ICICI Prudential MF Unveils Monthly Income Plan

ICICI Prudential Mutual Fund has unveiled a new fund named as ICICI Prudential MIP 5, an open ended income scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 14 April and closes on 27 April 2011.

The investment objective of the scheme is to generate regular income through investments in fixed income securities so as to make regular dividend distribution to unitholders seeking the Dividend Option. The secondary objective of the scheme is to generate long-term capital appreciation by investing a portion of the scheme's assets in equity and equity related instruments.

The scheme will allocate 90% to 100% of assets in debt securities, money market instruments and cash with low to medium risk profile. On the other side it would allocate upto 10% of assets in equities & equity related securities with medium to high risk profile.

Cumulative and Dividend Options are available under the scheme. Cumulative Option shall also have the facility of Automatic Encashment Plan. Dividend option shall have dividend payout and dividend reinvestment facility with dividend reinvestment as default facility. Dividend option will have Monthly, Quarterly and Half Yearly dividend frequencies. If any investor fails to specify option under the scheme then Cumulative option will be the default option.

Entry load charge will not be applicable for the scheme. The exit load charge will be 1% of the applicable NAV, if the amount, sought to be redeemed or switched out, is invested for a period of upto one year. Nil, if the amount, sought to be redeemed or switched out, is invested for a period of more than one year from the date of allotment

The schemes performance will be benchmarked against Crisil MIP Blended Index.

The minimum application amount is Rs 5000 and in multiples of Rs 1 under Cumulative and Dividend option. Whereas under, Automatic Encashment Plan it is Rs 25000 and in multiples of Rs 1.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 1 lakh under the scheme.

The scheme will be managed by Mr. Chaitanya Pande (Debt Portion) and Mr. Mrinal Singh (Equity Portion).

Source: http://www.adityabirlamoney.com/news/468152/10/22,24/Mutual-Funds-Reports/ICICI-Prudential-MF-Unveils-Monthly-Income-Plan-