ITI Mutual Fund targets Rs 1 trillion AUM in 5 years

BUSINESS: ITI Mutual Fund said it is “at an inflection point of J curve growth,” with a target to reach an AUM of Rs 1 trillion within the next five years, driven by India’s strong macroeconomic fundamentals. The J-curve depicts a trend that initially falls sharply before rising dramatically. As of July 2024, the company’s AUM grew nearly 90 per cent year-on-year to Rs 8,763 crore. “India continues to occupy a golden spot on the world map, with expected growth ahead of most global economies, which presents strong opportunities for the mutual fund industry,” Rajesh Bhatia, chief investment officer at ITI Mutual Fund, told PTI.

“Given India’s growth story, which is growing at 7-8 per cent annually, it is the fastest growing and most predictable among countries of its size. Many international observers would bet on India having the highest growth potential over the next 5-10 years,” Bhatia said. “In this context, we are at an inflection point of ‘J’ curve growth, which positions us to grow dramatically. We aspire to reach an AUM of Rs 1 trillion in the next five years,” Bhatia said. He also dismissed concerns that Hindenburg Research’s fresh allegations against the Sebi chairman would impact the market. Discussing the outlook, Bhatia mentioned that while large-cap valuations remain attractive, the mid-cap and small-cap segments are holding up the growth story best. “The earnings trajectory in mid and small caps is very bullish, which explains why they are doing so well despite the current valuations. Many businesses in sectors such as defence, capital goods, engineering and electronic manufacturing represent significant growth opportunities in the mid and small cap space,” Bhatia said. When asked about potential market corrections, Bhatia did not rule out the possibility of a market correction. “Japan fell by more than 20 per cent, the US also declined and cryptocurrencies also saw a sharp decline. Meanwhile, India fell by only 4-5 per cent, which is negligible considering the market momentum. This is characteristic of a strong bull market,” he said. ITI MF is soon going to launch a large and mid-cap fund. The firm intends to continue expanding its retail investor base.