The Money Today-Plexus Management new fund evaluation analyses the ICICI Prudential Target Returns Fund.
Fund Facts
Offer open: Till May 14
Scheme type: Open-ended diversified equity
Minimum investment: Rs 5,000; unit price: Rs 100
Loads:
Entry load: 2.25%
Exit load: 1.5% (less than six months); 1% (six months to one year)
Options: Dividend (payout and reinvestment) and growth (trigger option with triggers at 12%, 20%, 50% & 100% from the initial investment level)
Investor grievances: Kamaljit Saini. Tel: 022-24999777; Fax: 022-24997029; E-mail: enquiry@icicipruamc.com
Fund Stats
Objective: To offer capital appreciation by investing in equity or equity-related securities of large-cap companies in the BSE 100 index. Also seeks to provide investors the option to withdraw their investment automatically based on triggers for pre-set levels of returns.
Benchmark: BSE 100
Fund manager: Sanjay Parekh
Asset allocation: 65-100% (equity and equity-linked), 0-35% (debt & cash equivalent)
Comparable existing schemes: none
Fund Prognosis
Idea distiller: The idea is to reap profits whenever possible. If investors put in money with a pre-set target, they know what they are looking for and the chances of realising the target are greatly enhanced.
Fund house report: Returns Profile 3/5, Risk Profile 3/5
Fund manager's report: Returns Profile 3/5, Risk Profile 3/5
Scheme DNA: Four fundamentals of the fund scheme
Unique Idea: High, Returns Possibility: High, Risk: Low, Operability/Complexity: High
Investor Takeaways
Who should apply: The fund can benefit all investors. While conservative investors can set lower trigger points, the more aggressive ones have the option to push for higher gains.
Comments: Traditionally, dividends have been the only way to reap profits, so the fund is a novel initiative. On achieving the target, the appreciation or the entire investment is transferred to one of the four debt schemes chosen by the investor. The only drawback is that it is up to the investors to decide when they want to get back into the scheme, and it's not possible to take the right decision every time.
