ITI Mutual Fund launches Ultra Short Duration Fund: NFO closes on May 3, 2021
ITI Mutual fund is launching a new fund offer for ITI Ultra Short Duration Fund. It is open for subscription between April 19 and May 3, 2021.
What are Ultra Short Duration Funds?
Ultra-short duration funds are fixed income mutual fund schemes that invest in debt and money market securities such that the Macaulay Duration of the scheme portfolio is 3 months to 6 months.
Macaulay duration is the weighted average time period by which an investor would get back the money invested in the bond from the interest payments on the bond as well as principal repayment.
Indicative Asset Allocation
| Instruments | Indicative allocations (% of net assets) | Risk Profile | |
| Maximum | Minimum | High/Medium/Low | |
| Debt and Money Market Instruments* | 100% | 0% | Low to Medium |
Benchmark
NIFTY Ultra Short Duration Debt Index
This index is one of the 13 indices that form the NIFTY Fixed Income Aggregate Index series and together measures the performance of the aggregate debt portfolio.
Fund Details
| Scheme Name | ITI Ultra Short Duration Fund |
| Type of scheme | An open ended ultra-short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 months to 6 months |
| NFO Dates | April 19 to May 3, 2021 |
| Fund Managers | Mr Vikrant Mehta |
| Minimum Amount for Application | Rs. 5,000/- and in multiples of Re. 1 |
| Minimum Additional Application Amount | Rs. 1,000/- and in multiples of Re. 1 |
| Minimum Redemption Amount | Rs. 1,000 and in multiples of Re. 1 after that or the account balance, whichever is lower.
There will be no minimum redemption criterion for unit-based redemption. |
| Load | Entry Load – Not Applicable
Exit Load – Nil |
| Plans |
|
| Options | Both Direct and Regular Plan(s) offer:
|
| Minimum SIP Amount | 12 instalments of Rs. 500 each and in multiples of Re.1 after that or 6 instalments of Rs. 1,000 each and in multiples of Re.1 after that |
Fund Managers
Vikrant Mehta:
Mr Mehta had joined ITI AMC in January 2021 and has an experience of more than 25 years in fixed income markets.
Other funds managed by him:
- Co-Fund Manager of ITI Liquid Fund
- Co-Fund Manager of ITI Overnight Fund
- Co-Fund Manager of ITI Arbitrage Fund
- Co-Fund Manager of ITI Banking & PSU Debt Fund
