Investment Objective
ITI Small Cap Fund aims to generate capital appreciation by primarily investing in equity and equity related instruments of small cap companies.
Investment Strategy
- The fund aims to allocate at least 80% of its portfolio in ‘core’ stocks and the remaining in tactical bets.
- The stock selection of the fund is based on the valuations, business cycles and earnings growth prospects of the companies.
- It follows a bottom-up approach for stock picking, focusing on factors like growth drivers, assessment of business quality, cost drivers, promoter’s pedigree and governance filters.
- The fund factors in macro-economic orientation, emerging themes and expected tailwinds for its top-down sector allocation.
- It maintains a sector agnostic and benchmark agnostic investment approach.
- It follows the Growth at Reasonable Price (GARP) approach to identify growth stocks at reasonable valuations.
- The fund also maintains a well-diversified portfolio consisting of 50 to 100 stocks to reduce the concentration risk.
- It factors in the intrinsic value and margin of safety while evaluating stocks.
Who Should Invest
- Younger and savvy investors having a long term investment horizon of more than 5 years.
- Those seeking alpha creation through investments in small cap companies.
- Those having a higher risk appetite to tolerate high volatility associated with small cap companies.