ITI Flexi Cap Fund NFO

A good investment opportunity for long term investors

ITI Mutual Fund has launched a New Fund Offer, ITI Flexi Cap Fund, an open-ended equity scheme which will have flexibility to invest across market capitalization segments i.e. large cap, midcap and small cap. ITI Flexi Cap Fund is the 9th scheme in ITI MF’s equity product offerings. The NFO opened for subscription on 27th January 2023 and will close on 10th February 2023.

What is Flexicap Fund?

As per SEBI’s mandate, flexicap funds can invest across market cap segments. There is no segment-wise limit for flexicap funds. In terms of risk profile, flexicap funds are somewhere between large cap funds and large & midcap funds.

Why invest in Flexicap Funds?

  • Historical data shows that winners rotate across different market cap segments – see the chart below. Flexicap fund managers can generate risk adjusted returns by rotating allocations to different market cap segments based on their outlook.

    Mutual Funds - Historical data shows that winners rotate across different market cap segmentsSource: National Stock Exchange, Advisorkhoj Research (as on 31st December 2022). Nifty 100 TRI represents large cap, Nifty Midcap 150 TRI represents midcap and Nifty Small Cap 250 TRI represents small cap stocks. Disclaimer: Past performance may or may be sustained in the future.

  • The small and midcap allocations provide growth potential to flexicap funds, while the large cap allocation provides stability.

  • Flexicap funds can be overweight / underweight in large, mid and small caps depending on relative attractiveness of these market cap segments.

  • Unlike other equity fund categories with mandated market cap limits e.g. large cap (minimum 80% in large cap), large and midcap (minimum 35% in midcap), multicap (minimum 50% in small and midcap), midcap (minimum 65% in midcap), small cap (minimum 65% in small cap), flexicap has no market cap limits. The fund manager can change market cap allocations as per prevailing market conditions.

  • The fund managers can use their talent to spot ideas across market cap segments without any market cap restrictions.

Salient Features of ITI Flexi Cap Fund

  • Diversification across market cap segments

  • No bias towards any market cap segment or industry sector

  • Top down sector approach supplemented by bottom up stock picks

  • The investment style of the fund is Growth at Reasonable Price (GARP)

Market cap selection approach – ITI Flexi Cap Fund

  • Relative Valuation among Large, Mid & Small Cap

  • Economic Indicator Evaluation

  • Liquidity Scenario

  • Global & Domestic Interest Rate Outlook

Sector Selection Approach – ITI Flexi Cap Fund

  • Emerging themes

  • Macroeconomic orientation

  • Emphasis on valuation to assess risk-reward & provide reasonable margin of safety

  • Holistic approach to valuations

  • Expected tailwinds

Stock Selection Approach – ITI Flexi Cap Fund

  • The financial strength of the companies, based upon select financial parameters

  • Reputation of the management and their track record

  • Good quality companies with above average growth prospects

  • Companies that are facing a stable or improved industry scenario either because of the nature of their businesses or superior strategies followed by their management

  • Valuation parameters & market liquidity of the securities

  • Companies which pursue a strategy to build strong brands for their products or services and those which are capable of building strong franchises

Why invest in ITI Flexi Cap Fund?

  • The fund can leverage opportunities in sectors and stocks appearing across market spectrum

  • The fund can make tactical allocation bets within market cap segments depending upon market scenarios

  • The fund will have flexibility to align with market risk reward perceptions

  • The fund plans to have robust investment controls and risk framework in place

Who should invest in ITI Flexi Cap Fund?

  • Investors who want capital appreciation over long investment horizon

  • Investors with high to very high risk appetites

  • Investors who have at least 5 years plus investment tenures

How can you invest in ITI Flexi Cap Fund?

You can invest in ITI Flexi Cap Fund either in lump sum or SIP depending on your financial situation and investment needs. To know more about the fund pls contact your Mutual Fund Distributor on 8778487989.

Invest Now in ITI Flexi Cap Fund


                            Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.