ITUS Fundamental Value Fund Review: Performance, Fees & Should You Stay Invested?

Quick Summary

What Works	What Doesn’t
Positive alpha over the Nifty 50 TRI across every single disclosed period — 1, 2, 3, 5-year, and since inception	The fund’s own stated goal is 4-5% alpha over rolling 3+ year periods; actual 3-year alpha (+2.72%) and 5-year alpha (+0.41%) both fall short of that target
The most transparent PMS we’ve reviewed in this series — full top-10 holdings, sector weights, and overweight/underweight positioning are all disclosed	Outperformed in just 5 of 10 down-market quarters since inception, per the AMC’s own data — barely better than a coin flip
Manager Naveen Chandra Mohan has 20 years of experience and has run this exact strategy continuously since 2017, with founders’ entire net worth invested alongside clients	The 3-year trailing return (11.52%) actually trails the broader Flexi Cap mutual fund category average (13.15%) — a lower-cost peer group has recently done better
Zero exit load, SIP/STP available, and a direct-on boarding option that avoids distributor costs	Cap allocation moved substantially in about five months (mid-cap weight nearly doubled), and the fee quoted on paper isn’t consistent — worth clarifying directly with ITUS before committing

Verdict: ITUS Fundamental Value Fund is, by a distance, the most transparent and best-disclosed strategy we’ve reviewed in this series, and the manager’s pedigree is genuinely strong.

But right now, it isn’t clearing the bar it set for itself, its recent return has lagged plain vanilla flexi-cap mutual funds, and its down-market record is closer to a coin flip than a case for paying a PMS premium.

That combination is why we’re not recommending it at this time — not any single number in isolation.

The PMS Value Framework

Gross Alpha > Fee = Value Added | Gross Alpha ≈ Fee = Break-Even | Gross Alpha < Fee = Value Destroyed

Since inception, this strategy’s alpha over the Nifty 50 TRI (+3.87%, from 17.17% vs 13.30%) looks like it comfortably clears its fee — on the numbers alone, this fund sits in the value-added zone, and genuine credit is due for that.

But since-inception numbers reward whoever launched before a good run, and this fund launched in February 2017, ahead of a strong multi-year stretch.

The more useful test is the fund’s own: it targets 4-5% alpha over rolling 3+ year periods.

Its actual 3-year alpha is +2.72%, and its 5-year alpha is a thin +0.41% — both below the range it set for itself.

And when you compare its recent 3-year return not to a benchmark index but to what an ordinary, lower-cost flexi-cap mutual fund has delivered over the same stretch, the case for the premium fee gets thinner still.

Strong long-run numbers, a target it isn’t currently hitting, and a peer group that’s recently kept pace at a fraction of the cost — that’s the tension this review works through.

Table of Contents

1. Who Should Read This

2. Who This PMS May Still Suit

3. Who Should Likely Avoid This PMS

4. What Is ITUS Fundamental Value Fund?

5. Performance Review

6. The Fee Reality

7. The Zero-Based Thinking Test

8. Decision Factor Scorecard

9. The Core Portfolio Architecture Question

10. What a Genuinely Complementary PMS Looks Like

11. Exit Considerations

12. Key Takeaways

13. FAQ

14. Our Approach

1. Who Should Read This

• You’re currently invested in ITUS Fundamental Value Fund and want a clear-eyed read on how it’s actually tracking against its own target and its peer group
• You’re evaluating this PMS against your existing mutual fund portfolio and want to use its unusually detailed disclosure to actually check for overlap
• You want to understand the difference between “the fund beat its benchmark” and “the fund met its own stated goal”
• You’re weighing a ₹1 Crore commitment and want a full, honest picture before you sign anything
• You’re building a core-satellite portfolio and want an honest view of where a well-disclosed, long-tenured PMS like this one fits

2. Who This PMS May Still Suit

• Investors who value genuine portfolio transparency and want to verify holdings-level overlap with their existing investments before committing
• Investors comfortable with a founder-manager model where the manager’s own net worth is invested alongside clients
• Investors with a long horizon (the fund’s own target is measured over rolling 3+ year periods) who are willing to track it against that target, not just its since-inception headline
• Investors who want SIP/STP flexibility and a direct-on boarding option to avoid distributor costs

