indu

stria

l Man

ufac

turin

g

Fert

iliser

s & P

estic

ides

Med

ia &

Ente

rtain

men

t

Cem

ent &

Cem

ent P

rodu

cts

Serv

ices

Met

als

Text

iles

Pape

r

Heal

thca

re S

ervic

es

Tele

com

Oil &

Gas

Auto

mob

il e

Powe

r

% of

Net

Ass

et (%

)

135-19

BAF Ad - A4



Debt --

Net Equity 39.65

Gross Equity 67.06



Term Deposits placed as Margins 2.79

Small Cap --

Mid Cap 15.41

Large Cap 51.65


ITI BAF vs Nifty 50 Index Overweight / Underweight

Nifty 50 Index Trailing P/BV Ratio vs ITI BAF Net Equity Level




PORTFOLIO

ITI Balanced Advantage Fund(An open ended dynamic asset allocation fund)

CATEGORY OF SCHEME: Balanced Advantage

INVESTMENT OBJECTIVEThe investment objective of the Scheme is to seek capital appreciation by investing in equity and equity related securities and fixed income instruments. The allocation between equity instruments and fixed income will be managed dynamically so as to provide investors with long term capital appreciation. However, there can be no assurance that the investment objective of the scheme will be realized.

SCHEME DETAILS

FUND MANAGER


31-Dec-19CRISIL Hybrid 50+50– Moderate Index

Minimum ApplicationAmount:Load Structure:Entry Load:

Mr. George Heber Joseph (Since 31-Dec-19)Total Experience: 17 years

AUM (in Rs. Cr)AAUM (in Rs. Cr)% of Top 5 holdings% of Top 10 holdingsNo. of scrips

213.37212.2227.85%46.88%22



Growth:Dividend:


Mr. Pradeep Gokhale (Since 31-Dec-19)Total Experience: 24 years

Rs.5,000/- and in multiples of Re.1/- thereafter

NilExit Load: 10% of the units allotted may be

redeemed without any exit load, on or before completion of 12 months from the date of allotment of units. Any redemption in excess of such limit in the first 12 months from the date of allotment shall be subject to the following exit load: 1% if redeemed or switched out on or before completion of 12 months from the date of allotment of units; Nil thereafter.


% to NAVDerivatives

-23.04

-1.60

4.13

1.84

Equity & Equity Related TotalBanksHDFC Bank LimitedCity Union Bank LimitedCementAmbuja Cements LimitedUltraTech Cement LimitedChemicalsPidilite Industries LimitedConsumer Non DurablesNestle India LimitedHindustan Unilever LimitedFinanceHDFC Asset Management Company LimitedHousing Development Finance Corporation LimitedICICI Lombard General Insurance Company LimitedGasIndraprastha Gas LimitedPesticidesPI Industries LimitedPharmaceuticalsAlembic Pharmaceuticals LimitedGlaxoSmithKline Pharmaceuticals LimitedLupin LimitedSanofi India LimitedPowerTorrent Power LimitedRetailingAvenue Supermarts Limited

62.69

6.011.91

3.191.61

4.32

4.861.97

1.961.891.84

0.88

2.02

3.451.921.921.57

3.66

1.78


SoftwareTata Consultancy Services LimitedInfosys LimitedHCL Technologies LimitedOracle Financial Services Software LimitedIndex FuturesNIFTY 50 Index FuturesBank NIFTY Index FuturesDebt InstrumentsShort Term Debt & Net Current Assets

6.554.333.841.21

37.31

-13.57-13.84

Capital appreciation while generating income over medium to long termDynamic Asset allocation between equity, equity related Instruments and fixed income instruments so as to provide with long term capital appreciation


PORTFOLIO DETAILS




June 2020

% toNAV

% to NAVDerivatives

Top Ten Holdings

:::::

Nifty 50

ITI Balanced Advantage Fund34.3

8

14.7

6

14.1

6

13.4

6

5.53

3.53

3.03

2.66

2.58

2.31

2.10

0.60

0.54 0.36

0.00 0.00

0.00

0.00

0.00

13.6

1

0.88

15.9

3

12.7

4

0.00

0.00

10.7

0

0.00 0.00 3.

20 3.66

0.00 2.

