August 27, 2026
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SahiFund.com Expert Speak is pleased to present an exclusive interaction with Mr. Jatinder Pal Singh, CEO of ITI Mutual Fund, against the backdrop of the ongoing ITI Multi Asset Allocation Fund NFO.
In an investment environment marked by changing interest-rate expectations, volatile equity markets and growing investor interest in precious metals, asset allocation has assumed greater importance. Instead of depending on a single asset class, multi-asset strategies seek to diversify investments across different avenues with the objective of balancing growth opportunities and portfolio risk.
In this edition of Expert Speak, we interact with Mr. Jatinder Pal Singh to understand the thinking behind the new fund, its asset-allocation strategy, the role of gold and silver alongside equity and debt, risk-management considerations and the type of investors for whom such a multi-asset approach may be suitable.
– By Jainee Shah, Chartered Accountant, SEBI Registered Research Analyst, Director, Chanakya Mediahouse Pvt. Ltd.
- The benchmark suggests a strategic allocation of 50% to equities, 30% to debt and 20% to gold and silver. Will the fund largely maintain this allocation, or will the fund managers dynamically shift between asset classes based on valuations and market conditions?
The benchmark provides a reference point, but our investment approach is not about mechanically replicating the benchmark allocation.
This is where the first part of our 3D methodology — Direction — comes into play. We will assess the relative attractiveness of different asset classes based on valuations, interest-rate and inflation outlook, market cycles, liquidity and the broader macroeconomic environment.
Within the permissible limits of the scheme, this gives the investment team the flexibility to take tactical allocation calls when opportunities or risks emerge.
The objective is not to continuously predict which asset class will be the next winner. Our aim is to construct an appropriate asset mix for the prevailing environment and then rebalance it in a disciplined manner as conditions evolve.
- Equity markets are trading near elevated levels, while gold and silver have also appreciated significantly. How will the fund deploy its NFO proceeds without exposing investors to the risk of entering multiple asset classes at expensive valuations?
A rise in prices does not necessarily mean that every opportunity within an asset class has become unattractive. We believe the more important question is whether the risk-reward remains favourable at the point of investment.
That is where both Direction and Discipline become important. At the asset-allocation level, we will evaluate relative valuations and opportunities across equity, fixed income, gold and silver. Within each asset class, we then apply a defined selection framework rather than deploying capital indiscriminately.
For equities, our GEMS framework evaluates Growth, Earnings & Cash Quality, Management Quality and Valuations which are sensible. So even in an elevated market, valuation remains an important part of security selection.
Similarly, fixed income is evaluated through our DCC framework — Duration, Credit and Curve — while commodity exposure considers the macro environment, liquidity and market conditions, and relative opportunities.
The multi asset structure provides exposure to multiple asset classes rather than relying on a single asset class for portfolio construction. We aim to allocate Capital based on where we see relatively better risk-reward opportunities.
- Several multi-asset allocation funds are already available with established performance records. What distinctive investment strategy or risk-management framework will differentiate the ITI Multi Asset Allocation Fund?
Our differentiation lies primarily in the investment process. We follow our 3D methodology — Direction, Discipline and Diversification.
Direction determines the asset mix based on the market environment and relative opportunities. Discipline determines what we own within those asset classes. Diversification brings these individual decisions together into a portfolio across equity, fixed income, gold and silver, which aims to navigate changing market cycles.
We may also take tactical calls where appropriate, while maintaining liquidity buffers as part of our risk-management approach.
So, our differentiation is not simply that we invest across four asset classes; it is the disciplined framework we use to decide where to allocate and what to own within each asset class.
- What factors will determine the allocation between gold and silver, and how do you assess the different roles of these two precious metals — particularly silver’s higher volatility and industrial demand — in the overall portfolio?
We do not look at gold and silver as identical exposures simply because both are precious metals. They can play different roles in a portfolio.
Gold tends to have a stronger monetary and diversification characteristic and can respond to factors such as interest rates, inflation expectations, currency movements and geopolitical uncertainty.
Silver has some of those characteristics, but it also has a significant industrial-demand component. As a result, its behaviour can be more cyclical and its volatility can be higher.
Our commodity framework therefore evaluates three broad areas — the macro environment, liquidity & market conditions, and relative opportunities. This includes looking at factors such as interest rates & inflation, economic conditions, liquidity, market dynamics, relative valuations and event-driven opportunities.
The allocation between gold and silver can therefore evolve depending upon their respective risk-reward characteristics. The objective is not to maximise exposure to whichever metal has recently performed better; it is to determine what role each can play within the overall diversified portfolio.
- During a scenario in which equities, bonds and precious metals decline simultaneously, what specific measures will the fund use to control downside risk, and what realistic return and volatility expectations should investors have?
Diversification helps manage portfolio risk, but it cannot eliminate market risk. There can certainly be periods when correlations between asset classes increase and equities, fixed income and commodities face pressure simultaneously.
Our first line of risk management is therefore portfolio construction itself. We also have the ability to take tactical calls where appropriate and maintain liquidity buffers for risk mitigation.
On return expectations, we would avoid putting a specific number on what investors should expect. Market returns cannot be predicted with that degree of certainty.
Instead, investors should look at the fund as a long-term asset-allocation solution that seeks to participate across multiple asset classes while managing portfolio risk through diversification, disciplined security selection and active asset allocation.
The aim is to navigate volatility in a disciplined manner without depending on a single asset class to deliver the portfolio outcome.