3. Who Should Likely Avoid This PMS

• Investors expecting the fund to consistently deliver on its stated 4-5% alpha target; recent 3 and 5-year figures fall short of that
• Investors seeking strong downside protection; the fund’s own data shows a roughly 50% down-market quarter hit rate since inception
• Investors who haven’t compared the fund’s recent return to what a low-cost flexi-cap mutual fund has delivered over the same stretch
• Investors uncomfortable with meaningful, relatively fast shifts in cap allocation from one disclosure period to the next

4. What Is ITUS Fundamental Value Fund?

Key Fact	Detail
AMC	ITUS Capital Advisors Pvt Ltd
Strategy	Fundamental Value Fund
Category	PMS – Multi Cap & Flexi Cap
Benchmark	Nifty 50 TRI
Inception Date	1 February 2017 (the AMC’s factsheet rounds this to January 2017 — a minor discrepancy, resolved here using the portfolio-age figure disclosed alongside it)
Portfolio Age	9 Years, 4 Months (as on 30 June 2026)
Minimum Investment	₹1,00,00,000
AUM	₹1,279.43 Cr
Total Stocks	23
Fund Manager	Mr. Naveen Chandra Mohan
SIP / STP	Available

The stated objective is refreshingly specific: “to deliver consistent outperformance over the benchmark, targeting an alpha of 4-5% across market cycles, measured over rolling 3+ year periods.”

That’s a genuinely useful, checkable promise — most PMS mandates are vaguer than this.

So let’s check it.

Naveen Chandra Mohan’s background is substantial: 20 years of experience starting at Lehman Brothers in Tokyo, followed by a role heading ex-Japan trading at NOMURA in Hong Kong, and 7.5 years as a fund manager based in Hong Kong, including as the Responsible Officer for Hutchin Hill’s Hong Kong office.

He was named best fund manager for three consecutive years by AsiaHedge (2012-14), with a prior India fund delivering a 23% IRR over seven years.

ITUS itself is built on a founder-manager model — the founders have invested their entire net worth into the fund, which is a genuine, verifiable alignment signal worth crediting.

5. Performance Review

Trailing Returns Vs Benchmark (as on 30 June 2026)

Period	ITUS Fundamental Value Fund	Nifty 50 TRI	Alpha (+/-)
1 Year	4.81%	-5.42%	+10.23%
2 Year	3.30%	0.85%	+2.45%
3 Year	11.52%	8.80%	+2.72%
5 Year	10.39%	9.98%	+0.41%
Since Inception	17.17%	13.30%	+3.87%

Calendar Year Returns (ITUS Fundamental Value Fund)

CY17	CY18	CY19	CY20	CY21	CY22	CY23	CY24	CY25	CY26 YTD
42.20%	~-7.9%*	17.48%	40.48%	29.26%	-2.82%	25.35%	12.76%	6.64%	1.24%

*CY18 figure derived from chart proportions; the printed label was partially obscured in the source disclosure.

Here’s where the fund’s own promise matters more than any of ours. The stated target is 4-5% alpha over rolling 3+ year periods.

The actual 3-year alpha is +2.72%; the 5-year alpha is +0.41%. Neither clears the bottom of the fund’s own stated range.

The 1-year (+10.23%) and since-inception (+3.87%) numbers look far more impressive — but they’re carried by standout years like CY17 (42.2%) and CY20 (40.48%), plus a sharply negative benchmark year (-5.42% for Nifty 50 in the trailing 12 months) that flatters the 1-year alpha more than it reflects stock-picking strength.

The calendar-year pattern echoes this: strong early years, a clear deceleration through CY24 (12.76%), CY25 (6.64%), and CY26 YTD (1.24%).

Not a collapse — a fund settling into a more ordinary rhythm after an exceptional start. But “ordinary” isn’t what a 4-5% rolling alpha target promises.

The AMC’s own factsheet adds a useful data point: since inception, the fund has outperformed in 14 of 26 up-market quarters (53.8%) and just 5 of 10 down-market quarters (50%), with average alpha of 0.64% and 0.89% respectively — closer to a coin flip than the strong annual numbers suggest.

Conclusion on the pattern: This is a genuinely capable, long-tenured strategy that has beaten its benchmark cumulatively.

But cumulative outperformance and consistently meeting a stated 3-year rolling alpha target are two different things, and on the fund’s own terms, the second one currently isn’t happening.