02

0.00

4.32

0.00

0.00

0.00

0.00

0.00

15.00

30.00

45.00

Fina

ncial

Ser

vice

s

Oil &

Gas IT

Cons

umer

Goo

ds

Auto

mob

ile

Tele

com

Phar

ma

Cons

truct

ion

Met

als

Cem

ent &

Cem

ent P

rodu

cts

Powe

r

Serv

ices

Fert

iliser

s & P

estic

ides

Med

ia &

Ente

rtain

men

t

Chem

ical

s

Heal

thca

re S

ervic

es

Indu

stria

l Man

ufac

turin

g

Pap e

r

Text

iles

% of

Net

Ass

et (%

)

2.912.73

2.04

2.34

2.27

2.463

52.81

64.37

96.17 96.9190.41

39.6530

60

90

120

1.60

2.20

2.80

3.40

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Nifty 50 Index Trailing P/BV Ratio ITI BAF

Arbitrage Fund Ad - A4





PORTFOLIO

ITI Arbitrage Fund(An open ended scheme investing in arbitrage opportunities)

CATEGORY OF SCHEME: Arbitrage Fund

INVESTMENT OBJECTIVEThe investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized.

SCHEME DETAILS

FUND MANAGER


09-Sep-19Nifty 50 Arbitrage Index



Mr. George Heber Joseph (Since 09-Sep-19)Total Experience: 17 years

AUM (in Rs. Cr): 15.4314.56


Regular Plan(in Rs.)

10.357010.3570

Growth:Dividend:

Direct Plan(in Rs.)

10.419910.4199

AAUM (in Rs. Cr):

Mr. Milan Mody (Since 09-Sep-19)Total Experience: 17 years


NilExit Load: If the Units are redeemed/ switched out on or

before 30 days from the date of allotment - 0.25%If the Units are redeemed/switched out after 30 days from the date of allotment - NIL (w.e.f. Nov 1, 2019)


% to NAVDerivatives

-65.55

-3.39

-1.40-0.74

-2.15-0.76

-3.55

-7.61

-2.35-0.39

-4.43

Equity & Equity Related TotalAutoMaruti Suzuki India LimitedBanksThe Federal Bank LimitedIndusInd Bank LimitedCementACC LimitedGrasim Industries LimitedChemicalsPidilite Industries LimitedConsumer Non DurablesHindustan Unilever LimitedFinanceSBI Life Insurance Company LimitedHDFC Life Insurance Company LimitedGasGAIL (India) Limited

65.70

3.40

1.400.74

2.160.76

3.56

7.63

2.350.39

4.44


Industrial Capital GoodsBharat Heavy Electricals LimitedMinerals/MiningNMDC LimitedNon - Ferrous MetalsVedanta LimitedPetroleum ProductsReliance Industries LimitedPharmaceuticalsLupin LimitedDivi's Laboratories LimitedSoftwareTech Mahindra LimitedTelecom - ServicesBharti Airtel LimitedTradingAdani Enterprises LimitedShort Term Debt & Net Current Assets

To generate income by predominantly investing in arbitrage opportunitiesInvestments predominantly in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments



PORTFOLIO DETAILS




June 2020

NANANA

RISK RATIO


% toNAV

0.97

2.11

8.98

3.90

7.032.36

1.27

7.39

4.8634.30

% to NAVDerivatives

-0.97

-2.11

-8.98

-3.89

-6.98-2.36

-1.25

-7.38

-4.86

Lowest risk product in Equity segment

Fully hedged portfolio Better liquidity

Reasons to Invest

Zero credit risk on Arbitrage investments

Ideal investment option forinvestors with short tomedium term investmenthorizon

Tax efficient returns with low volatility

Alternate option toLiquid Fund andBank FD

Market neutral strategy

Net Current Assets 0.60TREPS instruments 11.02Term Deposits placed as Margins 22.68

Portfolio Allocation of other asset class (%)

Note for ICRA A1 + mfs: Schemes with this rating are considered to have very strong degree of safety regarding timely receipt of payments from the investments that they have made. This rating should however, not be construed as an indication of the performance of the Mutual Fund scheme or of volatility in its returns.

