NFO Alert: ITI Mutual Fund Launches Business Cycle Fund

ITI Mutual Fund has opened the new fund offer (NFO) for the ITI Business Cycle Fund from February 13, 2026, to February 27, 2026.  

The scheme is an open-ended thematic equity fund benchmarked against the NIFTY 500 Total Return Index (TRI). It falls under the business cycle category, where investments are linked to different phases of the economy. 

The minimum investment amount is ₹5,000. Investors can choose between the Growth and IDCW options. The scheme does not have a lock-in period. An exit load of 0.5% will apply if units are redeemed within 3 months from allotment. 

Investment Approach 

The scheme seeks to generate long-term capital appreciation by investing mainly in equity and equity-related securities. Its strategy is based on allocating funds across sectors and stocks depending on the stage of the business cycle. 

This means the portfolio may shift between sectors such as industrials, financials, consumption, or commodities as economic conditions change.  

The allocation will be adjusted based on factors such as growth trends, demand cycles, and broader macroeconomic indicators. 

Fund Management and Risk Level 

The fund will be managed by Alok Ranjan and Nilay Dalal. As a thematic equity scheme, it carries a ‘Very High’ risk rating on the riskometer. Sector exposure may vary over time, depending on the cycle-based allocation strategy. 

Category Positioning 

The ITI Business Cycle Fund is positioned within the thematic business cycle segment of equity mutual funds. Being open-ended, the scheme will allow subscriptions and redemptions after the NFO period, subject to the applicable exit load. 

Read More: Kotak Alternate Secures ₹3,900 Crore from Domestic Investors for Private Credit Fund! 

Conclusion 

The scheme follows a sector allocation approach linked to economic cycles. Its returns will depend on sector performance across different phases of the business cycle. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.