6. The Fee Reality

How This Fund Stacks Up Against a Lower-Cost Alternative

The more useful comparison for an actively managed multi-cap/flexi-cap PMS isn’t a passive index — it’s what an ordinary flexi-cap mutual fund, run at a fraction of the cost, has actually delivered over the same stretch.

Flexi Cap mutual funds as a category have averaged roughly 13.15% annualised over the trailing 3 years (category data as of mid-July 2026).

ITUS Fundamental Value Fund’s own 3-year trailing return is 11.52% — behind that category average, despite charging PMS-level fees that typically run well above a regular mutual fund’s expense ratio.

Fee Drag on ₹50 Lakhs: The Rupee Picture

Using each option’s own recent 3-year rate, projected forward:

Scenario	Return Assumed (p.a.)	Corpus After 5 Years	Corpus After 7 Years
ITUS Fundamental Value Fund (Net, at 3-Year trailing rate)	11.52%	₹86,24,498	₹1,07,26,038
Flexi Cap Mutual Fund Category Average (3-Year)	13.15%	₹92,73,481	₹1,18,72,766
The Gap	—	₹6,48,984	₹11,46,728

On this basis, an ordinary flexi-cap mutual fund basket — with none of the manager-concentration risk, none of the higher minimum ticket, and a fraction of the fee — has recently outpaced this PMS by roughly ₹6.5 lakh over 5 years and ₹11.5 lakh over 7 years on a ₹50 lakh corpus.

That doesn’t erase the fund’s genuinely strong since-inception track record.

It does mean the premium you’re paying for active, concentrated management needs to be earned again, going forward, not just claimed from the past.

7. The Zero-Based Thinking Test

Here’s the question that matters: knowing everything you now know, if you had ₹1 Crore sitting uninvested today, would you commit it to this exact strategy, on the strength of its since-inception number, knowing that its own stated 3-year and 5-year targets aren’t currently being met — and that a plain flexi-cap mutual fund has recently kept pace at a fraction of the cost?

Not “should I stay because I’ve already committed.” Not “should I stay because the manager has a strong résumé.” Just — would you sign up for this today, on today’s numbers, not 2017’s?

You might be asking yourself: doesn’t a 9-year track record count for something? It counts for the returns already banked.

It doesn’t obligate you to keep collecting future returns from the same vehicle if the case looks different today than it did when the fund launched into a strong multi-year rally.

The money in your account doesn’t know how long it’s been there. It only cares where it goes next.

This isn’t a verdict on the manager’s skill or the fund’s long-term prospects — funds go through phases, and a capable manager can absolutely turn a stretch like this around.

It’s a question about whether today’s numbers, on their own, would get you to write the cheque.

If they wouldn’t, that’s worth sitting with before deciding what happens to capital that’s already committed.

8. Decision Factor Scorecard

Decision Factor	Rating	Analysis
Uniqueness vs. existing MF portfolio	🟢	Full top-10 holdings, sector weights, and overweight/underweight positioning are all disclosed — allows a real overlap check against your existing mutual funds, unlike many peer PMS reviews.
Alpha vs. the fund’s own stated target	🔴	The fund targets 4-5% alpha over rolling 3+ year periods. Actual 3-year alpha is +2.72% and 5-year alpha is +0.41% — both below the range it set for itself.
Performance vs. lower-cost peer category	🔴	The 3-year trailing return (11.52%) sits behind the Flexi Cap mutual fund category average (13.15%) for the same stretch, despite a materially higher fee load.
Downside protection in market corrections	🟡	The AMC’s own data shows outperformance in just 5 of 10 down-market quarters since inception (50%) — real and disclosed, but only marginally better than a coin flip.
Portfolio complement for MF investor	🟢	With holdings, sector tilts, and cap composition disclosed, a genuine overlap check against existing mutual funds is actually possible here — a rare, genuine positive.
Mandate purity and discipline	🟡	Cap allocation shifted meaningfully between January 2026 (Large 50.05% / Mid 15.50% / Small 24.50%) and June 2026 (Large 45.75% / Mid 31.7% / Small 14.6% / Cash 7.95%) — fast for a long-term thesis.
Fund manager transparency	🟢	Naveen Chandra Mohan’s background is thoroughly disclosed — Lehman Brothers, NOMURA, Hutchin Hill, prior fund awards. ITUS’s founder-manager, skin-in-the-game structure adds real alignment.
Investment horizon suitability	🟢	SIP and STP are both available, exit load is nil, and the fund’s stated horizon (rolling 3+ year alpha target) is realistic and appropriately long-term.
Market cap flexibility utilisation	🟡	The fund invests across large, mid, and small caps as described, but the speed of the recent cap-mix shift raises a question of tactical trading versus the stated long-term philosophy.
Concentration vs. diversification balance	🟢	23 stocks with the top 5 holdings at a moderate 23.95% is a reasonably diversified, not overly concentrated, book for an active PMS.
AUM size and strategy capacity	🟢	₹1,279.43 Cr is a reasonable size for a diversified, 23-stock multi-cap strategy — no obvious capacity concern at this scale.
Manager tenure and continuity risk	🟢	Naveen Chandra Mohan has run this strategy since its 2017 inception — over nine years of continuous tenure, with no evidence of a manager change.
Fee schedule clarity (strategy-specific)	🟡	The fee quoted differs depending on which ITUS document you check. Not disqualifying on its own, but worth a direct, written confirmation before you commit.

Summary Scorecard

Decision Factor	Rating
Uniqueness vs. existing MF portfolio	🟢
Alpha vs. the fund’s own stated target	🔴
Performance vs. lower-cost peer category	🔴
Downside protection in market corrections	🟡
Portfolio complement for MF investor	🟢
Mandate purity and discipline	🟡
Fund manager transparency	🟢
Investment horizon suitability	🟢
Market cap flexibility utilisation	🟡
Concentration vs. diversification balance	🟢
AUM size and strategy capacity	🟢
Manager tenure and continuity risk	🟢
Fee schedule clarity	🟡

9. The Core Portfolio Architecture Question

Your core should be the part of your portfolio you don’t have to think about — low-cost, diversified, built from index funds, flexi-cap funds, or multi-asset funds giving broad market exposure at minimal cost.

Your satellite is where you take selective, higher-conviction bets — PMS and AIF strategies that earn their place by doing something your core structurally cannot.

This is genuinely one of the few PMS strategies in this review series where you can actually run that complementarity test, because the holdings and sector data are there to check against.

That’s worth real credit.

But complementarity is only half the test.

The other half is whether the satellite is actually outrunning what your core could deliver on its own.

Right now, on the most recent 3-year stretch, an ordinary flexi-cap mutual fund in your core would have done this job for less — which means the satellite allocation isn’t currently paying for itself, whatever its long-run history looks like.

10. What a Genuinely Complementary PMS Looks Like

If you’re evaluating any PMS for your satellite sleeve — this one or another — look for:

• Disclosed, verifiable holdings you can cross-check against your existing mutual fund portfolio — ITUS clears this bar better than most
• Performance measured against the fund’s own stated target, not just against a benchmark it may be structurally advantaged to beat
• A recent track record that beats what a low-cost mutual fund in the same category would have delivered, not just a strong number from years ago
• Consistency between the stated philosophy and the disclosed portfolio — if the pitch is long-term, low-turnover compounding, the composition shouldn’t be moving dramatically every few months
• A fund manager willing to explain, in writing, why the current numbers sit below the fund’s own target — not just to celebrate the ones that sit above it

11. Exit Considerations

The good news: exit load is nil, with no financial penalty structure standing between you and a decision to leave, at any point.

As with any PMS, your holdings sit in your own Demat account (here, held with Kotak Mahindra Bank and HDFC Bank as custodians), so every buy and sell the manager executes is a taxable event in your hands — stock-level LTCG or STCG, not fund-level capital gains recognized only on redemption.

Given the fund holds a reasonably diversified, 23-stock, largely large/mid-cap book, liquidity for an exit shouldn’t be a major structural concern the way it might be for a more concentrated small-cap strategy.

That said, a staggered exit across a financial year or two remains sensible purely from a tax-planning perspective, regardless of the portfolio’s liquidity profile.

