iti - cover page - final low mf... · stock indices are falling as there is no tomorrow and there...

Your partner for long-term wealth creation

MARCH 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.

Dear Partners/Investors,Bright days are ahead, probably markets have already bottomed out or is in the process of bottoming out in the midst of the maximum scare.Stock indices are falling as there is no tomorrow and there is a stampede at the exit door. This time the fall is not restricted to mid or small caps or few sectors. Sea of red colour is visible everywhere.

Stock Markets always look ahead and the long-term smart investors are the ones who will put money to work at this juncture. We want our investors to play smart by making lumpsum investments into our equity funds with 3-5 years view and be a part of the smart money movers.

The reasons for the fall have been three folds:Corona Virus Impact and the effect on various economies are uncertain

Corona Virus medicine/vaccine is not known to anyone

Crude Oil price has fallen ~60% in the last one month expecting an economic slowdown around the world and the impact it has on various economies

ITI Mutual Fund would like to convey this message to all of you.With the headlines screaming in your face about the gravity of the current situation, we strongly believe that you need to look beyond the headlines.Invest with discipline, keep in long term perspective, remember your investment horizon and remain calm in times of distress are the key to long-term investing success.We are confident that all our funds are well poised to generate good risk adjusted returns in the long run.

ITI Mutual Fund view, in the next 3-5 years:Equities stack up as the best asset class to invest and has the potential to generate good long term returns.

Small Cap segment poised to generate maximum returns followed by Mid-Caps and Large Caps.

Small Cap segment returns has the potential to beat large cap returns by a wide margin on 1,3 and 5 years basis.

George Heber JosephCEO & CIO

MARCH 2020 1FUND FACTSHEET

“ I make no attempt to forecast the market – my efforts are devoted to find the undervalued securities” – Warren Buffett

’

‘ ITI Mutual Fund view, in the next 3-5 years:

Equities stack up as the best asset class to investSmall Cap segment poised to generate maximum returnsSmall Cap segment returns has the potential to beat large cap returns by a wide marginAn outstanding opportunity of this decade We can prepare ourselves in this situation for a better tomorrow

Last 3 decades of investing has taught me four important things which has been proven right, time and again:

Respect ValuationLook for TriggersMarkets bottom out in the midst of the scare and market peaks out in the midst of extreme optimismInvesting into a bust and selling into the booms is very important to make big returns

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An outstanding opportunity of this decade: When fundamentals are strong and the market valuations are at the lowest point in two decades, it becomes a very good investment opportunity.

We can prepare ourselves in this situation for a better tomorrow. Nobody knows the bottom of the markets and the extend of corona virus impact, but we can prepare for brighter days ahead. Investing now and waiting it out for the next few years is the only possible way you can be successful.

Last 3 decades of investing has taught me four important things which has been proven right, time and again:

Respect Valuation: When market valuation is very attractive, you have to bet believing that the current economic/ market situation will normalise. Currently, all equity market indices are trading at rock bottom valuations even when compared to global financial crisis periods.

Look for Triggers: Look for possible upside triggers at this juncture. When valuations are expensive look for downside triggers.

Markets bottom out in the midst of the scare and market peaks out in the midst of extreme optimism. At the thick of the problems generally markets bottom out. So, cutting all noise and focusing on long term investing makes a lot of sense.

Investing into a bust and selling into the booms is very important to make big returns. This is the learning from all great investors like Warren Buffett, Seth Klarman, Charlie Munger, Benjamin Graham etc. We are seeing a market bust situation, so it is an attractive time to buy.

HAPPY INVESTING AND BE SAFE. During panic time, investors do make mistakes which they would not have made during the normal time. Unlike 2008 Lehman crisis, this time the worries are on health as well as wealth, so the panic got accentuated.

Few mistakes that investors should avoid during this period: -Don’t throw the towel at the wrong time. This is not the time to redeem your investments. Stay calm and be the smart money mover who invests or doubles up your investments at the bottom valuations.

Don’t mix Risk and Volatility: Risk is high when you invest at an expensive market valuation scenario and therefore permanent loss of capital is more likely. Today the market valuations are quite attractive and the relative valuation risk is quite low, which is conducive for an investor. Volatility is the rapid movement of markets in the short time, which need not be a concern for a long term investor.

After every crisis the sector leadership has changed: What has worked in the previous cycle (last decade) most likely won’t work in the next cycle . We have seen in the past, that the sector that loses fancy does not regain soon.

Don’t make decisions based on hearsay, rumours and baseless assumptions. Stick to basics -Fundamentals, valuations, sentiment and triggers of the market. India still would be the fastest growing country in the world with the best demography, so fundamentals are intact.


“ Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves” – Peter Lynch

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Post Crisis period performance of few Equity Indices:Post the Dotcom crash in the year 2000, NSE Midcap Index moved up 17 times between 2001-2007 period and after the Lehman Crisis in the year 2008, the Index moved up 7 times between 2009-2017 period.

