iti - cover page - final low mf - factsheet - december... · now is the time to capitalise on it....

Your partner for long-term wealth creation

DECEMBER 2019FUND 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.

George Heber JosephCEO & CIO

“You need patience, discipline and an ability to take losses & adversity without going crazy”.

-Charlie Munger

Happy New Year 2020 to all our wonderful employees, board members, partners and investors.

We believe at the start of this year itself a great opportunity to invest in small cap stocks is knocking at your door. This opportunity generally comes once in 5-6 years period and now is the time to capitalise on it. As a fund house we are taking all measures to bring that good alpha generation opportunity to you as soon as possible. Especially in small caps timing is the key.

YEAR GONE BYYear 2019 has been a marvellous year in the history of ITI Mutual Fund. We have come a long way and have covered many milestones within a short span of time. This was possible only because of the amazing team work & highly driven bunch of employees across all functions and locations. We are happy to share that at the closure of Dec'19 we have crossed fund house AUM of 340 crores predominantly supported by retail money. It includes Equity AUM of Rs. 127.14 crores, Balanced AUM of Rs. 164.26 crores and Debt AUM of Rs. 49.59 crores. The Geographical spread of the AUM from Top 5 cities: 56.74%; Next 10 cities: 26.39%; Next 20 cities: 10.74%; Next 75 cities: 5.44% and Others: 0.69%.

We launched our brand in India on 16th April 2019 and established the brand identity reasonably well, across T-30 & select B30 cities. Our Tag line is "LONG TERM WEALTH CREATORS". This tag line clearly showcases our DNA and what it denotes is that we are here in the mutual fund business from a long term perspective, we want investors to entrust with us with their long term money and we will be thinking long term while managing all our funds.

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.

DECEMBER 2019 1FUND FACTSHEET

“If we avoid the losers, the winners will take care of themselves.”

’

‘SMALL CAP STOCKS INVESTMENT OPPORTUNITY

Our expectations is that in next 3-5 years the earnings growth of various sectors and stocks will improve substantially and that is when the economy will do very well and broad markets starts performing. This brings to the point that this is the time to invest into small cap stocks and the case is quite promising according to us.

A) Absolute valuations are cheap

B) Differential valuations between large caps and small caps are at decade high.

C) Interest rates have come off by 250bps from peak

D) Earnings yield of small caps is much higher than large caps

E) Market capitalisation of small caps as percentage of overall market cap coming down below 10% in Dec'19 shows that the bottom of small caps is somewhere near.

With the economy improving, earnings growth picking up and the broad market performing well can potentially give very attractive returns in the small cap segment in the next 3 years’ time.


-Charlie Munger







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 COMMITMENT TO INVESTORS & FOCUS AREAS

Our commitment to investors is that we will be launching the right product to the investors at the right time and keep good quality portfolios at all points of time. Our entire focus will be on asset management and asset gathering should be an outcome of the good work that we do.

As the managers of public money our main focus in fund management is to avoid the losing periods in the market, avoid losing bets in the market and at the same time have the portfolio excellently managed well to generate superior risk adjusted performance.

We are quite enthused with the kind of response that we have received in the last 8 months of operations from our partners. We are quite happy that we are able to partner with more than 7000 IFAs and through them have more been able to onboard more than 14,000 unique investors.

OUR PHYSICAL PRESENCE

We are already present in 25 cities and have 16 branches already established up and running. It gives us immense pleasure to be present in the market with six unique mutual fund products. They are positioned well from a long term prospective and would enable our investors to generate long term wealth and plan their financial goals.

YEAR AHEAD

We are thrilled and highly motivated when we think about the year 2020. Newer opportunities stares at us to make wealth for our investors and at the same time we are looking to establish further our presence as a serious and transparent player in mutual fund industry.

As we are embracing on to the new year, we are seeing lots of opportunities to create significant alpha in specific market cap segments. We are committed at our fund house level to come up with very innovative and investor centric solutions only to enable our investors a smooth wealth creation journey.

We will make sure that we are able to reach out to all our partners across India through our 48 branches planned in the next financial year so that we can provide excellent service with utmost care. We have already beefed up Head Office functional heads team with experts & professionals from the mutual fund industry and also team under them across India. Our promoters long term commitment to the business is quite promising and that makes the journey far more interesting and enabling us to invest in infrastructure, people, processes and systems.

S

Q

L

Margin of Safety

Quality of the Business

Low Leverage

Safety

Quality of the Business

Liquidity

Investment Philosophy Equity Fixed Income


-Charlie Munger







OUR RISK MANAGEMENT FRAMEWORK

Our 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 based on the 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 caps, sectors and stocks.

OUR ECONOMY

Our economy is going through a lull period

GDP is at 4.5%

Corporate Profitability to GDP is at a 15 year low

Credit growth is anaemic at 8%

IIP growth is negative 3.8%

All of the above points suggests that our economy is cyclically at a multiyear low and we are clearly at the bottom economic cycle which is bound to mean revert in the years to come.

