ITI Mutual Fund is an Asset Management Company (AMC) that offers various mutual fund schemes to investors in India. The “ITI” in it stands for Investment Trust of India. The Fund aims to offer quality investment solutions to investors in India which is laced with superior risk-adjusted returns. Their funds cover a range of asset classes such as equity, debt, and hybrid funds, catering to different risk profiles and investment goals. These practices used by mutual fund AMCs build investors’ trust and help them to pursue their financial goals with a lot of confidence and fresh thinking.
Let us learn about those five most primary things to keep in mind before investing in ITI funds.
Investment Plan, Objective and Strategy
Making investments in mutual funds is an important financial decision and therefore, one should be thorough about their financial goals, investment plan, and strategy. ITI Mutual Funds offers a range of schemes covering different investment strategies, such as equity, debt, and hybrid funds. You must ensure that the fund’s investment strategy matches your goals and does not cause you a problem in managing personal expenses.
Risk Management
Any kind of investment brings with it a risk. While investing in ITI funds, it is important to evaluate the risk management practices employed by the AMC. In order to check the risks involved with your investment, it is important for you to understand the fund’s risk profile. For that, you may check the volatility, concentration risk, credit risk, and liquidity risk associated with the investment.
Time Factor
Time is an important factor to consider when you’re planning to invest in ITI funds. People often wonder if they should invest when the market is peaking or when it is sinking. To be honest, you should time your investment when the market is highest in both these factors. Moreover, if you remain disciplined and keep investing a fixed amount in mutual funds then you’re bound to have a decent growth.
Fund Manager Expertise
In the description itself, the ITI funds company mentions the expertise of its fund managers. It is now your work to assess the experience, expertise, and track record of the fund manager(s) managing the fund schemes you’re interested in. There are many things to know and inspect like their investment approach, decision-making process, and tenure with the fund house.
Asset Allocation, Diversification and Fluidity
Another important factor to keep in mind before investing is asset allocation and diversification. It is your duty to ensure that your investments are diversified across various asset classes, sectors, and market caps (for equity funds) to reduce concentration risk. Apart from this diversification, make sure that the fund’s liquidity aligns with your fund size, investment horizon, and redemption needs.
Conclusion
Investing experience in mutual funds gets better with the more background research you do and the more advice you get, which is what we did in today’s blog. There are multiple things to know before choosing ITI funds, 5 of which we got to know today. By considering these factors in your evaluation process, you can be well-informed before choosing ITI Funds.
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