BSE Small Cap Index was up ~158%, BSE Mid Cap Index went up ~146% and Nifty50 Index went up ~90% returns between March’09 to March’10.

When earnings growth picks up from the pessimistic scenario, valuation multiples would improve and therefore the returns can be fabulous across market capitalisations. This is our expectation from equity markets in the coming years.

This is the time to be rational, invest maximum you can according to your risk appetite, ride through the volatile period and make money, so we all can together laugh at volatility next time when it comes. In few years you would be very happy with your decisions.

OUR INVESTMENT PHILOSOPHY - SQLBased on mine and Pradeep Gokhale's 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 OutlookIt is important to understand that market valuation risk was relatively much higher in Jan’18 and it is significantly lower in Mar’20. After massive correction in markets in the last 2 years the valuation across market capitalisation segments have become very attractive therefore we are quite constructive on equities at this point of time.


“ A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control”

– Charlie Munger

S

Q

L

Margin of Safety

Quality of the Business

Low Leverage

Safety

Quality of the Business

Liquidity

Investment Philosophy Equity Fixed Income

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“ A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices”

- Warren Buffett

Investors feared that the covid-19 outbreak could bring economy to a grinding halt. During demonetisation also we have seen significant disruption in the economy and businesses normalised in 2 quarters times. Our base case is that the economy will normalise in next 6 months’ time.

Crude oil price fall, in the last one month, is a big benefit to the Indian economy and also helps in the reduction of the import bill. We have a benign Crude Oil price view for the next 1 year as the global slowdown is visible. This will in-turn benefit Indian Rupee to have an appreciating bias against US Dollar.

The price fall in the last one month is maximum felt in consumer discretionary plays, financials, real estate, construction & infrastructure stocks. We believe domestic early cyclical plays are the best positioned to recover from the fall whenever the recovery happens in the markets. We will be bit cautious on the global cyclical plays and consumer staples sectors. Global cyclicals because of global growth concerns and consumer staples because of super expensive valuation.

We have learnt from the past that markets will recover much before than the economy recovers. Therefore, probably markets are in the bottoming out phase or would have already bottomed out by now. Nobody knows where the market bottom is, but you are investing at one of the lowest market valuation points in history. Therefore, there is more upside risk to markets than downside risk.

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 5years 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 OutlookWe believe, the kind of impact on economy in next 6 months, can create volatility in fixed income segment. 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. Significant liquidity pumped in by RBI and possible forbearance to SME & Corporate loans can support to some extend but can’t alleviate all issues in one shot.

Our preference has been high quality low duration bond investments. We believe switching to low duration funds like overnight funds, liquid funds, ultra-short term funds and short term funds look better placed in this current situation. We think risk reward is not in favour of credit risk funds or long duration bond funds at this juncture.

The domestic debt market sentiment, moving ahead will be determined as to, how the current crisis regarding the coronavirus outbreak across the country pans out. 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. In addition, expenditure is likely to go up if the policymakers decide to adopt further stimulus measures to counter the impact of the coronavirus outbreak on the domestic economic activity and on the general livelihood as well and this might lead to hardening of bond yields.

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.

Market ReviewMarch 2020

Equity Market Update

Key Indian benchmark indices S&P BSE Sensex and Nifty 50 slumped 23.05% and 23.25% to close at 29,468.49 and 8,597.75, respectively. Broader indices were weaker with S&P BSE Mid-Cap and S&P BSE Small-Cap declining 27.60% and 29.91%, respectively.

On the sectoral front, all the BSE sectors ended in deep red. The biggest sectoral losers were S&P BSE Realty (-36.27%), followed by S&P BSE Bankex and S&P BSE Auto, which dropped 34.01% and 30.98%, respectively.

Governments and Central Banks in many countries announced stimulus packages and monetary policy measures to tackle the economic impact of the lock downs and lower economic activity following the Corona virus pandemic. However, investor sentiments remained weak.

According to data from the National Securities Depository Ltd, foreign portfolio investors (FPIs) were net sellers of domestic stocks worth Rs. 61,972.75 crore compared with net purchase of Rs. 1,819.83 crore in Feb 2020.

Net inflows in Equity funds (including ELSS, close-ended and interval schemes) surged 42.16% MoM to Rs. 10,729.86 crore in March 2020.

The domestic equity markets plummeted, triggered by the panic gripped financial markets amid the dual threat of a corona virus-driven global recession and an oil-price war. Both Sensex and Nifty slipped below the 26,000 and 8000 -levels, respectively during the month. Stimulus measures announced the government to cushion the fall did little to improve the buying interest.

Both U.S. and European markets ended the month in deep red, touching a new pandemic crisis lows as investors worried about the economic damage from the outbreak. U.S. markets even witnessed their worst day since the “Black Monday” market crash in 1987 during the month. Much of the European region has been shut down due to the spread of the coronavirus.

March’20 was a tumultuous month for equity markets or for that matter all risk assets worldwide, as panic gripped financial markets amid the dual threat of a corona virus-driven global recession and an oil-price war. MSCI World Index, an index of developed markets declined 13.4% while MSCI emerging market index declined by 15.6% during March. The CRB Commodities Index declined by over 23%, during the month.