Lots of sectors are at multi decade low growth rates which is not sustainable at current levels and therefore offering great investment opportunities in the equity markets.

SMALL CAP STOCKS INVESTMENT OPPORTUNITY

Our expectations is that in next 3-5 years the earnings growth of various sectors and stocks will improve substantially and that is when the economy will do very well and broad markets starts performing. This brings to the point that this is the time to invest into small cap stocks and the case is quite promising according to us.

A) Absolute valuations are cheap

B) Differential valuations between large caps and small caps are at decade high.

C) Interest rates have come off by 250bps from peak

D) Earnings yield of small caps is much higher than large caps

E) Market capitalisation of small caps as percentage of overall market cap coming down below 10% in Dec'19 shows that the bottom of small caps is somewhere near.

With the economy improving, earnings growth picking up and the broad market performing well can potentially give very attractive returns in the small cap segment in the next 3 years’ time.

Keeping investors interest in mind we are coming up with a small cap fund - NFO on 27th of January 2020 and closing on 10th feb 2020.

We look forward to your continued support and patronage.


-Charlie Munger







WE ARE BULLISH ON MARKETS

Since as an economy we are coming out of a prolonged downturn in capex cycle, protracted impacts of continued government interventions to formalise the economy, interest rates bottoming out and banking sector coming out of the prolonged non-performing loans cycle, we have to be more constructive on markets than before. With this construct we are bullish on our Indian economy as well as equity markets with a 3-5 year perspective and we believe this is not the time to reduce equity allocation whereas increase equity allocation. We see many pocket of opportunities to invest money in the equity markets and many sectors & stocks are at very attractive valuations which we can’t ignore. We strongly believe the next decade will be a strong period to create wealth for our investors as our country GDP is expected to gallop from USD 2.7trillion to USD 8-10 trillion and the per capita income also moves up. Many companies will create huge market caps and the opportunity also could be large that we cannot miss.

Equity Market Outlook

Investors will keep a keen eye on the country’s economic data like inflation and fiscal deficit numbers as the weak second quarter GDP numbers have raised alarm over India’s growth story. All economic cycle bottoms out like this and nothing to worry about. Corporate earnings will reflect India Inc’s health and the third quarter numbers will remain in investor focus. Government has taken many initiatives to boost growth and the month may see more such measures even as the country braces itself for the next Union budget. There have been talks of cutting the goods and services tax (GST) and further simplifying it, among other demands by industries. Whether the government will entertain such request may become clear in Jan 2020. Globally, U.S. and China are slated to sign their phase one deal in the beginning of the month. This may pave way for further cooperation among the world’s two largest economies on trade. Crude oil prices, the movement of the rupee against the U.S. dollar and policy measures will be closely tracked.

We believe our equity funds meet the needs of an investor. ITI Multi Cap funds is for equity allocations across market capitalisations, ITI Long Term Equity Fund is for tax savings & long term equity allocations, ITI Balanced Advantage Fund for consistent returns from asset allocation between Debt & Equity - who doesn't need to bother about markets and now the NFO ITI Small Cap Fund can be for creating an extra alpha by taking calculated risks.

Debt Market Outlook

We believe interest rates have bottomed out and as growth picks up inflation also is likely to pick up. There is a possibility of government loosening fiscal policy to improve growth. We believe, it is advisable to reduce duration risk and invest in high credit quality debt papers with short to medium term maturities.

“The most important thing you can have is a good strategic asset allocation mix. So, what the investor needs to do is to have a balanced, structured portfolio – a portfolio that does in different environments… we don’t know that we’re going to win. We have to have diversified bets”– Ray Dalio

Market ReviewDecember 2019

Equity Market Update

According to data from the National Securities Depository Ltd, foreign portfolio investors (FPIs) were net buyers of domestic stocks worth Rs. 7,338.40 crores in December 2019. For CY19, FPIs bought Indian equities worth more than Rs 101,000 crores as compared to net outflow of over Rs 33,000 crores in CY18.

Since the US Fed meeting in October 2019, emerging markets as also India have seen good inflows from global investors. Since then, we are also seeing reduced divergence between the performance of emerging markets and developed markets. Similarly in India, we have seen improvement in performance of mid and small cap stocks, reducing the gap in performance with the large cap stocks.

Inflows into domestic equity mutual funds remained healthy in CY19 at over Rs. 50,000 Crores. However, inflows in November ’19 were lower at Rs. 933 crores. This trend needs to be monitored as domestic inflows were key stabilising force in Indian equity markets during last two years.

India’s benchmark indices Sensex and Nifty gained 1.13% and 0.93% in December 2019, on the back of strong global cues on hopes of US China trade deal. Performance of broder market indices was mixed with BSE Midcap declining by 0.78% while BSE Small cap gained 1.02%.

Calendar Year 2019 saw Sensex and Nifty registering decent gains of 14% and 12% respectively. However markets were highly polarised in CY19 with a few large cap stocks driving gains in Sensex and Nifty while mid and small cap indices registered negative returns. Performance of broader market has seen some improvement in Q4CY19.

In December 2019, Metals, IT and Realty outperformed the markets. However, for CY19, banking and financial sector were key outperformers with NSE Bank index and NSE Finance index gaining 18% and 26% respectively.

US markets and MSCI Emerging market indices outperformed Indian markets in December 2019 on the back of trade tensions between US and China receding.

3M 6M 1Y

Change in %

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

6.696.055.935.696.724.01

1MMonth End

ValueIndex

1.130.930.630.60

-0.691.02

41253.7412168.45

5078.449872.55

17102.5013699.37

4.723.223.082.22

-3.12-3.79

14.3812.02

9.137.66

-4.32-6.85

3Y

15.7014.1113.0812.22

6.014.38

5Y

8.447.998.177.826.324.32

1M3M6M1Y3Y5Y

7,33844,93722,474

101,121119,747158,119

2,109723

44,24352,977

292,286411,347

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

6.028.531.816.615.298.748.046.534.99

11.354.97

1MMonth End

ValueIndex

1.742.862.670.101.231.567.005.256.207.171.78

28538.443230.787542.44

13249.015978.06

23656.6228189.75

2197.673050.121114.66

19.23

7.299.821.576.867.93

11.19-1.243.152.395.67

-0.83

22.3428.8812.1025.3226.3718.09

9.077.63

22.1015.42

6.12

3Y

13.0212.99

1.834.897.127.378.612.74

-0.588.939.95

5Y

9.879.422.816.206.946.273.612.79

-1.173.113.65

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

10.0810.51

2.62-3.250.011.460.72

14.813.626.52

-0.5315.38

1MMonth End

ValueIndex

2.010.67

-2.00-2.76-0.76-2.054.366.700.01

-1.83-1.075.85

8248.3032161.6515908.2030121.50

4956.603255.30

15652.402801.303432.108040.153226.60

298.55

4.043.40

-0.861.954.23

-3.38-1.78-6.00-5.59-0.31

-11.784.83

-10.6918.4110.98-1.29-0.652.528.39

-11.200.03

-9.34-4.8028.49

3Y

-3.3720.9315.6813.2112.10

6.2714.59

1.834.19

-7.82-4.3921.75

5Y

-0.0811.4012.98

8.398.211.386.891.035.00

-5.99-1.938.00

Sectoral Performance

Source: NSE

Nifty 50 - P/E

Nifty 50 - P/B

Source: NSE

Source: NSE


22

25

28

31

Dec-18 Apr-19 Aug-19 Dec-19

3.10

3.40

3.70

4.00

Dec-18 Apr-19 Aug-19 Dec-19

Yiel

d (%

)


Debt Market Update

Market ReviewDecember 2019

The Monetary Policy Committee kept key policy repo rate unchanged at 5.15% in its fifth bi-monthly monetary policy review while maintaining accommodative stance to revive growth.

India’s CAD (Jul to Sep of 2019) narrowed to $6.3 billion (0.9% of GDP) from $14.2 billion (2.0% of GDP) in the preceding quarter and $19.0 billion (2.9% of GDP) YoY primarily on account of a lower trade deficit at $38.1 billion as compared with $50.0 billion a year ago. Net services receipts grew 0.9% on a yearly basis on the back of a rise in net earnings from computer, travel and financial services.

India's CPI inflation rose to a 40-month high of 5.54% driven by increase in food inflation which climbed 10.01% in November 2019(rural and urban), as against 7.89% in October 2019. Food inflation rose sharply as unusually heavy rains at the end of the monsoon season hit crop yields affected supplies. . The core CPI inflation rose marginally to 3.50% in November 2019 compared with 3.44% reflecting the tepid demand in the economy in October 2019.

India’s IIP shrunk 3.8% (for a third straight month) in Oct 2019 compared with 4.3% in Sep 2019. Manufacturing and electricity declined 2.1% and 12.2% in Oct 2019, respectively, while the mining sector contracted 8.0%. From Apr to Oct 2019, IIP growth eased to 0.5% YoY from 5.7% recorded in the corresponding period last year.

Average net liquidity of the banking system stood at a surplus of Rs. 2.61 lakh crores in Dec 2019 compared to a net surplus of Rs. 2.33 lakh crores in Nov 2019. Overnight call rates remained subdued in the range of 4.69% to 5.13% during December 2019.

Yields on the 10-year U.S. Treasury rose 13 bps to close at 1.91% in December 2019 as growth outlook improved on the back of US and China signing Phase I of the trade deal. The US Federal Reserve held interest rates steady and indicated that no action is likely next year amid persistently low inflation.

The benchmark 10 year G-sec yield closed at 6.55% for the month, 10 bps higher than a month ago. Concerns over likely fiscal slippages, higher market borrowings from state governments (SDL), rising retail inflation along with rise in crude oil prices have pushed G-sec yields higher. Market sentiments were further dampened following comments from a major global rating agency that it may lower India’s rating if the growth of the Indian economy does not come along expected lines.

