Sudhir Valia-backed ITI group forays into mutual fund business

The fund house seeks to differentiate itself in the 41-player MF industry

The Sudhir Valia-backed ITI group on Monday launched its mutual fund (MF) business, marking its entry into the Rs 23-trillion MF industry.

Commenting on the promoters’ commitment to the MF business, George Heber Joseph, chief executive officer (CEO) of ITI MF, said that promoters are fully behind the MF foray with a long-term vision for the business.

Valia and Sun Pharma’s links had earlier come under scrutiny following a Macquaire note alleging corporate governance lapses in the pharma major and reports of whistle-blower complaints against the drugmaker. The launch of ITI MF comes at a time when the MF industry has gone through a slew of regulatory changes. ITI MF sees the changes as an opportunity.

“Scrapping of upfront commission and slab-wise commissions would help in levelling the playing field for small and new fund houses such as ours,” Joseph said. The fund house’s strategy would include leveraging the ITI group’s three million customer base, which are well-aware of the ITI brand. “We would direct these clients to distributors and advisers to understand our investment philosophy,” Joseph said.

The fund house seeks to differentiate itself in the 41-player MF industry by focusing on quality in both its equity and debt portfolios.

Commenting on the troubles faced by other fund houses in their debt exposures, Joseph said that problems come up when fund managers lose focus on the basics.