Witnessing J-curve growth, ITI Mutual Fund eyes Rs 1 trillion AUM in 5 yrs

ITI Mutual Fund said that it is at an "inflection point of 'J' curve growth," aiming to reach an AUM of Rs 1 trillion within the next five years, driven by India's robust macroeconomic fundamentals.

A J-curve illustrates a trend that initially dips 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 remains in a golden spot on the world map, with expected growth outpacing most global economies, presenting strong opportunities for the mutual fund industry," Rajesh Bhatia, Chief Investment Officer of ITI Mutual Fund told PTI.

Bhatia said, "Given India's growth story, expanding at 7-8 per cent annually, it's the fastest growing among countries of its size and the most predictable. Many international observers would bet on India as having the highest growth potential over the next 5-10 years."

"In this context, we are at an inflection point of 'J' curve growth, which positions us to scale dramatically. We aspire to reach Rs 1 trillion AUM in the next five years," Bhatia said.

He also dismissed concerns that fresh allegations from Hindenburg Research against the SEBI chairperson would impact the market.

Discussing the outlook, Bhatia mentioned that while large-cap valuations remain attractive, the mid-cap and small-cap segments are capturing the growth story best.

"The earnings trajectory in mid and small caps is much faster, which explains why they are performing so well despite current valuations being stretched. Many businesses in sectors like defence, capital goods, engineering, and electronic manufacturing are representative of significant growth opportunities in the mid and small cap space," Bhatia said.

When asked about potential market corrections, Bhatia didn't rule out a probability of market correction.

"Japan corrected over 20 per cent, the US corrected, and cryptocurrency saw sharp declines. Meanwhile, India only corrected by 4-5 per cent, which is negligible given the market's rise. This is characteristic of a strong bull market," he stated.

ITI MF is soon launching a Large & Mid-cap fund. The firm intends to continue to expand its retail investor base.