ITI Asset Management Ltd. has joined India’s already crowded mutual fund space with the launch of two maiden schemes – ITI Liquid Fund and ITI Multicap Fund. In a press conference, the AMC also announced plans to set up offices in India’s 30 largest (T30) cities and build a distribution network there. “We expect to break even at an AUM of Rs10,000 crore which we should achieve around the 5th year of operations," said George Heber Joseph, CEO of ITI Asset Management.
The New Fund Offer (NFO) for ITI Multicap Fund will run from 25th April to 9th May and the NFO for ITI Liquid Fund will be open for 1 day on April 24th 2019. There will be a large cap orientation in the multicap fund with atleast 40% of the scheme’s assets to be invested in large caps at all times, Joseph said. The multicap scheme will be benchmarked to the Nifty 500 Total Returns Index (TRI). The AMC has also filed papers with SEBI for an arbitrage fund and an Equity Linked Savings Scheme (ELSS). The AMC will launch a limited number of schemes rather than going for schemes in every permitted category, according to Joseph.
George Heber Joseph, CEO of ITI Asset Management was formerly an equity fund manager at ICICI Prudential Asset Management Company Ltd. Pradeep Gokhale who was a fund manager at Tata Asset Management Company Ltd. has been designated as head of research at the new fund house. In a press conference the fund house announced that it would follow an investment policy based on safety, quality of business and liquidity or ‘SQL’.
Sudhir Valia, brother-in-law of Sun Pharma founder Dilip Sanghvi is closely associated with ITI Mutual Fund and is an associate director of trustee company, ITI Mutual Fund Trustee Pvt. Ltd. However certain controversies have been reported with regard to him. Other group companies in the ITI Group include Antique Stock Broking Ltd., a brokerage house and ITI Reinsurance Ltd. a reinsurer.