June 2020

JUNE 2020 15

PORTFOLIO

ITI Overnight Fund(An open ended debt scheme investing in overnight securities)


The investment objective of the Scheme is to provide reasonable returns commensurate with low risk and providing a high level of liquidity, through investments made primarily in overnight securities having maturity of 1 business day. However there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

SCHEME DETAILS

FUND MANAGER

PORTFOLIO DETAILS

Benchmark:25-Oct-19CRISIL Overnight Index


Load Structure:


Entry Load: NilExit Load: Nil


Mr. George Heber Joseph (Since 25-Oct-19)Total Experience: 17 yearsMr. Milan Mody (Since 25-Oct-19)Total Experience: 17 years

AUM (in Rs. Cr): 9.7732.26



AAUM (in Rs. Cr):

Average Maturity:Macaulay Duration:Yield to Maturity:

0.99 Days0.98 Days3.00%


Name of the Instrument Ratings % toNAV

99.220.78

100.00

Debt InstrumentsReverse Repo/TREPSThe Clearing Corporation of India Ltd.Net Current AssetsTotal Net Assets

NANA

Market Value(Rs. Lakhs)

969.007.61

Portfolio Composition by Asset Class (%) Portfolio Classification by Rating Class (%)

CATEGORY OF SCHEME: Overnight Fund

QUANTITATIVE DATA


1026.83001001.00001001.00681001.31011001.30831026.8480

GrowthDaily DividendWeekly DividendFortnightly DividendMonthly DividendAnnual Dividend

Direct Plan(in Rs.)

1027.53031001.00381001.0096

--1001.31681020.1140

Regular income with low risk and high level of liquidityInvestment in money market and debt instruments with overnight maturity


FUND FACTSHEET


Face Value per Unit: Rs. 1000 unless otherwise specified; CD - Certificate of Deposit; CP - Commercial Papers;Data is as of June 30, 2020 unless otherwise specified.

^


Reverse Repo/TREPS 99.22%

Net CurrentAssets 0.78%

Cash & cashequivalent, 100.00%

Record Date

Pursuant to payment of dividend, the NAV of the Dividend Option(s) of the Scheme/Plan(s) falls to the extent of payout and statutory levy, if any. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. For complete list of dividends, visit www.itimf.com.

Dividend History (Past 3 months)

27-Apr-2027-Apr-2026-May-2026-May-2025-Jun-2025-Jun-20

Plan(s) Option(s)Regular Plan - Monthly Dividend OptionDirect Plan - Monthly Dividend OptionRegular Plan - Monthly Dividend OptionDirect Plan - Monthly Dividend OptionRegular Plan - Monthly Dividend OptionDirect Plan - Monthly Dividend Option

Individuals/ HUF (Dividend)(Rs per unit)

Others (Dividend)(Rs per unit)

Cum-Dividend NAV(Rs per unit)

2.05622.12042.35502.41512.30642.3667

2.05622.12042.35502.41512.30642.3667

1003.05621003.12141003.3551003.41611003.30641003.3677

ICRARating:

A1+ mfs

Key Benefits of Overnight Funds

Enables investors to earn same day returns since purchase takes place on previous day’s NAV

Same day returns

The fund provides highest liquidity within the fixed income mutual fund product segment with redemption on T+ 1

Highest liquidity

Positioned to deliver consistent and reasonable risk adjusted performance compared to traditional saving instruments

Efficient risk adjustedperformance

Carries effectively least interestrate/mark to market risk & lowest credit default risk

Lowest risk fund

Offers overnight liquidity without any exit load

No lock in period& no exit load

For scheme performance refer page 17

June 2020

Comparatively higher risk adjusted returns vis a vis savings accounts

Disciplined risk management

Low Risk

Hedge in rising interest rate scenario

Daily accrual High liquidity

High credit qualitydebt papers

JUNE 2020 16

FUND FEATURES

PORTFOLIO

ITI Liquid Fund(An open-ended liquid Scheme)


The investment objective of the Scheme is to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be realised.

SCHEME DETAILS

FUND MANAGER

PORTFOLIO DETAILS

Benchmark:24-Apr-19CRISIL Liquid Fund Index


Load Structure:


Entry Load: NilExit Load: Investor exit upon

subscriptionUp to Day 1Day 2Day 3Day 4Day 5Day 6Day 7 onwards

Exit Load %0.0070%0.0065%0.0060%0.0055%0.0050%0.0045%0.0000%


Mr. George Heber Joseph (Since 24-Apr-19)Total Experience: 17 yearsMr. Milan Mody (Since 24-Apr-19)Total Experience: 17 years

AUM (in Rs. Cr): 34.3833.14



AAUM (in Rs. Cr):

