The Hindu Business Line : ICICI Prudential AMC launches two new funds

Mumbai, Jan. 14 ICICI Prudential AMC on Monday announced the launch of two of their new funds, ICICI Prudential Fixed Maturity Plan Series 33- Plan A and ICICI Prudential Fusion Fund Series-III. The ICICI Prudential Fixed Maturity Plan is the country’s first ever equity linked fixed maturity plan.

The fund is a close-ended debt fund providing an opportunity to gain from equity market linked returns. ICICI Prudential Fusion Fund is a three-year close-ended diversified equity fund designed to invest in companies across market capitalisations and having long-term growth prospects.

The new fund offer of the fixed maturity plan opens on January 8 and closes on February 8. This fund will be investing up to 80 per cent in equity-linked debentures. The balance will be invested in debt securities with fixed and floating interest rates. “This product is specially targeted towards investors who are risk averse and do not invest in equity markets due to fear of losing their money. This product offers the opportunity to such investors to benefit with Nifty index linked returns when markets go up while remaining worry free if the markets were to go down.

In this case if the markets were to go down then the investors will not lose their capital amount. The fund is structured in such a way that it ensures that the investor will at least get back his principle amount at the time of maturity of the fund,” said Mr Nimesh Shah, Managing Director, ICICI Prudential Asset Management Company Ltd.

The maturity period of this scheme is 1106 days from the date of the allotment. While there is no exit load for this fund, there is an exit load of five per cent. Minimum investment amount is Rs 5,000.

The other fund that the AMC will be launching, that is, the ICICI Prudential Fusion Fund Series-III, the new fund offer will open on January 8and will close on February 21. It will focus on sectors having long-term growth prospects such as infrastructure, retail consumption and services. The scheme seeks to generate long-term capital appreciation through a fusion of investment approaches.

Approaches such as pre-IPO investment, companies participating in secular growth opportunities due to the growth in demand, taking stakes in select small companies to facilitate their market re-rating and early identification of companies that are set to transition into a new growth orbit. The minimum application amount is Rs 5,000 for retail participants and Rs 5 crore for institutional participants.

The fund will be investing 70 per cent to 100 per cent in equity and equity-related securities and up to 30 per cent in debt and money market instruments.

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