12. Key Takeaways

1. ITUS Fundamental Value Fund shows positive alpha over the Nifty 50 TRI across every disclosed trailing period, from 1 year through since-inception.
2. The fund’s own stated target — 4-5% alpha over rolling 3+ year periods — is not currently being met; actual 3-year alpha is +2.72%, 5-year alpha is +0.41%.
3. Its recent 3-year return (11.52%) trails the broader Flexi Cap mutual fund category average (13.15%) for the same period, despite a materially higher fee load.
4. This is the most transparent PMS reviewed in this series: full top-10 holdings, sector weights, and benchmark-relative positioning are all disclosed.
5. Per the AMC’s own data, the fund has outperformed in only 5 of 10 down-market quarters since inception — a roughly 50% hit rate.
6. Cap allocation has shifted meaningfully in a short window (January to June 2026), worth watching for consistency with the fund’s stated long-term philosophy.
7. Manager Naveen Chandra Mohan brings 20 years of experience and has run this exact strategy since inception, with a genuine founder-manager alignment structure.
8. The fee quoted for this fund isn’t consistent across ITUS’s own documents — a straightforward thing to get confirmed in writing before committing, not a reason on its own to avoid the fund.

13. FAQ

i. Is ITUS Fundamental Value Fund a good or bad PMS?

On disclosure and long-run history, it’s genuinely strong — the best-disclosed fund in this review series. But it isn’t meeting its own stated alpha target, and its recent return has lagged a lower-cost flexi-cap mutual fund category average.

ii. What are ITUS Fundamental Value Fund’s returns?

As on 30 June 2026: 4.81% (1-year), 3.30% (2-year), 11.52% (3-year), 10.39% (5-year), and 17.17% since inception (February 2017).

iii. What is the ITUS Fundamental Value Fund fee structure?

Depends which document you look at — the AMC quotes a flat 2% p.a. fee in one place and a lower 1% fee plus a 15% profit share elsewhere. Ask your relationship manager of ITUS to confirm the exact schedule in writing before you invest.

iv. What is ITUS Capital’s AUM and minimum investment?

AUM is ₹1,279.43 Cr as on 30 June 2026; minimum investment is ₹1,00,00,000 (₹1 Crore), consistent across both sources.

v. Who manages the ITUS Fundamental Value Fund?

Mr. Naveen Chandra Mohan, founder of ITUS Capital, who has run the ITUS Fundamental Value Fund PMS strategy since its 2017 inception and has 20 years of professional investing experience.

vi. Does ITUS Fundamental Value Fund meet its own performance target? Not currently. The fund targets 4-5% alpha over rolling 3+ year periods; actual 3-year alpha is +2.72% and 5-year alpha is +0.41%, both below that range.

vii. How does this PMS compare to an ordinary flexi-cap mutual fund?

Over the trailing 3 years, this PMS returned 11.52% against a Flexi Cap category average of roughly 13.15% — a lower-cost, more liquid alternative that has recently kept pace or better.

viii. Is this PMS’s transparency level typical?

No — full top-10 holdings and sector-level disclosure, as ITUS provides, is well above what most PMS strategies publish, and a genuine differentiator in this fund’s favour.

ix. Are PMS fees worth it here?

On recent numbers, the case is weaker than the since-inception headline suggests — a comparable mutual fund category has delivered similar or better returns at a fraction of the cost over the last three years.

x. How do I exit this PMS?

Holdings sit in your own Demat account with Kotak Mahindra Bank or HDFC Bank as custodian, so exiting triggers stock-level capital gains tax. Exit load is nil, so timing can be driven by tax planning rather than any penalty.

xi. What does it mean if a fund beats its benchmark but misses its own target?

It means two yardsticks can tell different stories. A fund can be genuinely ahead of its benchmark cumulatively while still falling short of the harder bar it set for itself — exactly the situation here.

14. Our Approach

We’re a process-driven wealth advisory built around a core-satellite philosophy: a low-cost, diversified core, and a satellite sleeve reserved for strategies that genuinely complement it and outrun what that core could deliver alone.

ITUS Fundamental Value Fund is, on disclosure and long-run track record, one of the stronger PMS strategies we’ve reviewed — but we don’t recommend it at this time.

Its recent 3 and 5-year performance falls short of the alpha target it has set for itself, and over the same recent stretch, an ordinary flexi-cap mutual fund has kept pace at a fraction of the cost.

If you’re already invested here, we’re happy to review this PMS alongside your existing mutual fund portfolio — as your CFP, not as a product seller — to check whether it genuinely complements or overlaps with what you hold elsewhere, and to help you think through what, if anything, should change.