DEBT FUNDS
Savings Fund - Debt Funds - ICICI Prudential

ICICI Prudential Savings Fund

There are many factors that determine the rate of interest of securities, and constant changes in these underlying fundamentals, cause fluctuations in the interest rates, which has a direct impact on the value of our portfolio. An increase in rates reduces the value of our holdings and vice-versa.

If interest rates on instruments in the portfolio were to keep getting reset according to the prevailing market rates, then, we may be able to focus on the interest income without worrying too much about its impact on the portfolio.

ICICI Prudential Floating Rate Plan, an open-ended income fund, focuses primarily on dynamic interest rates, and takes rapid action when necessary to minimize the impact of these fluctuations on your portfolio.

Investment Philosophy

This debt fund invests predominantly in debt securities with a floating rate of interest. It focuses on floating rate instruments in the portfolio which are benchmarked to short-term benchmarks' like the MIBOR, to ensure rapid response to changes in interest rates. This also ensures that the portfolio has limited interest rate risk. The portfolio also invests in fixed rate securities, but spreads out its investments such that parts of the portfolio mature regularly, enabling redeployment at newer rates. It also uses the interest rate swap market, to swap fixed rates for floating rates. During times of an increase in interest rates, the Plan enables focus on the interest income, rather than losses in portfolio value.

Key Benefits

  • A portfolio that focuses on accrual income, which is derived from floating rate instruments.
  • Reduced interest rate risk of longer term instruments.

This product is suitable for investors who are seeking* :

  • Short term savings solution
  • A Debt Fund that invests in debt and money market instruments of various maturities with an aim to maximise income while maintaining an optimum balance of yield, safety and liquidity.

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


Key Features

Type

Open-ended Income Fund

Plan

Regular & Direct

Options

-

Default Option

Option: Plan A, Sub Option : Cumulative

Application Amount

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

Min. Additional Investment

Plans A & B: 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

Redemption Cheques Issued

-

Minimum Redemption Amt.

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

Systematic Investment Plan

Monthly Frequency : Rs. 1,000, (plus in multiple of Re 1/-) Number of Installments - 6.
Quarterly Frequency : Rs. 5,000, (plus in multiple of Re 1/-) Number of Installments - 4.

Systematic Withdrawal Plan

Rs. 500/- (plus in multiple of Re 1/-)



Fund Manager

Rahul Goswami and Nikhil Kabra

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