RBI’s special OMOs for buying long-dated and selling shorter tenure G-sec (operation “twist”) boosted demand for long-dated papers despite persistent fiscal concerns. 10-year G-sec recovered from its intra-month low of 6.80% to 6.50%, post RBI’s announcement. RBI bought total 20k cr of 10-year and sold around 15k cr in one year maturity g-sec under this scheme. Corporate bond spreads over G-Secs reduced by upto 10 bps across most maturities.

India Yield Curve Shift (Year- on- Year)

1M

3M

6M

1Y

3Y

5Y

-4,616

-3,305

16,810

25,880

126,891

129,102

45816.31

126926.33

261395.44

532176.75

1248433.37

2008259.87

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

-14-27-12-40-54-35-43

1MMonth End

ValueIndex

92

-72327

512

6.557.90

123.426.025.356.705.42

-32-50-17

-114-106-130-158

-82-5232

-194-155-210-178

3Y

42723

-56-93-64

-129

5Y

-130-6873

-259-301-232-323

Key Domestic Yield Indicators

Source: Thomson Reuters Eikon; *Absolute Change

3M 6M 1Y

Change in %

CPIFOOD & BEVERAGESFUEL & LIGHTHOUSINGCORE CPI

2.265.70

-0.23-0.35-0.70

1MNov

2019Index

0.921.730.09

-0.090.06

5.548.66

-1.934.493.50

2.496.63

-4.41-0.33-0.73

3.2110.35-9.17-1.50-2.19

3Y

1.916.10

-4.73-0.55-1.40

5Y

2.276.62

-5.42-0.91-1.08

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

24-6

11.440.831.47

-0.200.30

1MIndex

13-4

3.95-0.630.630.603.50

1.911.56

68.9671.27

4.6251.2052.70

-9-18

0.003.421.63

-1.502.50

-78-94

36.532.121.24

-2.80-1.00

3Y

-5236

26.184.880.42N.A.N.A.

5Y

-2689

24.3412.54

0.00N.A.N.A.

147.5964.8982.7029.2253.4845.54

182.6992.3490.3524.1066.25

49.6

129.9370.8759.0614.8644.2038.78

97.4647.3750.09

4.6445.4534.69

125.7657.6368.1320.1947.9434.52

140.4095.8444.5717.6626.9129.13

150.59100.08

50.5119.8030.7124.14

Key Indicators

Source: Thomson Reuters Eikon, Bloomberg

2017 2016 20152018Jan to Nov2019 2014 2013

10-Yr Benchmark Gsec Bond

Source: Thomson Reuters Eikon

Source: CCIL

US $ Billion

Change in bps Dec-19 Dec-18

Month EndValue

-150

-100

-50

0

5.00

6.00

7.00

8.00

1 Yr 5 Yr 10 Yr 20 Yr 30 Yr

Yiel

d (%

)

6.0

6.8

7.6

8.4

Dec-16 Dec-17 Dec-18 Dec-19

THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING^

Face Value per Unit: Rs. 10 unless otherwise specified; Data is as of December 31, 2019 unless otherwise specified.

* Includes TREPs,Marginal Fixed Deposits and Net Current Assets

FUND FACTSHEET DECEMBER 2019 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): 77.8772.3321.96%35.12%94

NAV as on December 31, 2019

Regular Plan(in Rs.)

11.273911.2739

Growth:Dividend:

Direct Plan(in Rs.)

11.422911.4229

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

3.24

0.740.96

0.70

Equity & Equity Related TotalAutoMaruti Suzuki India Ltd.TVS Motor Company Ltd.Mahindra & Mahindra Ltd.Hero MotoCorp Ltd.V.S.T Tillers Tractors Ltd.Escorts Ltd.Auto AncillariesJtekt India Ltd.Motherson Sumi Systems Ltd.Exide Industries Ltd.Suprajit Engineering Ltd.MRF Ltd.BanksState Bank of IndiaHDFC Bank Ltd.ICICI Bank Ltd.Kotak Mahindra Bank Ltd.Axis Bank Ltd.City Union Bank Ltd.Bank of BarodaThe Karnataka Bank Ltd.Yes Bank Ltd.CementUltratech Cement Ltd.Grasim Industries Ltd.Shree Cement Ltd.ChemicalsAtul Ltd.ConstructionMahindra Lifespace Developers Ltd.NBCC (India) Ltd.KNR Constructions Ltd.Godrej Properties Ltd.Construction ProjectLarsen & Toubro Ltd.Ashoka Buildcon Ltd.Consumer DurablesV-Guard Industries Ltd.Crompton Greaves Consumer Electrical LtdJohnson CtrlsHitachi Air Cond India Ltd.Titan Company Ltd.Consumer Non DurablesITC Ltd.Nestle India Ltd.Marico Ltd.Jubilant Foodworks Ltd.United Spirits Ltd.Hindustan Unilever Ltd.Asian Paints Ltd.Coffee Day Enterprises Ltd.Godrej Industries Ltd.Ferrous MetalsTata Steel Ltd.FinanceHousing Development Finance Corp Ltd.Equitas Holdings Ltd.Cholamandalam Investment & Fin Co Ltd.Geojit Financial Services Ltd.ICICI Securities Ltd.Can Fin Homes Ltd.Reliance Nippon Life Asset Mgmt Ltd.

