ITI Large and Mid Cap Fund

The ITI Large and Mid Cap Fund has delivered a 1-year SIP XIRR of 3.41%, which is significantly below the category average of 16.54% for the same period. Over the same horizon, the fund's CAGR of 6.65% has outperformed the NIFTY 50's -2.9%, indicating positive relative performance against the benchmark despite weak absolute returns. However, the fund's returns are notably lower than its peers, suggesting a lag in performance within its category.

The fund exhibits a maximum drawdown of -0.20% with a recovery period of 521 days, indicating a relatively shallow but prolonged drawdown. The Calmar ratio of 0.1061 for 1 year suggests low risk-adjusted returns relative to the drawdown experienced. With a beta of 1.11, the fund is more volatile than the benchmark, and its downside capture of 98.88% (1Y) indicates it captures nearly all of the market's downside, while upside capture of 112.46% shows it participates more in upswings, but the overall risk-adjusted performance remains weak.

The fund holds a diversified portfolio of 95 stocks, with the top 10 holdings accounting for approximately 19.75% of NAV, indicating a well-diversified approach. The largest sector exposure is Banks at 17.6%, followed by Finance (8.7%) and Pharmaceuticals (7.0%), showing a tilt towards financials and healthcare. Top holdings include Bharti Hexacom, ICICI Bank, and IndusInd Bank, but the low concentration suggests the fund is not heavily reliant on any single stock.

The fund's 1-year XIRR of 3.41% is drastically lower than the category average of 16.54%, placing it in the bottom quartile of its peer group. Over longer periods, the fund's CAGR has been positive but modest (0.8% over 3 years), while the category average SIP XIRR for 3 years is 17.73%, indicating persistent underperformance. The fund has also delivered negative calendar year returns in 2024 (-2.7%) and 2025 (-0.15%), with a positive 4.82% in 2026, showing inconsistent performance relative to peers.

This fund may be suitable for investors with a high risk tolerance who are willing to accept significant underperformance relative to category peers in exchange for potential long-term alpha over the benchmark. Given the low returns and high drawdown recovery time, a long-term investment horizon of at least 5-7 years is recommended to potentially ride out volatility. However, investors seeking consistent returns in line with the large & mid cap category should consider alternative options with better track records.

• The fund has consistently outperformed the NIFTY 50 benchmark across all time horizons, with positive alpha ranging from 1.32% (15Y) to 10.58% (1Y).
• The expense ratio of 0.44% is low, which is cost-efficient for investors.
• The portfolio is well-diversified with 95 holdings and no single stock exceeding 2.73% of NAV, reducing stock-specific risk.

• The fund's 1-year SIP XIRR of 3.41% is significantly below the category average of 16.54%, indicating severe underperformance relative to peers.
• The maximum drawdown recovery period of 521 days is long, and the fund has experienced negative calendar year returns in two of the last three years, suggesting poor timing and recovery.