3M 6M 1Y

Change in %

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

-28.57-29.34-28.92-29.13-31.57-29.86

1MMonth End

ValueIndex

-23.05-23.25-23.50-24.25-30.28-29.91

29468.498597.753609.836996.75

11703.759608.92

-23.79-25.07-24.71-25.10-26.97-27.04

-23.63-25.85-26.26-27.41-35.67-35.82

3Y

-0.17-2.14-3.29-4.34

-12.03-12.67

5Y

1.060.250.400.05

-2.08-2.47

1M3M6M1Y3Y5Y

-61,973-48,030

-3,0936,152

32,08573,616

28,27639,52439,94490,260

320,041441,438

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

-23.20-20.00-24.80-25.01-26.46-20.04-16.27-20.16

-9.83-23.87-31.36

1MMonth End

ValueIndex

-13.74-12.51-13.81-16.44-17.21-10.53

-9.67-11.69

-4.51-15.61-24.84

21917.002585.005671.969935.844396.12

18917.0123603.48

1754.642750.30

849.0013.00

-18.57-13.17-23.44-20.05-22.57-13.05

-9.54-14.95

-5.33-15.23-27.95

-15.47-8.81

-21.92-13.69-17.71-10.71-18.61-17.90-10.93-19.80-31.65

3Y

1.983.03

-8.16-6.89-4.97-0.52-0.71-6.69-5.14-3.97-7.95

5Y

4.274.56

-3.48-3.65-2.67-0.30-1.06-2.98-6.00-2.73-4.94

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

-42.64-40.48-30.07

-9.30-17.77-27.49-18.46-43.39-33.13-10.74-31.38-41.22

1MMonth End

ValueIndex

-31.47-34.32-18.51

-6.79-16.26-21.61-16.10-29.39-23.89

-5.28-18.49-37.44

4731.3019144.0011124.1527319.20

4076.002360.50

12763.651585.902295.057176.502214.15

175.50

-36.86-34.22-28.24-12.25-17.76-26.43-17.87-35.00-30.71

-4.92-31.74-32.17

-42.98-36.84-32.30

-9.82-15.93-26.23-18.19-47.63-36.47-23.05-37.99-34.58

3Y

-21.75-3.71-1.525.080.65

-8.646.04

-19.98-12.77-11.65-17.95

-6.53

5Y

-11.301.016.126.563.63

-6.191.10

-7.35-2.66

-10.98-8.53-4.08

Sectoral Performance

Source: NSE

Nifty 50 - P/E

Nifty 50 - P/B

Source: NSE

Source: NSE


16

24

32

Mar-19 Jul-19 Nov-19 Mar-20

2.10

2.70

3.30

3.90

Mar-19 Jul-19 Nov-19 Mar-20

Yiel

d (%

)


Debt Market Update

Market ReviewMarch 2020

The Monetary Policy Committee (MPC) lowered the key policy repo rate by 75 bps to 4.40% from the earlier 5.15% in order to combat the coronavirus outbreak across the country and the nationwide lockdown. The reverse repo rate was reduced by 90 bps to 4.0% while the bank rate and the marginal standing facility rate stand reduced at 4.65% from the previous 5.40%.

MPC noted that domestic financial conditions have tightened considerably following the coronavirus outbreak across the country. In order to mitigate this adverse impact, RBI has decided to conduct Targeted Long Term Repos Operations (TLTROs) of up to three years tenor of appropriate sizes for a total amount of up to Rs. 1,00,000 crore at a floating rate linked to the policy repo rate.

RBI also lowered the cash reserve ratio (CRR) of all banks by 100 bps to 3% of net demand and time liabilities. Banks under the marginal standing facility (MSF) can borrow overnight by pledging government securities from the Statutory Liquidity Ratio (SLR) quota by up to 2%.

Liquidity conditions remained favourable during the month under review as the overnight call rate traded in a range from 4.23% to 5.35% compared with that of the previous month when call rates traded in the range of 4.81% to 5.06%.

As on Mar 30, 2020 data from RBI showed that banks’ net average lending to the central bank through the LAF window surged to Rs. 1,83,818.83 crore in Mar 2020 compared to Rs. 51,892.72 crore in Feb 2020. It also conducted two sell-buy swap auctions to inject cumulatively US dollar liquidity into the forex market to the tune of US$ 2.71 billion on Mar 16 and 23. Open market purchase operations of Rs. 10,000 crore on Mar 20 and Rs. 15,000 crore each on Mar 24 and Mar 26 were also conducted to bolster liquidity and smoothen financial conditions.

Yields on the 10-year U.S. Treasury bond plunged 43 bps to close at 0.70% compared with the previous month’s close of 1.13%. U.S. Treasury prices grew as its safe haven appeal improved after the number of coronavirus cases in the U.S. surpassed that of China. The U.S. Federal Reserve announced massive stimulus measures to combat the coronavirus impact on the U.S. economy which also contributed to the upside.

