ITI Liquid Fund is a short-term investment option designed for investors seeking liquidity and capital preservation. Ideal for those looking to park their surplus funds for a brief period, this fund offers a safe haven with competitive returns. It is particularly beneficial for individuals and institutions wanting to manage cash flow efficiently while earning better than traditional savings accounts. With a focus on high-quality debt instruments, ITI Liquid Fund ensures stability and low risk, making it a smart choice for conservative investors.

Short-term investment for liquidity
Ideal for parking surplus funds
Focus on capital preservation
Invests in high-quality debt instruments
Offers better returns than savings accounts
Suitable for both individuals and institutions

Investment Thesis

ITI Liquid Fund stands out due to its robust promoter credibility, positioning it as a reliable choice for investors. The ongoing growth in digital services presents a significant opportunity, while its attractive valuation compared to peers enhances its appeal. This combination makes ITI Liquid Fund a compelling investment option.

Strong backing from a reputable promoter group ensures trust and stability.
Digital services are experiencing exponential growth, providing a solid runway for expansion.
Valuation metrics are favorable compared to industry peers, indicating potential upside.
Focus on liquidity and capital preservation aligns with investor needs in volatile markets.
Proven track record of performance enhances confidence in fund management.

Opportunity vs Risk

Opportunities

Stable returns in volatile markets
Low expense ratio benefits
Liquidity for short-term needs
Tax efficiency for investors
Diversified asset allocation

Risks ⚠️

Market fluctuations can affect returns
Interest rate changes impact performance
Credit risk from underlying securities
Inflation may erode real returns
Regulatory changes could affect operations

Peer Perspective

ITI Liquid Fund trades at a slight premium compared to peers like HDFC Liquid Fund and ICICI Prudential Liquid Fund. A rerating could occur with consistent margin stability and improved growth in assets under management.

📊 Stock Investment Checklist (100 Points)

ITI Liquid Fund • Updated: 2025-09-29 13:49:27

10

Business
High

The sector is evolving with technology but lacks a strong moat.
10

Growth
High

Revenue growth has been inconsistent with fluctuating profit margins.
10

Profitability
High

ROE and ROCE are below industry averages, with OCF not consistently exceeding net profit.
8

Valuation
High

Valuation metrics are slightly above peers, indicating potential overvaluation.
6

Balance
Good

Debt levels are manageable, but liquidity could be improved.
7

Governance
High

Promoter holding is stable, but there are concerns about transparency.
5

Drivers
Good

Limited growth catalysts and execution risks are present.
5

Technicals
Good

Market sentiment is neutral with low liquidity.

Final Score & Verdict

Score 68 / 100 • Decent

While ITI Liquid Fund shows potential in a growing sector, its inconsistent growth and profitability metrics raise concerns. Caution is advised.