Average Maturity:Macaulay Duration:Yield to Maturity:

3.17 Days3.13 Days2.95%


Name of the Instrument Ratings % toNAV

14.53

84.620.85

100.00

Debt InstrumentsT Bill91 Days Treasury BillReverse Repo/TREPSThe Clearing Corporation of India Ltd.Net Current AssetsTotal Net Assets

Sovereign

NANA

Market Value(Rs. Lakhs)

499.39

2909.0029.26

Portfolio Composition by Asset Class (%) Portfolio Classification by Rating Class (%)

CATEGORY OF SCHEME: Liquid Fund

QUANTITATIVE DATA


1054.99381001.00001001.00001008.90151001.31351056.8398

GrowthDaily DividendWeekly DividendFortnightly DividendMonthly DividendAnnual Dividend

Direct Plan(in Rs.)

1056.37081001.32331001.00001001.33821001.32571056.3838

Income over short term.Investment in money market and debt instruments.


FUND FACTSHEET


Face Value per Unit: Rs. 1000 unless otherwise specified; CD - Certificate of Deposit; CP - Commercial Papers;Data is as of June 30, 2020 unless otherwise specified.

^


Cash &Cash Equivalent85.47%

Sovereign14.53%

ICRARating:

A1+ mfs

Note for ICRA A1 + mfs: Schemes with this rating are considered to have very strong degree of safety regarding timely receipt of payments from the investments that they have made. This rating should however, not be construed as an indication of the performance of the Mutual Fund scheme or of volatility in its returns.

Reasons to Invest

Differentiation with a fresh thinking and no baggage portfolio

Stringent Internal research will prevail over external ratings by credit rating agencies. As per our internal research, only select AAA/A1+ rated papers available in the market would pass muster of our credit criteria as part of SQL philosophy

Ideal Short Term Parking Avenue and also for smart risk efficient asset allocation strategies with the objective of long term wealth creation

SQL Investment Philosophy - Safety, Quality and Liquidity are primary focus to enable smooth investing experience

Debt fund with lowest risk and no legacy

Overnight Liquidity Smooth investing experience for the investor

Reverse Repo/TREPS 84.62%

Record Date

Pursuant to payment of dividend, the NAV of the Dividend Option(s) of the Scheme/Plan(s) falls to the extent of payout and statutory levy, if any. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. For complete list of dividends, visit www.itimf.com.

Dividend History (Past 3 months)

27-Apr-20

27-Apr-20

26-May-20

26-May-20

25-Jun-20

25-Jun-20

Plan(s) Option(s)

Regular Plan - Monthly Dividend Option

Direct Plan - Monthly Dividend Option





Individuals/ HUF (Dividend)(Rs per unit)

Others (Dividend)(Rs per unit)

Cum-Dividend NAV(Rs per unit)

1.8814

1.9753

2.2258

2.3106

2.1996

2.2883

1.8814

1.9753

2.2258

2.3106

2.1996

2.2883

1002.8817

1002.9753

1003.2261

1003.3106

1003.1999

1003.2883

Treasury Bill14.53%

Net CurrentAssets 0.85%

JUNE 2020 17

ITI Multi Cap Fund

ITI Liquid Fund

Fund PerformanceJune 2020

FUND FACTSHEET

Period

Fund Performance

Fund Performance

Systematic Investment Plan (SIP) Returns

Period

Fund Returns (%)

Amount Invested Fund Value (₹) Fund Returns (%) Benchmark Value (₹) Benchmark Returns (%) Additional BenchmarkValue (₹)

Additional BenchmarkReturns (%)

Benchmark Returns (%) Additional BenchmarkReturns (%) Fund (₹) Benchmark (₹)

Value of Investment of ₹ 10,000

Additional Benchmark (₹)

Period Fund Returns (%) Benchmark Returns (%) Additional BenchmarkReturns (%) Fund (₹) Benchmark (₹)

Value of Investment of ₹ 10,000

Additional Benchmark (₹)

