The most suitable fund for disciplined investing in all equity market conditions.
- Ø The scheme is an open ended diversified equity fund that envisages enabling potential wealth creation through a large cap equity portfolio and facilitating disciplined profit taking using an inbuilt tool called a “Trigger”. The Trigger helps investors to set their target to meet their investments objectives thus enhancing the potential for creating wealth.
- The NFO period is from April 15, 2009 to May 14, 2009, units available at par value of Rs. 10/- plus applicable entry load
ICICI Prudential AMC launches ‘ICICI Prudential Target Returns Fund’ (There is no guarantee or assurance of returns), an open ended diversified equity fund.
The fund seeks to generate capital appreciation by investing predominantly in equity shares of large market capitalization companies constituting the BSE 100 Index. It provides investors with an option to switch the appreciation or entire investment with appreciation to pre-selected debt schemes of ICICI Prudential Mutual Fund automatically based on pre-set triggers for their expected target return; as and when these targets are achieved.
The Strategy
Predetermined triggers are set for investors based on their risk appetite. Based on appreciation in the NAV when investors’ pre-selected targets are achieved, appreciation if any is transferred on behalf of the investors on behalf of investors by transferring the appreciation into a debt fund of their choice so as to generate potential returns and minimize volatility.
Why invest in the fund?
The fund is most suitable for disciplined investing in all market conditions. This fund helps an investor to avoid getting greedy in bull markets and then running the risk of losing out the appreciation which can happen due to inherent cyclicity of equity markets.
Commenting on the launch, Mr Nimesh Shah , Managing Director , ICICI Prudential AMC said “At ICICI Prudential AMC our endeavor is to make available investment solutions and features that add value to an investor’s portfolio. Our internal analysis and experience of equity market investing showed us that it will serve our investors well to invest with pre-set triggers so that they are clear about the desired outcomes. If the target is clear, chances of meeting it are greatly enhanced. Equity markets are cyclical in nature and have the potential to give high returns over time but only if one is disciplined and unemotional. This offering is aimed at enhancing potential holding period returns for investors by taking the emotion out of investing. Its good to invest for long term in equity markets in order to enhance overall portfolio return, but it is equally critical to put a target in front”
The Key Fund USP
Trigger Option - The Fund offers the Trigger Option (available under Growth sub option only) The investor will have the choice to select from a set of 4 triggers viz., 12%, 20%, 50% and 100%. On achieving the pre-set trigger from initial investment level, either the appreciation in NAV per unit or the entire investment (as selected by investor) will be switched into any of the four pre-selected eligible debt schemes (please refer to the Key Information Memorandum for the list of eligible schemes). The scheme for switch can be chosen by the investor at the time of the investment.
The default options under trigger option will be trigger at 20% with appreciation in NAV switched into ICICI Prudential Liquid Plan - Growth. The investor can also choose to remain invested in the scheme without any triggers by selecting dividend payout or reinvestment options.
About ICICI Prudential Asset Management Company
ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank, a well-known and trusted name in financial services in India and Prudential Plc, one of UK’s oldest and largest players in the financial services sector. ICICI Prudential Asset Management Company, in a span of just over ten years, has forged a position of preeminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with average assets under management of around Rs. 51,456.20 Cr as on March 31, 2009 (Source: www.amfiindia.com). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors.