DEBT FUNDS
Blended Plan B - Debt Funds - ICICI Prudential

ICICI Prudential Blended Plan B

Growth in the derivatives market has created opportunities to not only hedge one's portfolio, but also to seek arbitrage opportunities presented when the same scrip trades in the cash and futures market.

The ICICI Prudential Blended Plan, an open-ended fund, is an arbitrage product that uses the differences between the cash and future price of stocks to enter into equal but opposite positions, simultaneously in both markets, for the same scrip. The fund focuses on earning the carry cost, which is nothing but the interest income that is inherent in this difference. It is a debt product, that uses the equity and equity future markets to augment its interest income. Under the current SEBI regulations however derivatives exposure cannot exceed 50% of AUM. Blended Plan invests the balance portfolio in short term debt products of high credit quality.

Investment Philosophy

This fund is a blend of equity arbitrage opportunities and short term debt instruments, and is open for subscription only for a limited period each month. It features two options:
1)Blended Plan A - which maintains at least 51% exposure to equity and equity related securities, which can be hiked upto 75%. The fund aims to hedge 50% out of the 51% equity exposure and use the 1% un-hedged portion to participate in IPOs to a limited extent. The 51% exposure to equity classifies Plan A as an equity fund and therefore provides Tax Free dividends without being subject to dividend distribution tax. 2)Blended Plan B - invests predominantly in short term debt, limiting its arbitrage exposure to less than 50%. In both cases, the portfolio component not deployed in arbitrage is held in short term debt instruments

Key Benefits

  • It enables investors to participate in cash-future arbitrage.
  • It enables augmenting short term debt income, with interest income inherent in arbitrage positions.

This product is suitable for investors who are seeking* :

  • Short Term income generation and capital appreciation solution
  • A Debt Fund that aims to generate income and capital appreciation by investing predominantly in debt securities.

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


Key Features

Type

Open ended Balanced Fund

Plan

Regular & Direct

Options

-

Default Option

Option - Growth, Sub-Option - 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

If the amount, sought to be redeemed or switched out, is invested for a period within 1 month from the date of allotment – 0.50% of applicable NAV.
If the amount, sought to be redeemed or switched out, is invested for a period after 1 month from the date of allotment - Nil.

Redemption Cheques Issued

-

Minimum Redemption Amt.

Rs.500 (plus in multiples of Re.1)

Systematic Investment Plan

Monthly SIP under Retail Option : Min. no. of Installments : 12 , Min. Installment amount; Rs. 1000/-

Systematic Withdrawal Plan

Not Available

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Fund Manager

Rahul Goswami and Chandni Gupta

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