'The essence of investing remains a human craft'

Model-driven vs human-led portfolios?

At ITI AMC, we expect around 25–30 per cent of our portfolio construction to be model-assisted over the next couple of years, while the majority will remain fund manager-led.

Data models and quantitative analytics enhance structure and discipline, particularly in portfolio screening and risk management. That said, the essence of investing remains a human craft, rooted in judgment, experience and market insight.

In India’s evolving markets, especially within small- and mid-cap segments, cyclical opportunities and emerging sectors, the human edge remains crucial to interpreting change, assessing management quality and capturing long-term compounding potential.

Early SIF launch: Aim and strategy?

Our upcoming strategic investment framework (SIF) NFO reflects ITI’s core philosophy of ‘safety, integrity and fundamentals.’ At ITI, we have been managing this framework as an AIF (alternative investment fund) for over seven years, gaining deep expertise and insights across different market cycles. This tested investment approach is now being introduced through the mutual fund route, allowing a wider range of investors to participate in a disciplined and research-driven strategy.

The SIF philosophy is built on two complementary pillars:

• Strategic core: Focused on high-quality, secular growth Indian franchises with sustainable earnings visibility.
• Tactical flexibility: Designed to identify opportunities arising from valuation gaps or cyclical recoveries.

SIF aims to deliver a balanced investment experience anchored in long-term growth while maintaining the flexibility to navigate market dynamics. Our objective is to provide a smoother participation across cycles with a disciplined, risk-managed approach, grounded in valuation comfort and quality conviction. In essence, SIF is about compounding intelligently and consistently through evolving market phases.

On low-friction investing and investor churn.

Digitalisation has made investing seamless, but it has also changed investor behaviour. We’ve observed that digitally acquired investors tend to have shorter holding periods and higher portfolio churn than traditional investors.

To address this, we’ve strengthened our goal-based engagement initiatives and embedded investor education across our digital ecosystem. Technology should drive informed investing, not impulsive trading. Our focus remains on building digital journeys that encourage long-term wealth creation and investor discipline.

This article was originally published on October 23, 2025.