ITI Mutual Fund is
coming out with a NFO in the form of ITI Pharma & Healthcare Fund.
ITI Pharma &
Healthcare Fund as the name suggests would be a thematic fund investing in
pharmaceutical and companies involved with healthcare.
The fund would be open
for subscription from October 18, 2021 to November 01, 2021.
NFO details for ITI Pharma & Healthcare Fund
|
Scheme Opens |
18/10/2021 |
|
Scheme Closes |
01/11/2021 |
|
Fund Manager |
Mr. Pradeep Gokhale Mr. Rohan Korde |
|
Benchmark |
Nifty Healthcare TRI |
|
Minimum Investment |
5,000 |
|
Fund Category |
Thematic : Pharma
& Healthcare |
|
Exit Load |
Nil if redeemed or
switched after 12 months 1% if redeemed
within 12 months |
ITI Pharma and Healthcare fund would be a thematic fund investing in pharma and healthcare related industries.
This would be the
first ever thematic fund from the house of ITI mutual fund.
The fund house already
has several equity and debt offerings.
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ITI Pharma & Healthcare Fund Investment Objectives
The investment
objective of the fund is to generate capital appreciation by investing in
equity and equity related securities of companies engaged in pharma and
healthcare.
There is no guarantee
that the investment objectives of the scheme would be achieved.
ITI Pharma & Healthcare Fund Allocation
The asset allocation
for the fund would be something like this
|
Asset Class |
Minimum % |
Maximum % |
|
Equity and Equity
Related instruments of companies engaged in pharma & healthcare |
80 |
100 |
|
Equity & equity
related instruments of other companies |
0 |
20 |
|
Listed Preference
Shares |
0 |
10 |
|
Debt & Money
Market Instruments |
0 |
20 |
|
Units issued by
REITs & InvITs |
0 |
10 |
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.
Features of ITI Pharma and Healthcare Fund
ITI Pharma and Healthcare fund would be a
thematic fund investing in pharma and healthcare companies.
At any given time it would need to be 80%
invested in companies related to its theme.
It will be first thematic mutual fund
scheme from the house of ITI mutual fund.
It has no restriction with respect to caps
and can invest across all caps in varying numbers.
It can be seen as a less volatile fund .
For tax calculation purposes, it will be
considered an equity fund.
What is a thematic fund?
A Thematic Mutual Fund as the name
suggests follows a particular theme when investing.
A Thematic Mutual Fund can invest across
various sectors that fall within one particular theme.
It is far more diversified than a
Sectoral Mutual Fund since it is not restricted to any one particular sector.
With ITI Pharma and Healthcare fund, the
fund can invest not only in pharma companies but also has the option to choose
among companies involved in healthcare.
This could range anywhere from hospitals to
health insurance companies.
Additional reading: Click Here to read everything you ever wanted to know about a NFO mutual fund
Who can consider ITI Pharma and
Healthcare Fund?
Investors who currently do not have a
thematic fund and wish to invest in one.
Those that have a time horizon of 5 years
or more.
Investors seeking exposure to
pharmaceutical and the healthcare sector companies.
Taxation on ITI Pharma and Healthcare Fund
For the purpose of taxation, ITI Pharma and
Healthcare fund qualifies as an equity fund and the taxation charges applicable
on it are as follows:
LTCG
Long term capital gains tax better known as
LTCG is applied on any equity mutual fund when the gains from an equity mutual
fund which is held for more than a year is more than 1 lakh.
The LTCG rate is 10%.
Capital gains up to 1 lakh are exempt for
taxes.
There is no indexation benefit when
calculating LTCG.
STCG
Short term capital gains tax better known
as STCG is applied on gains from an equity mutual fund which is held for 12
months or less.
The STCG rate is 15%.
There is no ceiling benefit in STCG like
the 1 lakh ceiling in LTCG.
STCG is charged on from Re 1.
Who can invest in ITI Pharma and
Healtcare Fund?
The following persons
are eligible and may apply for Subscription to the Unit(s) of the Scheme:
Resident adult
individuals either singly or jointly (not exceeding three) or on an Anyone or
Survivor basis;
Minor (as the first
and the sole holder only) through a natural guardian (i.e. father or mother, as
the case may be) or a court appointed legal guardian. There shall not be any
joint holding with minor investments;
Non-Resident Indians
(NRIs) / Persons of Indian origin (PIOs) / Overseas Citizen of India (OCI)
residing abroad on repatriation basis or on non-repatriation basis;
Such other category of person(s) permitted to make investments and as may be specified by the AMC / Trustee from time to time.
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