92.32

2.440.710.520.210.190.19

1.170.830.510.460.26

5.353.912.912.112.041.150.880.760.35

1.850.620.52

0.19

1.040.820.720.26

2.761.04

1.540.920.760.72

1.581.260.860.640.560.550.470.450.19

0.77

3.111.481.391.280.900.830.81

Name of the Instrument

Bajaj Holdings & Investment Ltd.HDFC Life Insurance Co. LtdMahindra & Mahindra Financial Serv Ltd.ICICI Prudential Life Insrnce Co. Ltd.Max Financial Services Ltd.ICICI Lombard General Insurance Co. Ltd.GasGAIL (India) Ltd.Aegis Logistics Ltd.Healthcare ServicesDr. Lal Path labs Ltd.Industrial Capital GoodsSiemens Ltd.Bharat Heavy Electricals Ltd.ABB India Ltd.ABB Power Products & Systems India Ltd.Industrial ProductsCummins India Ltd.Schaeffler India Ltd.Supreme Industries Ltd.Bharat Forge Ltd.Media & EntertainmentSun TV Network Ltd.Minerals/MiningCoal India Ltd.Non - Ferrous MetalsHindustan Zinc Ltd.PesticidesPI Industries Ltd.Petroleum ProductsReliance Industries Ltd.PharmaceuticalsNatco Pharma Ltd.Torrent Pharmaceuticals Ltd.Alembic Pharmaceuticals Ltd.Lupin Ltd.Cipla Ltd.PowerNTPC Ltd.RetailingAvenue Supermarts Ltd.Trent Ltd.ServicesQuess Corp Ltd.Thomas Cook (India) Ltd.SoftwareInfosys Ltd.Tata Consultancy Services Ltd.Tata Elxsi Ltd.Oracle Financial Services Software Ltd.Larsen & Toubro Infotech Ltd.HCL Technologies Ltd.Hexaware Technologies Ltd.Cyient Ltd.Telecom - ServicesBharti Airtel Ltd.Textiles - CottonVardhman Textiles Ltd.TransportationBlue Dart Express Ltd.Short Term Debt & Net Current Assets

Market Capitalisation Wise Exposure

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 December 31, 2019. Based on month-end NAV. * Risk free rate: NA (Source: FIMMDA MIBOR)

QUANTITATIVE DATA

PORTFOLIO DETAILS

Total Expense Ratio (TER):

Direct Plan: 0.45%Regular Plan: 2.57%

Including Additional Expenses and Goods and Service Tax on Management Fees

Portfolio Allocation (%)

December 2019

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 :*

% toNAV0.740.720.580.510.450.42

0.710.21

0.63

0.600.450.290.03

0.800.540.510.40

0.48

0.46

1.69

0.37

4.06

1.191.051.030.780.31

0.96

0.260.20

1.090.97

3.641.121.101.090.900.670.540.36

0.90

0.46

0.174.43

% to NAVDerivatives

0.45

0.39

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

Large Cap64.39%

Mid Cap19.32%

Small Cap16.29%

0.17%0.19%0.37%0.46%0.46%0.46%0.48%0.63%0.77%0.90%0.92%0.96%1.37%1.69%2.06%2.26%

2.85%2.99%3.24%

3.80%3.95%4.26%4.36%4.43%4.46%

6.56%9.41%

13.68%21.85%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

BanksFinance

SoftwareConsumer Non Durables

Petroleum ProductsCash and Cash Equivalent*

PharmaceuticalsAuto

Consumer DurablesConstruction Project

Auto AncillariesCement

ConstructionIndustrial Products

ServicesNon - Ferrous Metals

Industrial Capital GoodsPower

GasTelecom - Services

Ferrous MetalsHealthcare Services

Media & EntertainmentMinerals/MiningTextiles - Cotton

RetailingPesticidesChemicals

Transportation

ITI LTEF Key Comm - Size: A4

87-19



* Includes TREPs,Marginal Fixed Deposits and Net Current Assets


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): 18.1516.8223.70%39.34%94



10.496410.4964

Growth:Dividend:

Direct Plan(in Rs.)

