ITI Value Fund launched by ITI mutual fund


ITI Mutual Fund is coming out with a NFO in the form of ITI Value Fund.

ITI Value Fund as the name suggests, would be a value fund.

The fund would be open for subscription from May 25, 2021 to June 08, 2021.

ITI mutual fund


NFO details for ITI Value Fund

Scheme Opens


Scheme Closes


Fund Manager

Mr. Pradeep Gokhale

Mr. Rohan Korde


Nifty 500 Value 50 (TRI)

Minimum Investment


Fund Category


Exit Load

1% if redeemed within a year


ITI Value Fund would be an open - ended value fund that would be predominantly following value investing in equity and equity related instruments.


ITI Value Fund Investment Objectives

The investment objective of the fund is to attain long term growth while investing applying predominantly a value style in equity and equity related instruments.

There is no guarantee that the investment objectives of the scheme would be achieved.


ITI Value Fund Allocation

The asset allocation for the fund would be something like this

Asset Class

Minimum %

Maximum %

Equity and Equity Related instruments



Debt and Money market instruments



Units issues by REITS and InvITs




The above figures are only indicative and not fixed, the fund managers have the liberty to move across the asset classes depending upon prevailing market conditions as long as they remain within the mandate permitted.

The fund can also invest in REITs and InvITs if so desired.



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ITI Value Fund Options

ITI Value mutual fund provides investors with the following two options

Growth: This option is most suited for investors who are not seeking dividends or who are not dependent on mutual fund dividends as a source of monthly income and would rather see their capital appreciate.

Income Distribution cum capital withdrawal : This option is most suited for investors who are seeking dividends or who are dependent on mutual fund dividends as a source of monthly income and are not looking for capital appreciation.

In case you do not opt for a particular option between growth and income distribution cum capital withdrawal option then the default option would be growth.



What is a Value fund?

A value fund is one in which more allocation is made towards stocks that are trading lower to their intrinsic value.

In a value mutual fund, valuation is more important than price.

There is no restriction with any caps so value mutual funds can move anywhere as much as they like.

It invests in companies it feels are presently very attractively priced but with strong fundamentals.

Unlike other equity mutual funds, a value fund does not have a buy and hold strategy but rather a buy and sell strategy.

 Additional reading: Click Here to read about the various Types of Mutual Funds 

How does a value fund work?

A value fund is on the lookout for companies:

That are going through a temporary difficult period and thereby trading at prices way below their intrinsic value.

That are going through management changes.

That are emerging and can be seen as challenging the status quo in the near future and trading at attractive valuations.

That are trading at the bottom due to the cyclical nature of their business.

        The one common requisite for all companies though is that they need to be fundamentally strong.


Features of ITI Value Fund  

Ideal investment horizon of 3-5 years

Value investing strategy will be applied across all caps.

A stock level limit will be applied to all caps as follows:

  1. Large caps – 7%
  2. Mid caps – 5%
  3. Small caps – 3%

At the time of purchase


Additional reading: Click Here to read our complete review of ITI Multi Cap Fund

How will ITI value fund function?

ITI value fund will look out for companies that:

Have a strong management in place.

Have already demonstrated strong earnings.

Have potential to continue strong earnings in the future as well.

Have simple businesses that are easy to understand.

Have little to no debt.



       A contra or a value fund should never be your first scheme when you start investing in mutual funds

      Most investors look for value and contra funds more out of fear of missing out on a mutual fund scheme rather than truly being aware of whether these funds are adding anything new to their existing portfolio.

      Diversification is more about understanding the functioning and purpose of a scheme rather than the number of schemes you hold.

      Do not invest in such schemes only because you can, invest cause you know how they work and whether they would work for your goals.


For portfolio enquiriesemail us with your doubts at

Disclaimer : While due precaution has been undertaken in the preparation of this article, The Mutual Fund Guide or any of its authors will not be held liable for any investments based on the above article. The above article should not be considered financial advice and has been published only for your perusal. Due credit has been given in case wherever required, in case you feel any part violates any rights then do get in touch with us and we shall get it duly removed.  
Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing

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