Yield on gilt securities fell across the maturities in the range of 93 bps to 182 bps. Yield on corporate bonds fell across the maturities in the range of 109 bps to 186 bps. The minimum decline was witnessed on 6 and 7-year paper and the maximum decline were witnessed on 1-year paper.

India Yield Curve Shift (Year- on- Year)

1M

3M

6M

1Y

3Y

5Y

-60,376

-69,927

-73,232

-48,710

27,968

16,672

-12256

37964

164566

424766

1181245

1871897

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

-41-58

3-93-10-2038

1MMonth End

ValueIndex

-2331

-12-105

-690

-20

6.147.13

126.385.124.956.505.80

-56-35

-9-130

-94-55

-5

-121-123

20-222-226-160-175

3Y

-52-5521

-155-125

-74-81

5Y

-160-117

92-316-330-229-306

Key Domestic Yield Indicators

Source: Thomson Reuters Eikon; *Absolute Change

3M 6M 1Y

Change in %

CPIFOOD & BEVERAGESFUEL & LIGHTHOUSINGCORE CPI

1.040.728.29

-0.250.58

1MFeb

2020Index

-1.01-2.342.700.04

-0.11

6.589.456.364.244.08

3.306.498.06

-0.60-0.12

4.019.525.12

-0.86-1.21

3Y

2.937.062.46

-0.66-0.67

5Y

1.212.691.64

-0.740.20

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

-135-120

-77.695.668.60

-0.90-4.00

1MIndex

-65-43

-70.364.431.90

-2.70-8.20

0.230.70

15.5075.39

2.0051.8049.30

-139-97

-74.956.65

-2.900.400.60

-205-172

-77.388.980.40

-0.80-2.70

3Y

-103-170

-70.2816.27-1.50

N.A.N.A.

5Y

-33-124

-70.9120.44

0.20N.A.N.A.

182.6992.3490.3524.1066.2549.61

153.3084.6468.6619.6848.98

44.9

25.0217.03

7.992.285.715.82

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 & Feb2020

2015 2014

10-Yr Benchmark Gsec Bond

Source: Thomson Reuters Eikon

Source: CCIL

US $ Billion

Change in bps Mar-20 Mar-19

Month EndValue

-180

-120

-60

0

4.20

5.50

6.80

8.10

1 Yr 5 Yr 10 Yr 20 Yr 30 Yr

Yiel

d (%

)

5.8

6.7

7.5

8.4

Mar-17 Mar-18 Mar-19 Mar-20

Multi Cap Fund Ad - A4

47-19

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

Portflio Classification by Net Assets (%)

Cash & Cash equivalents 0.50Debt --Equity Derivatives 11.09Equity 88.41THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING^

Face Value per Unit: Rs. 10 unless otherwise specified; Data is as of March 31, 2020 unless otherwise specified.

FUND FACTSHEET MARCH 2020 7

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): 89.0397.1835.25%52.69%55

NAV as on March 31, 2020

Regular Plan(in Rs.)7.79317.7931

Growth:Dividend:

Direct Plan(in Rs.)7.93857.9385

AAUM (in Rs. Cr):

NA

% 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

11.09

0.38

1.920.680.50

0.48

Equity & Equity Related TotalAutoMaruti Suzuki India LimitedTVS Motor Company LimitedEicher Motors LimitedEscorts LimitedV.S.T Tillers Tractors LimitedAuto AncillariesMotherson Sumi Systems LimitedExide Industries LimitedJtekt India LimitedSuprajit Engineering LimitedBanksState Bank of IndiaHDFC Bank LimitedICICI Bank LimitedCity Union Bank LimitedIndian BankCementUltraTech Cement LimitedConstructionKNR Constructions LimitedMahindra Lifespace Developers LimitedNBCC (India) LimitedConstruction ProjectLarsen & Toubro LimitedAshoka Buildcon LimitedConsumer DurablesV-Guard Industries LimitedJohnson Controls - Hitachi Air Conditioning India LimitedCrompton Greaves Consumer Electricals LimitedConsumer Non DurablesITC LimitedMarico LimitedFerrous MetalsTata Steel Ltd.FinanceHousing Development Finance Corporation LimitedBajaj Finserv LimitedCan Fin Homes LimitedICICI Securities LimitedNippon Life India Asset Management LimitedMahindra & Mahindra Financial Services LimitedCholamandalam Investment and Finance Company LimitedEquitas Holdings LimitedGeojit Financial Services LimitedBSE Limited