10.542910.5429

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 Ltd.Mahindra & Mahindra Ltd.V.S.T Tillers Tractors Ltd.TVS Motor Company Ltd.Auto AncillariesSubros Ltd.Motherson Sumi Systems Ltd.Minda Industries Ltd.Amara Raja Batteries Ltd.Jtekt India Ltd.Endurance Technologies Ltd.BanksHDFC Bank Ltd.ICICI Bank Ltd.State Bank of IndiaAxis Bank Ltd.Kotak Mahindra Bank Ltd.DCB Bank Ltd.CementUltratech Cement Ltd.Ambuja Cements Ltd.Ramco Industries Ltd.Shree Cement Ltd.Grasim Industries Ltd.JK Cement Ltd.ChemicalsAtul Ltd.Commercial ServicesNESCO Ltd.3M India Ltd.ConstructionKNR Constructions Ltd.Godrej Properties Ltd.The Phoenix Mills Ltd.Mahindra Lifespace Developers Ltd.Ashiana Housing Ltd.Construction ProjectLarsen & Toubro Ltd.Consumer DurablesOrient Electric Ltd.Blue Star Ltd.V-Guard Industries Ltd.Crompton Greaves Consumer Electrical LtdConsumer Non DurablesITC Ltd.Godrej Agrovet Ltd.Nestle India Ltd.United Spirits Ltd.Godrej Industries Ltd.Jubilant Foodworks Ltd.Ferrous MetalsTata Steel Ltd.Ratnamani Metals & Tubes Ltd.FinanceHousing Development Finance Corp Ltd.Mahindra & Mahindra Financial Serv Ltd.Bajaj Holdings & Investment Ltd.Central Depository Services (I) Ltd.Max Financial Services Ltd.Equitas Holdings Ltd.

96.07

1.541.010.300.25

1.030.970.890.710.680.36

5.074.923.872.952.930.54

0.670.650.590.560.550.31

0.67

0.620.29

0.820.580.400.300.16

3.14

1.400.710.620.19

2.750.990.850.830.660.46

1.030.93

4.111.361.291.030.910.82


ICICI Prudential Life Insrnce Co. Ltd.Sundaram Finance Ltd.Cholamandalam Financial Holdings Ltd.Cholamandalam Investment & Fin Co Ltd.Can Fin Homes Ltd.Kalyani Investment Company Ltd.Tata Investment Corporation Ltd.Healthcare ServicesAster DM Healthcare Ltd.Industrial Capital GoodsABB India Ltd.Bharat Heavy Electricals Ltd.ABB Power Products & Systems India Ltd.Industrial ProductsCummins India Ltd.Swaraj Engines Ltd.Supreme Industries Ltd.Media & EntertainmentSun TV Network Ltd.Non - Ferrous MetalsHindustan Zinc Ltd.PesticidesPI Industries Ltd.Petroleum ProductsReliance Industries Ltd.Hindustan Petroleum Corporation Ltd.PharmaceuticalsAlembic Pharmaceuticals Ltd.Natco Pharma Ltd.Cipla Ltd.Divi's Laboratories Ltd.Lupin Ltd.Dishman Carbogen Amcis Ltd.Sanofi India Ltd.Glaxosmithkline Pharmaceuticals Ltd.Indoco Remedies Ltd.PowerTorrent Power Ltd.Power Grid Corporation of India Ltd.NTPC Ltd.SJVN Ltd.RetailingAditya Birla Fashion and Retail Ltd.ServicesQuess Corp Ltd.Thomas Cook (India) Ltd.SoftwareInfosys Ltd.Oracle Financial Services Software Ltd.Tata Consultancy Services Ltd.Larsen & Toubro Infotech Ltd.Cyient Ltd.HCL Technologies Ltd.Hexaware Technologies Ltd.Nucleus Software Exports Ltd.Persistent Systems Ltd.Telecom - ServicesBharti Airtel Ltd.Short Term Debt & Net Current Assets

Market Capitalisation Wise Exposure


Capital appreciation over long termInvestment in equity and equity related securities



QUANTITATIVE DATA

PORTFOLIO DETAILS




Portfolio Allocation (%)

December 2019


NANANA

RISK RATIO


% toNAV0.790.660.550.510.460.200.16

0.47

0.940.220.11

0.910.380.31

0.67

1.94

0.24

5.620.86

0.700.670.610.610.600.530.440.430.27

0.980.740.600.31

0.79

0.720.50

3.981.421.160.920.800.740.650.580.42

0.633.93

% to NAVDerivatives

Large Cap64.45%

Mid Cap19.47%

Small Cap16.07%

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

0.24%0.47%0.63%0.67%0.67%0.79%0.91%1.22%1.26%1.60%1.94%1.97%2.26%2.63%2.92%3.11%3.14%3.33%

3.93%4.64%4.87%

6.48%6.53%

10.64%12.85%

20.28%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%Pesticides

Healthcare ServicesTelecom - Services

Media & EntertainmentChemicals

RetailingCommercial Services

ServicesIndustrial Capital Goods

Industrial ProductsNon - Ferrous Metals

Ferrous MetalsConstruction

PowerConsumer Durables

AutoConstruction Project

CementCash and Cash Equivalent*

Auto AncillariesPharmaceuticals

Petroleum ProductsConsumer Non Durables

SoftwareFinance

Banks




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

164.05164.0510.57%16.95%82

NAV as on January 3, 2020


10.058110.0581

Growth:Dividend:

Direct Plan(in Rs.)

