Upcoming NFO: ITI Mutual Fund Filed Draft with SEBI for Business Cycle Fund

ITI Mutual Fund has announced the launch of the ITI Business Cycle Fund, an open-ended equity scheme classified under the thematic fund category. The scheme will be offered through a new fund offer (NFO) at ₹10 per unit.  

Post the NFO, units will be available for purchase and redemption on all business days at NAV-linked prices. The scheme information document is dated December 26, 2025. 

Investment Focus 

The fund plans to invest in equities by adjusting sector exposure based on different phases of the economic cycle.  

These phases include periods of expansion, peak growth, slowdown and contraction. Portfolio decisions will be guided by macroeconomic indicators, sector-level trends and company-specific factors.  

The scheme follows an actively managed approach combining economic assessment with stock selection. 

Asset Allocation Structure 

Under normal conditions, the scheme will invest between 80% and 100% of its assets in equity and equity-related instruments of companies linked to business cycle activities or allied sectors.  

Up to 20% of the portfolio may be allocated to other equity instruments. Debt and money market instruments may account for up to 20% of assets, primarily for liquidity and risk management. Exposure to REITs and InvITs is capped at 10% of net assets. 

Benchmark and Management 

The performance of the scheme will be measured against the Nifty 500 Total Return Index, which represents a broad range of listed Indian companies across market capitalisations. The fund will follow a co-fund manager structure.  

Domestic investments will be managed by Nilay Dalal and Alok Ranjan, while overseas investments, where permitted, will be overseen by Rajesh Bhatia. Any overseas exposure will remain within regulatory limits set by SEBI and RBI. 

NFO Details and Costs 

The NFO will remain open for at least three working days and no more than 15 days. The minimum application amount during the NFO and thereafter is ₹5,000, with additional investments of ₹1,000 and allowed in multiples of ₹1. The scheme does not levy an entry load.  

An exit load of 0.5% applies on redemptions made within three months from allotment, while redemptions after that period will not attract any exit load. Both Direct and Regular plans will be available, each offering Growth and IDCW options. 

Read More:  Upcoming NFO: Helios Mutual Fund Filed Draft for Arbitrage Fund! 

Conclusion 

The ITI Business Cycle Fund is a new scheme and does not have a performance history. It follows a sector-based equity allocation framework linked to economic cycles, with provisions for limited debt and overseas exposure as per regulatory norms. 

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.