Last 1 Year

Since Inception

Last 1 Year

Since Inception

Last 7 days

Last 15 days

Last 30 days

Last 1 Year

Since Inception

Last 7 days

Last 15 days

Last 30 days

Last 1 Year

Since Inception

2.43%

2.57%

2.68%

4.30%

4.62%

2.54%

2.68%

2.79%

4.41%

4.73%

3.88%

4.28%

4.36%

5.81%

6.07%

3.88%

4.28%

4.36%

5.81%

6.07%

5.45%

4.14%

2.82%

7.70%

7.68%

5.45%

4.14%

2.82%

7.70%

7.68%

10,005

10,011

10,022

10,430

10,462

10,005

10,011

10,023

10,441

10,473

10,007

10,018

10,036

10,581

10,607

10,007

10,018

10,036

10,581

10,607

10,010

10,017

10,023

10,770

10,768

10,010

10,017

10,023

10,770

10,768

-12.69%

-7.58%

-10.78%

-5.59%

-11.13%

-5.46%

-11.13%

-5.46%

-11.51%

-5.59%

-11.51%

-5.59%

8,731

9,242

8,922

9,441

8,887

9,454

8,887

9,454

8,849

9,441

8,849

9,441

Regular - Growth

Regular - Growth

Direct - Growth

Regular - Growth

Direct - Growth

Direct - Growth

Past performance may or may not be sustained in future. Different Plans i.e. Regular Plan and Direct Plan under the scheme have different expense structure. Benchmark: Nifty 500 TRI # Additional Benchmark: Nifty 50 TRI. Mr. George Heber Joseph and Mr. Pradeep Gokhale are jointly managing the scheme since its inception 15th May 2019. Performance details of other scheme(s) managed by the same Fund Managers has not been provided as the scheme has not completed 1 year. Face Value per unit: Rs. 10.

Past performance may or may not be sustained in future. Different Plans i.e. Regular Plan and Direct Plan under the scheme have different expense structure. Benchmark: Nifty 500 TRI # Additional Benchmark: Nifty 50 TRI. For SIP returns, monthly investment of Rs.10,000 invested on the 1st business day of every month has been considered. CAGR Returns (%) are computed after accounting for the cash flow by using the XIRR method (investment internal rate of return).

Past performance may or may not be sustained in future. Different Plans i.e. Regular Plan and Direct Plan under the scheme have different expense structure. Benchmark: CRISIL Liquid Fund Index # Additional Benchmark: CRISIL 1 Year T-Bill Index. Mr. George Heber Joseph and Mr. Milan Mody are jointly managing the scheme since its inception 24th April 2019. Performance details of other scheme(s) managed by the same Fund Managers has not been provided as the scheme has not completed 1 year. Returns less than 1 year period are simple annualized and greater than 1 year are compounded annualized.

Last 1 Year

Since Inception

Last 1 Year

Since Inception

120,000

130,000

120,000

130,000

110,316

118,903

111,576

120,364

-14.66%

-14.46%

-12.79%

-12.59%

116,059

124,716

116,059

124,716

-6.05%

-6.96%

-6.05%

-6.96%

115,269

123,908

115,269

123,908

-7.25%

-8.01%

-7.25%

-8.01%

Glossary

How to read factsheet

Average Maturity: Weighted average maturity of the securities in scheme.

Macaulay Duration (Duration): Macaulay Duration (Duration) measures the price volatility of fixed income securities. It is often used in the comparison of interest rate risk between securities with different coupons and different maturities. It is defined as the weighted average time to cash flows of a bond where the weights are nothing but the present value of the cash flows themselves. It is expressed in years. The duration of a fixed income security is always shorter than its term to maturity, except in the case of zero-coupon securities where they are the same.

Portfolio Yield (Yield To Maturity): Weighted average yield of the securities in a scheme portfolio.

Total Expense Ratio (TER): Total expenses charged to scheme for the month expressed as a percentage to average monthly net assets.

We would like to thank you for your trust in ITI Mutual fund.As part of ITI Mutual Fund's preventive measures on COVID-19 outbreak & advisory issued by Ministry of Health & Family welfare, We encourage you to connect with us on our digital platforms.We request you to submit transactions / requests by using various other modes i.e. AMC website (www.itimf.com) / RTA website http://mfs.kfintech.com/mfs/ /RTA Mobile app / MFU website / MFU mobile application or connect with your financial advisor.If you have any further queries, our phone line is available to assist you between 9:30 a.m. to 6 p.m. from Monday to Friday on 18002669603 (Toll free). Alternatively, you can also e-mail us at [email protected]. We would appreciate your patience while we work on your query and readyto provide satisfactory responses.Thanking you, and assuring you of our best services always.