88.41

2.321.080.940.570.24

1.000.650.640.23

5.965.314.700.550.54

2.08

0.490.440.34

2.150.37

1.520.750.70

7.713.63

0.83

3.441.831.701.651.601.301.201.190.910.61

Name of the Instrument

Industrial Capital GoodsBharat Heavy Electricals LimitedIndustrial ProductsCummins India LimitedSchaeffler India LimitedMedia & EntertainmentSun TV Network Ltd.Minerals/MiningCoal India Ltd.Non - Ferrous MetalsHindustan Zinc Ltd.Petroleum ProductsReliance Industries LimitedHindustan Petroleum Corporation LimitedBharat Petroleum Corporation LimitedMangalore Refinery and Petrochemicals LimitedChennai Petroleum Corporation LimitedPharmaceuticalsLupin LimitedNatco Pharma LimitedGlaxoSmithKline Pharmaceuticals LimitedAlembic Pharmaceuticals LimitedPowerNTPC Ltd.ServicesThomas Cook (India) LimitedSoftwareInfosys LimitedOracle Financial Services Software LimitedShort Term Debt & Net Current Assets

FUND FEATURES

Top Ten HoldingsDerivatives are considered at Exposure Level and included in Portfolio Aggregates

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 March 31, 2020. Based on month-end NAV. * Risk free rate: NA (Source: FIMMDA MIBOR)

QUANTITATIVE DATA

PORTFOLIO DETAILS

Total Expense Ratio (TER):

Direct Plan: 0.48%Regular Plan: 2.59%

Including Additional Expenses and Goods and Service Tax on Management Fees

Fund vs Index Overweight / Underweight

Market Capitalisation

March 2020

Fresh, no legacy/no baggage portfolio

Smooth investing experience for the investor

Long term wealth creation focus

Portfolio TurnoverRatio (Last 1 year):

NANANA

RISK RATIO

Standard Deviation:Beta:Sharpe Ratio :*

% toNAV

0.81

0.420.37

4.17

0.74

1.10

3.321.560.920.880.29

3.301.811.650.84

0.59

0.38

2.791.300.50

% to NAVDerivatives

5.15

1.98

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

Large Cap Mid Cap Small Cap(% of allocation)(% of allocation)(% of allocation)

9.6921.2068.61

32.3

3

16.7

1

10.1

9

4.90

5.09

2.98

0.45

11.7

9

2.34

2.38

2.02

2.35

1.43

1.09

0.84 0.53

0.01 2.

30

0.32

35.5

9

14.3

1

14.1

0

8.05

7.60

4.27

4.17

4.09

2.67

2.08

1.60

0.59

0.38

0.00

0.00

0.00

0.00

0.00

0.00

0

10

20

30

40

Fina

ncial

Serv

ices

Cons

umer

Good

s

Oil &

Gas

Auto

mob

ile

Phar

ma

Cons

truct

ion

Med

ia &

Ente

rtain

men

t IT

Met

als

Cem

ent &

Cem

ent P

rodu

cts

Indu

stria

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anuf

actu

ring

Powe

r

Serv

ices

Chem

ical

s

Fert

iliser

s &

Pes

ticid

es

Heal

thca

reSe

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es

Pape

r

Tele

com

Text

iles

% of

Net

Ass

et (%

)

87-19

LTEF Ad - A4



Large Cap Mid Cap Small Cap

(% of allocation)(% of allocation)(% of allocation)

25.4218.3252.91


Cash & Cash equivalents 3.35Debt --Equity Derivatives --Equity 96.65


THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING^



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): 22.0422.9121.73%34.35%69



Growth:Dividend:


AAUM (in Rs. Cr):

NA

% of top 5 holdings:% of top 10 holdings:No. of scrips:

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 LimitedEscorts LimitedTVS Motor Company LimitedAuto AncillariesMotherson Sumi Systems LimitedAmara Raja Batteries LimitedJtekt India LimitedBanksICICI Bank LimitedState Bank of IndiaHDFC Bank LimitedDCB Bank LimitedAxis Bank LimitedIndian BankCementAmbuja Cements LimitedUltraTech Cement LimitedBirla Corporation LimitedCommercial ServicesNesco LimitedConstructionKNR Constructions LimitedBrigade Enterprises LimitedMahindra Lifespace Developers LimitedConstruction ProjectLarsen & Toubro LimitedEngineers India LimitedConsumer DurablesOrient Electric LimitedV-Guard Industries LimitedMayur Uniquoters LimitedBlue Star LimitedJohnson Controls - Hitachi Air Conditioning India LimitedConsumer Non DurablesITC LimitedUnited Spirits LimitedMarico LimitedJubilant Foodworks LimitedFerrous MetalsMishra Dhatu Nigam LimitedRatnamani Metals & Tubes LimitedTata Steel LimitedFinanceHousing Development Finance Corporation LimitedICICI Securities LimitedAavas Financiers LimitedMahindra & Mahindra Financial Services LimitedEquitas Holdings LimitedCholamandalam Investment and Finance Company LimitedCan Fin Homes LimitedCentral Depository Services (India) LimitedICICI Lombard General Insurance Company Limited