10.060410.0604

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

32.18

1.01

0.33

1.48

0.84

0.670.48

0.24

1.430.57

0.57

0.69

0.73

Equity & Equity Related TotalAutoMahindra & Mahindra Ltd.V.S.T Tillers Tractors Ltd.Escorts Ltd.Auto AncillariesJtekt India Ltd.Exide Industries Ltd.Subros Ltd.Suprajit Engineering Ltd.WABCO India Ltd.BanksKotak Mahindra Bank Ltd.The Karnataka Bank Ltd.Indian BankCity Union Bank Ltd.DCB Bank Ltd.State Bank of IndiaCementUltratech Cement Ltd.Shree Cement Ltd.JK Lakshmi Cement Ltd.ACC Ltd.Grasim Industries Ltd.ChemicalsSolar Industries India Ltd.BASF India Ltd.Atul Ltd.ConstructionSobha Ltd.Mahindra Lifespace Developers Ltd.Ashiana Housing Ltd.KNR Constructions Ltd.Godrej Properties Ltd.Construction ProjectAshoka Buildcon Ltd.Engineers India Ltd.Consumer DurablesV-Guard Industries Ltd.Crompton Greaves Consumer Electrical LtdBlue Star Ltd.Voltas Ltd.Consumer Non DurablesNestle India Ltd.ITC Ltd.Hindustan Unilever Ltd.Bajaj Consumer Care Ltd.Marico Ltd.DCM Shriram Ltd.United Spirits Ltd.Ferrous MetalsRatnamani Metals & Tubes Ltd.FinanceSundaram Finance Ltd.Cholamandalam Investment & Fin Co Ltd.ICRA Ltd.Can Fin Homes Ltd.HDFC Life Insurance Co. LtdSBI Life Insurance Company Ltd.ICICI Prudential Life Insrnce Co. Ltd.Geojit Financial Services Ltd.Mahindra & Mahindra Financial Serv Ltd.

34.16

0.990.500.24

0.590.160.090.080.03

0.970.750.700.500.49

0.620.500.100.050.01

0.500.250.10

0.480.380.200.070.04

0.510.24

0.670.480.03

1.961.761.360.250.160.140.05

0.34

0.890.750.740.670.500.500.480.06


GasGujarat Gas Ltd.Aegis Logistics Ltd.GAIL (India) Ltd.Healthcare ServicesFortis Healthcare Ltd.Industrial Capital GoodsBharat Electronics Ltd.Triveni Turbine Ltd.Bharat Heavy Electricals Ltd.Industrial ProductsCummins India Ltd.Bharat Forge Ltd.Supreme Industries Ltd.Swaraj Engines Ltd.SKF India Ltd.MM Forgings Ltd.Media & EntertainmentJagran Prakashan Ltd.Sun TV Network Ltd.Minerals/MiningCoal India Ltd.Non - Ferrous MetalsHindustan Zinc Ltd.Petroleum ProductsCastrol India Ltd.Hindustan Petroleum Corporation Ltd.PharmaceuticalsLupin Ltd.Alembic Pharmaceuticals Ltd.Natco Pharma Ltd.PowerPower Grid Corporation of India Ltd.NTPC Ltd.ServicesQuess Corp Ltd.Thomas Cook (India) Ltd.SoftwareOracle Financial Services Software Ltd.Hexaware Technologies Ltd.Cyient Ltd.Persistent Systems Ltd.Nucleus Software Exports Ltd.Textiles - CottonVardhman Textiles Ltd.Nifty 50 Index Futures

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




Portfolio Allocation (%) Portfolio Classification by Rating Class (%)

December 2019


% toNAV

0.250.25

0.25

0.270.03

0.960.720.510.290.020.01

0.24

0.51

0.97

0.75

1.450.730.57

0.19

0.250.12

1.000.490.490.300.23

0.39

% to NAVDerivatives

Name of the Instrument Market ValueRs. Lakhs

Ratings % toNAV

0.99

0.70

0.50

0.49

0.27

0.71

0.791.49

17.19

Debt InstrumentsFixed DepositsICICI Bank Ltd.Axis Bank Ltd.Non Covertible DebenturesSIDBINational Bank for Agri & Rural DevelopExport-Import Bank of IndiaShort Term Debt & Net Current Assets

1000.001000.00

1015.751004.29

531.41

CARE AAACRISIL AAACRISIL AAA

6.106.10

6.196.123.245.93


0.25%0.34%0.37%0.39%0.73%0.75%0.78%0.85%0.97%1.16%1.28%1.42%1.46%1.49%1.50%

2.47%2.50%2.51%2.74%2.75%

3.27%4.90%

5.31%5.93%

8.95%12.19%

15.55%17.19%

0.00% 5.00% 10.00% 15.00% 20.00%Healthcare Services

Ferrous MetalsServices

Textiles - CottonMedia & Entertainment

Construction ProjectMinerals/Mining

ChemicalsNon - Ferrous Metals

ConstructionAuto Ancillaries

Consumer DurablesPetroleum Products

GasIndustrial Capital Goods

PowerSoftware

Industrial ProductsAuto

PharmaceuticalsCement

BanksFinance

Cash and Cash Equivalent*Consumer Non Durables

Fixed DepositsNon Covertible Debentures

Nifty 50 Index Futures

:::::

AAA/A1+ equivalent15.55%

Cash &cash equivalent5.93%

Equity66.33%

Fixed Deposits12.19%




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): 30.5438.84



10.150010.1500

Growth:Dividend:

Direct Plan(in Rs.)