Portfolio Turnover Ratio: Portfolio Turnover Ratio is the percentage of a fund’s holdings that have changed in a given period. This ratio measures the fund’s trading activity, which is computed by taking the lesser of purchases or sales and dividing it by average monthly net assets.

Tracking Error: Tracking error indicates how closely the portfolio return is tracking the benchmark index return. It measures the deviation between portfolio return and benchmark index return. A lower tracking error indicates portfolio is closely tracking benchmark index and higher tracking error indicates higher deviation of portfolio returns from benchmark index returns.

Risk Free Return: The theoretical rate of return of an investment with safest (zero risk) investment in a country.

Growth and Cumulative option: Growth and Cumulative words are used alternatively.

Fund Manager: An employee of the asset management company such as a mutual fund or life insurer, who manages investments of the scheme. He is usually part of a larger team of fund managers and research analysts.

Application Amount for Fresh Subscription: This is the minimum investment amount for a new investor in a mutual fund scheme.

Minimum Additional Amount: This is the minimum investment amount for an existing investor in a mutual fund scheme.

SIP: SIP or systematic investment plan works on the principle of making periodic investments of a fixed sum. It works similar to a recurring bank deposit. For instance, an investor may opt for a SIP that invests Rs. 500 on every 15th of a month in an equity fund for a period of three years.

NAV: The NAV or the net asset value is the total asset value per unit of the mutual fund after deducting all related and permissible expenses. The NAV is calculated at the end of every business day. It is the value at which an investor enters or exits the mutual fund.

Benchmark: A group of securities, usually a market index, whose performance is used as a standard or benchmark to measure investment performance of mutual funds. Some typical benchmarks include the NIFTY, Sensex, BSE200, NSE500, Crisil Liquid Fund Index and 10-Year Gsec.

Entry Load: A mutual fund may have a sales charge or load at the time of entry and/or exit to compensate the distributor/agent. Entry load is charged when an investor purchases the units of a mutual fund. The entry load is added to the prevailing NAV at the time of investment. For instance, if the NAV is Rs. 100 and the entry load is 1%, the investor will enter the fund at Rs. 101.

(Note: SEBI, vide circular dated June 30, 2009 has abolished entry load and mandated that the upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor).

Exit Load: Exit load is charged when an investor redeems the units of a mutual fund. The exit load is reduced from the prevailing NAV at the time of redemption. The investor will receive redemption proceeds at net value of NAV less Exit Load. For instance, if the NAV is Rs. 100 and the exit load is 1%, the investor will receive Rs. 99.

Yield to Maturity (YTM): The Yield to Maturity or the YTM is the rate of return when a bond is held until maturity. YTM is expressed as an annual rate. The YTM factors in the bond’s current market price, par value, coupon interest rate and time to maturity.

Modified Duration Modified duration is the price sensitivity and the percentage change in price for a unit change in yield.

Standard Deviation: Standard deviation is a statistical measure of the range of an investment’s performance. When a mutual fund has a high standard deviation, it means its range of performance is wide, implying greater volatility.

Sharpe Ratio: The Sharpe Ratio, named after its founder, the Nobel Laureate William Sharpe, is a measure of risk-adjusted returns. It is calculated using standard deviation and excess return to determine reward per unit of risk.

Beta Ratio (Portfolio Beta): Beta is a measure of an investment’s volatility vis-a-vis the market. Beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 implies that the security’s price will be more volatile than the market.

AUM: AUM or assets under management refers to the recent / updated cumulative market value of investments managed by a mutual fund or any investment firm.

Holdings: The holdings or the portfolio is a mutual fund’s latest or updated reported statement of investments/securities. These are usually displayed in terms of percentage to net assets or the rupee value or both. The objective is to give investors an idea of where their money is being invested by the fund manager.

Nature of Scheme: The investment objective and underlying investments determine the nature of the mutual fund scheme. For instance, a mutual fund that aims at generating capital appreciation by investing in stock markets is termed an equity fund or growth fund. Likewise, a mutual fund that aims at capital preservation by investing in debt markets is a debt fund or income fund. Each of these categories may have sub-categories.

Rating Profile: Mutual funds invest in securities after evaluating their creditworthiness as disclosed by the ratings. A depiction of the mutual fund in various investments based on their ratings becomes the rating profile of the fund. Typically, this is a feature of debt funds.

Available on BSE StAR MF, NSE-MFSS platforms., NSE NMF II and MFU

169-20

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