96.65

2.751.810.50

1.361.260.98

4.853.583.411.471.331.03

1.311.050.83

0.38

0.980.440.35

2.201.95

1.471.090.960.680.68

4.480.990.810.61

0.660.640.49

2.531.981.891.681.301.191.101.060.98


Industrial Capital GoodsBharat Heavy Electricals LimitedABB India LimitedIndustrial ProductsSwaraj Engines LimitedMedia & EntertainmentSun TV Network Ltd.Minerals/MiningNMDC LimitedMOIL LimitedNon - Ferrous MetalsHindustan Zinc Ltd.PesticidesBayer Cropscience Ltd.Petroleum ProductsReliance Industries LimitedBharat Petroleum Corporation LimitedHindustan Petroleum Corporation LimitedPharmaceuticalsLupin LimitedNatco Pharma LimitedGlaxoSmithKline Pharmaceuticals LimitedAlembic Pharmaceuticals LimitedDishman Carbogen Amcis LimitedPowerNTPC LimitedTorrent Power LimitedRetailingV-Mart Retail LimitedAditya Birla Fashion and Retail LimitedServicesQuess Corp LimitedSoftwareInfosys LimitedNucleus Software Exports LimitedOracle Financial Services Software LimitedHCL Technologies LimitedTelecom - ServicesBharti Airtel LimitedTextiles - SyntheticGanesha Ecosphere Ltd.Short Term Debt & Net Current Assets


Capital appreciation over long termInvestment in equity and equity related securities



QUANTITATIVE DATA

PORTFOLIO DETAILS




March 2020


NANANA

RISK RATIO


% toNAV

0.820.82

0.69

1.96

1.081.02

1.48

0.90

5.411.441.28

1.551.510.740.540.49

1.340.79

1.000.86

1.55

3.161.371.190.71

1.33

0.533.35

% 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 Fund32

.33

16.7

1

4.90 10

.19

11.7

9

2.98

2.34 5.

09

2.38

2.02 2.35

0.45 1.43 2.30

0.84

0.32

1.09

0.53

0.01

29.3

8

13.6

3

8.66

8.13

6.43

5.92

5.37

4.83

3.19

2.33

2.13

1.96 1.93

1.33

0.90 0.53

0.00

0.00

0.00

0.00

10.00

20.00

30.00

40.00

Fina

ncial

Serv

ices

Cons

umer

Goo

ds

Auto

mob

ile

Oil &

Gas IT

Cons

truct

ion

Met

als

Phar

ma

Cem

ent &

Cem

ent

Prod

ucts

Indu

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anuf

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ring

Powe

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Med

ia &

Ente

rtain

men

t

Serv

ices

Tele

com

Fert

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s &Pe

stic

ides

Text

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Chem

ical

s

Heal

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es

Pape

r

% of

Net

Ass

et (%

)





95.182.30--


PORTFOLIO Name of the Instrument % to

NAV% to NAV

Derivatives1.67

1.67

Equity & Equity Related TotalAutoEscorts LimitedV.S.T Tillers Tractors LimitedAtul Auto LimitedAuto AncillariesJtekt India LimitedIgarashi Motors India LimitedJamna Auto Industries LimitedSuprajit Engineering LimitedSubros LimitedBanksIndian BankThe Karnataka Bank LimitedDCB Bank LimitedKarur Vysya Bank LimitedThe South Indian Bank LimitedCementRamco Industries Ltd.ChemicalsBASF India LimitedRain Industries LimitedPlastiblends India LimitedConstructionNBCC (India) LimitedSobha LimitedKNR Constructions LimitedMahindra Lifespace Developers LimitedAshiana Housing LimitedAhluwalia Contracts (India) LimitedConstruction ProjectEngineers India LimitedAshoka Buildcon LimitedConsumer DurablesLa Opala RG LimitedJohnson Controls - Hitachi Air Conditioning India LimitedVIP Industries LimitedBlue Star LimitedMayur Uniquoters LimitedConsumer Non DurablesKaveri Seed Company LimitedBajaj Consumer Care LimitedVST Industries LimitedDCM Shriram LimitedAvanti Feeds LimitedDFM Foods LimitedFerrous MetalsAPL Apollo Tubes LimitedMishra Dhatu Nigam LimitedRatnamani Metals & Tubes LimitedTata Steel Long Products LimitedJindal Saw LimitedFinanceAavas Financiers LimitedEquitas Holdings LimitedICRA LimitedIndian Energy Exchange LimitedCan Fin Homes LimitedBSE LimitedCARE Ratings LimitedGeojit Financial Services Limited

95.81

3.311.250.60

2.051.641.151.000.05

1.991.360.800.440.41

0.17

2.040.990.03

0.930.900.660.240.220.13

3.551.59

2.872.861.621.461.42

1.871.831.501.500.430.04

1.851.150.710.430.31

1.711.431.431.301.080.960.650.51


Central Depository Services (India) LimitedMuthoot Capital Services LimitedGasAegis Logistics Ltd.Healthcare ServicesAster DM Healthcare LimitedHotels, Resorts And Other Recreational ActivitiesWestlife Development Ltd.Industrial Capital GoodsLakshmi Machine Works LimitedTriveni Turbine LimitedIndustrial ProductsFinolex Cables LimitedEsab India LimitedFinolex Industries LimitedVesuvius India LimitedKirloskar Oil Engines LimitedSwaraj Engines LimitedGreaves Cotton LimitedMold-Tek Packaging LimitedMM Forgings LimitedMedia & EntertainmentJagran Prakashan Ltd.Minerals/MiningGujarat Mineral Development Corporation LimitedMiscellaneousAcrysil LimitedHawkins CookersPesticidesRallis India Ltd.Petroleum ProductsChennai Petroleum Corporation LimitedGulf Oil Lubricants India LimitedMangalore Refinery and Petrochemicals LimitedPharmaceuticalsAstraZeneca Pharma India LimitedJB Chemicals & Pharmaceuticals LimitedFDC LimitedRetailingV-Mart Retail Ltd.ServicesMatrimony.Com LimitedThomas Cook (India) LimitedSoftwareTata Elxsi LimitedCyient LimitedPersistent Systems LimitedNucleus Software Exports LimitedTextiles - CottonVardhman Textiles Ltd.Textiles - SyntheticGanesha Ecosphere Ltd.TransportationBlue Dart Express Ltd.Short Term Debt & Net Current Assets

0.500.21

0.65

0.76

2.77

1.491.02

2.381.791.060.990.770.480.400.380.06

0.76

0.49

1.720.73

2.56

2.200.630.59

2.010.290.24

1.08

0.940.38

1.881.210.500.41

0.41

0.66

1.992.52

% toNAV

% to NAVDerivatives


March 2020

MARCH 2020 9

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): 150.20176.6715.69%27.65%86

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

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

* Includes TREPs,Marginal Fixed Deposits and Net Current Assets

NSE SC 100ITI Small Cap Fund


Cash & Cash equivalents 2.52Debt --Equity Derivatives 1.67Equity 95.81

NA

QUANTITATIVE DATA


13.4

6 19.1

6

5.45

2.57

10.0

9

4.53

1.56

1.61

10.9

0

5.94

4.63 5.

65

2.04 2.22 4.

11

4.86

0.00 0.

96

0.25

19.2

1

16.4

5

12.5

4

11.0

5

8.22

6.08

4.94

4.07

4.00

3.06

2.56

2.54

1.07

0.76

0.76

0.17

0.00 0.00

0.00

0.00

10.00

20.00

30.00

Cons

umer

Goo

ds

Fina

ncial

Ser

vice

s

Indu

stria

l Man

ufac

turin

g

Auto

mob

ile

Cons

truct

ion

Serv

ices

Met

als

Oil &

Gas IT

Chem

ical

s

Fert

iliser

s & P

estic

ides

Phar

ma

Text

iles

Heal

thca

re S

ervic

es

Med

ia &

Ente

rtain

men

t

Cem

ent &

Cem

ent P

rodu

cts

Pape

r

Powe

r

Tele

com

% of

Net

Ass

et (%

)

135-19

BAF Ad - A4


ITI BAF vs Nifty 50 Index Overweight / Underweight

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




--12.0284.15


Cash & Cash equivalents 3.83Debt --96.17 Net Equity 96.17Gross Equity




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

178.65197.2835.71%60.20%42



Growth:Dividend:


NA

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

19.04

2.69

0.98

0.922.16

1.15

0.88

0.76

0.73

Equity & Equity Related TotalAutoMaruti Suzuki India LimitedTVS Motor Company LimitedMahindra & Mahindra LimitedAuto AncillariesMotherson Sumi Systems LimitedExide Industries LimitedBanksHDFC Bank LimitedState Bank of IndiaICICI Bank LimitedKotak Mahindra Bank LimitedBank of BarodaCementAmbuja Cements LimitedACC LimitedUltraTech Cement LimitedConstruction ProjectLarsen & Toubro Ltd.Consumer DurablesVoltas LimitedConsumer Non DurablesITC LimitedMarico LimitedUnited Spirits LimitedFerrous MetalsTata Steel LimitedFinanceHousing Development Finance Corporation LimitedHDFC Life Insurance Company LimitedBajaj Finserv LimitedSundaram Finance LimitedMahindra & Mahindra Financial Services LimitedSBI Life Insurance Company LimitedBajaj Holdings & Investment LimitedIndustrial Capital GoodsBharat Electronics LimitedABB India LimitedIndustrial ProductsCummins India LimitedMedia & EntertainmentSun TV Network Limited

77.13

1.921.720.49

0.940.62

9.124.123.522.130.14

0.750.730.45

1.03

0.48

5.301.431.09

5.401.641.611.401.100.610.51

0.190.17

0.54

4.16


Minerals/MiningCoal India LimitedNMDC LimitedNon - Ferrous MetalsHindustan Zinc Ltd.Petroleum ProductsReliance Industries LimitedHindustan Petroleum Corporation LimitedBharat Petroleum Corporation LimitedPharmaceuticalsLupin LimitedNatco Pharma LimitedPowerNTPC LimitedSoftwareInfosys LimitedOracle Financial Services Software LimitedTelecom - ServicesBharti Airtel Limited