10.173910.1739

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

-67.55

-5.83-4.38

-9.55-4.26-1.09

-0.92

-2.25

-3.94-0.71

-8.76-2.46-2.32

Equity & Equity Related TotalAutoMaruti Suzuki India Ltd.Mahindra & Mahindra Ltd.BanksAxis Bank Ltd.The Federal Bank Ltd.Bank of BarodaCementGrasim Industries Ltd.Construction ProjectLarsen & Toubro Ltd.Consumer Non DurablesUnited Spirits Ltd.Asian Paints Ltd.FinanceHousing Development Finance Corp Ltd.Manappuram Finance Ltd.Bajaj Finserv Ltd.

67.09

5.794.35

9.484.231.08

0.91

2.23

3.930.70

8.692.442.31


Non - Ferrous MetalsVedanta Ltd.PesticidesUPL Ltd.Petroleum ProductsReliance Industries Ltd.PowerTata Power Company Ltd.TradingAdani Enterprises Ltd.TransportationAdani Ports & Special Economic Zone Ltd.Short 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




December 2019


NANANA

RISK RATIO


% toNAV

0.52

3.27

8.43

0.83

5.19

2.7032.91

% to NAVDerivatives

-0.53

-3.30

-8.50

-0.84

-5.21

-2.71

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.

December 2019

DECEMBER 2019 11

Top Ten Holdings

PORTFOLIO

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

INVESTMENT OBJECTIVE

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): 12.7823.71


THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING

AAUM (in Rs. Cr):

Average Maturity:Macaulay Duration:Yield to Maturity:

0.98 Day0.0026 Day4.76%


Name of the Instrument Ratings % toNAV

98.28

1.72

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)

1256.00

21.98

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

CATEGORY OF SCHEME: Overnight Fund

QUANTITATIVE DATA


1008.91881001.00001000.24801001.51181001.48951008.9760

GrowthDaily DividendWeekly DividendFortnightly DividendMonthly DividendAnnual Dividend

Direct Plan(in Rs.)

1009.10831001.00001001.00001001.58341001.58011001.7820

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 December 31, 2019 unless otherwise specified.

^

Inception Date(Date of Allotment):

Triparty Repo98.28%

Net Current Assets1.72%

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

December 2019

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

DECEMBER 2019 12

FUND FEATURES

Top Ten Holdings

PORTFOLIO

ITI Liquid Fund(An open-ended liquid Scheme)

INVESTMENT OBJECTIVE

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): 36.8433.14


THIS PRODUCT IS SUITABLEFOR INVESTORS WHO ARE SEEKING

AAUM (in Rs. Cr):

Average Maturity:Macaulay Duration:Yield to Maturity:

0.99 Day0.0026 Day4.79%


Name of the Instrument Ratings % toNAV

98.69

1.31

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)

3636.00

48.27

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

CATEGORY OF SCHEME: Liquid Fund

QUANTITATIVE DATA


1036.79321001.00001001.00001002.19781001.47601037.5899

GrowthDaily DividendWeekly DividendFortnightly DividendMonthly DividendAnnual Dividend

Direct Plan(in Rs.)

1037.57941001.32331001.00001001.49571001.48991037.5864

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 December 31, 2019 unless otherwise specified.

^

Inception Date(Date of Allotment):

Cash &Cash Equivalent100.00%

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

Triparty Repo98.69%

Net Current Assets1.31%

Glossary

How to read factsheet

Average MaturityWeighted 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.


Portfolio Turnover RatioPortfolio 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 ErrorTracking 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 ReturnThe theoretical rate of return of an investment with safest (zero risk) investment in a country.

Growth and Cumulative optionGrowth and Cumulative words are used alternatively.

Fund ManagerAn 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 SubscriptionThis is the minimum investment amount for a new investor in a mutual fund scheme.

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

SIPSIP 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.

NAVThe 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.

BenchmarkA 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 LoadA 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 LoadExit 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 DurationModified duration is the price sensitivity and the percentage change in price for a unit change in yield.

Standard DeviationStandard 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 RatioThe 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.

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

HoldingsThe 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 SchemeThe 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 ProfileMutual 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.

NFO Opens : January 27, 2020NFO Closes : February 10, 2020

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

169-20

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