DEBT FUNDS
Banking And PSU Debt Fund - ICICI Prudential

ICICI Prudential Banking And PSU Debt Fund

The banking sector of any economy is regarded as its lifeline, as it is all-encompassing and touches almost all the other sectors of the economy. Its significance in India is heightened, as it is a core sector, accorded with national importance.

Public Sector Undertakings (PSUs) are an important segment of the Indian economy. Due to their majority sovereign ownership, they are apparently regarded as quasi-government entities. Their presence in various core sectors gives the segment a diversified flavor. PSUs issuances are regarded as safe investment instruments and are more liquid.

ICICI Prudential Banking & PSU Debt Fund, an open-ended income fund, aims to generate regular income through investments in a basket of debt and money market instruments consisting predominantly of securities issued by entities such as Banks and Public Sector undertakings. This suits very conservative investors, who want to deploy surplus funds in an investment avenue which is oriented towards preserving investor wealth, and at the same time offering commensurate returns.

Investment Philosophy

The fund aims to allocate assets between banking and PSU issuances and depending on the short-term interest rate view, the maturities would be managed to ensure stability of returns and avoid MTM losses. It seeks to keep credit risk low by primarily investing in short maturity high quality instruments. The portfolio is structured to generate optimum accrual return with reduced mark to market volatility and seeks to invest with a view to provide reasonable returns, while maintaining an optimum balance of safety, liquidity and yield. The investable universe of the fund would comprise high credit rated instruments that normally provides safety in terms of timely repayment of interest and maturity proceeds.

Key Benefits

  • Tax efficient returns along with availability of liquidity makes it a better investment avenue as compared to other debt instruments having a short maturity.
  • The portfolio would comprise high credit quality investment grade instruments.
  • Accrual income usually provides stable portfolio returns.
  • The probability of capital erosion is low and Interest rate risk is sought to be minimized by maintaining a low duration.

This product is suitable for investors who are seeking* :

  • Short term savings solution
  • A Debt Fund that aims to generate regular income by investing in debt and money market instruments predominantly issued by Banks and Public Sector Undertakings.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Key Features

Type

An open-ended income fund

Plan

Regular & Direct

Options

-

Default Option

Dividend Reinvestment

Application Amount

Rs.5000 (plus in multiples of Rs.1)

Min. Additional Investment

Rs.1000 (plus in multiples of Re.1)

Entry Load

Nil. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor.

Exit Load

Nil.(w.e.f. 05 October 2015)

Redemption Cheques Issued

-

Minimum Redemption Amt.

Rs.500 and in multiples of Re.1, provided minimum balance should not fall below Rs.5000

Systematic Investment Plan

Available

Systematic Withdrawal Plan

Not Available



Fund Manager

Rahul Goswami and Chandni Gupta

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