5.000.82

0.66

7.040.63

1.461.08

1.60

4.511.02

1.08

1.22

1.05

2.31

1.07

1.21

0.83

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


QUANTITATIVE DATA

PORTFOLIO DETAILS




March 2020


% toNAV

% to NAVDerivatives

Name of the Instrument Market ValueRs. Lakhs

Ratings % toNAV

Debt InstrumentsFixed DepositsAxis Bank Ltd.Short Term Debt & Net Current Assets

250.00 1.402.43


:::::

Nifty 50

ITI Balanced Advantage Fund

2.91

2.73

2.12

52.81

64.37

96.17

50

60

70

80

90

100

1.75

2.00

2.25

2.50

2.75

3.00

Jan-20 Feb-20 Mar-20

Nifty 50 Index Trailing P/BV Ratio ITI BAF

*

In the benchmark index i.e. CRISIL Hybrid 50+50 – Moderate Index, the proportion of Nifty 50 Index is 50%*

36.5

1

12.4

5

14.4

6

4.54

2.52

15.0

4

2.72

0.32 2.

28

2.22 2.79

0.00 3.

13

0.54 0.50

0.00

0.00

0.00

0.00

35.8

7

9.94

9.45

9.36

8.44

6.74

4.85

4.16

2.67

1.93

1.03 0.90

0.83

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

20.00

30.00

40.00

Fina

ncial

Ser

vice

s

Oil &

Gas

Cons

umer

Goo

ds

Auto

mob

ile

Met

als IT

Phar

ma

Med

ia &

Ente

rtain

men

t

Powe

r

Cem

ent &

Cem

ent P

rodu

cts

Cons

truct

ion

Indu

stria

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anuf

actu

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Tele

com

Serv

ices

Fert

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s &Pe

stic

ides

Chem

ical

s

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re S

ervic

es

Pape

r

Text

iles

% of

Net

Ass

et (%

)

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): 10.9523.21


Regular Plan(in Rs.)

10.254110.2541

Growth:Dividend:

Direct Plan(in Rs.)

10.297210.2972

AAUM (in Rs. Cr):

NA

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

-61.70

-6.68-6.06-2.84

-3.71

-2.00

-4.74

-1.25

-6.13

-1.46

Equity & Equity Related TotalBanksAxis Bank LimitedBank of BarodaIndusInd Bank LimitedChemicalsPidilite Industries LimitedConsumer Non DurablesBerger Paints (I) LimitedFinanceBajaj Finserv LimitedNon - Ferrous MetalsVedanta LimitedPetroleum ProductsReliance Industries Ltd.PharmaceuticalsDivi's Laboratories Limited

61.52

6.656.082.82

3.72

2.00

4.72

1.24

6.10

1.45


SoftwareInfosys LimitedInfo Edge (India) LimitedTelecom - ServicesBharti Airtel 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



QUANTITATIVE DATA

PORTFOLIO DETAILS




March 2020


NANANA

RISK RATIO


% toNAV

7.730.37

18.6438.48

% to NAVDerivatives

-7.76-0.37

-18.70

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


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.

March 2020

MARCH 2020 12

Top Ten Holdings

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): 11.6624.98



AAUM (in Rs. Cr):

Average Maturity:Macaulay Duration:Yield to Maturity:

3.00 Days2.03 Days0.32%


Name of the Instrument Ratings % toNAV

100.02

-0.02

100.00

Debt Instruments

Reverse Repo/TREPS

The Clearing Corporation of India Ltd.

Net Current Assets

Total Net Assets

NA

NA

Market Value(Rs. Lakhs)

1165.98

-0.24

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

CATEGORY OF SCHEME: Overnight Fund

QUANTITATIVE DATA


1019.70351001.00001001.00701001.04991001.04731019.8040

GrowthDaily DividendWeekly DividendFortnightly DividendMonthly DividendAnnual Dividend

Direct Plan(in Rs.)

1020.14841001.00381001.00971001.06551001.05531012.7580

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 March 31, 2020 unless otherwise specified.

^


Reverse Repo/TREPS100.02%

Net CurrentAssets -0.02%

Cash & cashequivalent, 100.00%

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

March 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

MARCH 2020 13

FUND FEATURES

Top Ten Holdings

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): 25.6034.73



AAUM (in Rs. Cr):

Average Maturity:Macaulay Duration:Yield to Maturity:

2.96 Days2.00 Days0.69%


Name of the Instrument Ratings % toNAV

98.671.33

100.00

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

NANA

Market Value(Rs. Lakhs)

2525.9134.13

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

CATEGORY OF SCHEME: Liquid Fund

QUANTITATIVE DATA


1048.11741001.00001001.00001006.26811001.06601049.2424

GrowthDaily DividendWeekly DividendFortnightly DividendMonthly DividendAnnual Dividend

Direct Plan(in Rs.)

1049.19781001.32331001.00001001.09261001.07761049.2089

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 March 31, 2020 unless otherwise specified.

^


Cash & cashequivalent100.00%

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

Net CurrentAssets 1.33%

Reverse Repo/TREPS 98.67%

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.

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