Highlights of the fund
- ICICI Prudential Regular Savings Fund is an open-ended income fund that intends to provide reasonable returns, by maintaining an optimum balance of safety, liquidity and yield, through investments in a basket of debt instruments with a view to delivering consistent performance
- The NFO period is from November 15, 2010 to November 29, 2010
ICICI Prudential Mutual Fund launches ‘ICICI Prudential Regular Savings Fund,’ an open-ended income fund.
ICICI Prudential Regular Savings Fund (IPRSF) is a portfolio of fixed income securities that caters to investors with a focus on earning superior levels of yield at lower level of risks. The fund intends to provide reasonable returns, by maintaining an optimum balance of safety, liquidity and yield, through investments in a basket of debt instruments with a view to delivering consistent performance.
The fund helps individuals to allocate money into debt investments either lump-sum or regularly via SIPs by providing an investment avenue which:
- Focuses on accrual income
- Limits volatility; invests primarily into non-gilt issuances
- Invests in investment grade fixed income securities across the yield curve
- Strives for healthy yields for a 18 to 24 months plus investment horizon
Commenting on the launch, Mr. Nimesh Shah, Managing Director, ICICI Prudential Asset Management Company Ltd. said “Through this product, ICICI Prudential AMC aspires to draw retail investors towards the debt market. Debt mutual funds facilitate an important asset allocation need of investors, contributing to their objective of wealth creation and in some cases for regular income where needed. Our industry today hardly have alternatives for retail investors to participate in the debt market and get a good yield on their long term debt investments without compromising on stability and liquidity – while this seems like a simple idea, the fact is that there are hardly any such funds available.”
ICICI Prudential Regular Savings Fund is:
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- Ideal investment for investors looking to allocate part of their long term assets into debt instruments with the ability to access liquidity when needed
- Ideal replacement for risk averse fixed income investors who invested in hybrid funds last year and may now consider booking profits at current elevated stock market levels to rebalance their asset allocation.
- Suitable for investors who are looking to lock into the current elevated level of short term interest rates in the market which is likely to prevail only for the next couple of months.
- Suitable for investors who want exposure to debt funds in the current interest rate environment but shy away from the volatility and active management of income and gilt funds.
Key Benefits:
- The fund offers a one stop investment avenue for a conservative investor looking at debt allocation for a medium to long-term investment horizon
- A disciplined investor can invest with a minimum investment horizon in mind (typically 18 months or more) by ignoring daily fluctuations in NAV
Investment Strategy:
The fund seeks to invest in securities that offer superior levels of yield at lower levels of risks. The fund’s core strategy will be to strive for returns from accrual income. It will follow a buy and hold strategy thereby managing a stable duration. Unlike other Income and Gilt funds, this fund will normally not engage in trading in G-sec on a tactical basis. Duration management will be strategic and directional only. Buying and selling of securities will not be an active part of the overall investment strategy, the scope to earn that extra returns is however, not ruled out.
About ICICI Prudential Asset Management Company Ltd.
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 twelve 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. 69,754 Cr as on September 30, 2010. (Source: www.amfiindia.com). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors.