PRUDENTIAL ICICI MONTHLY INCOME PLAN

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  • Initial offer opens: September 28, 2000
  • Closing Date:          October 14, 2000
  • Nature of Scheme: Open Ended
  • AMC: Prudential ICICI Asset Management Company Limited
  • Load: No Entry Load. Exit Load of 0.50% if redeemed within six months of purchase.
  • Continuous Offer opens: Within 45 days from the close of the initial offer period
  • Sponsor: Prudential Plc and ICICI Ltd
  • Trustee: Prudential ICICI Trust Ltd
  • Minimum subscription:Rs.25000/- .
    NRIs can apply on repatriable and non-repatriable basis.
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Objective of the fund: To generate regular income and growth of capital through investments in fixed income securities.
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  Highlights

  • The fund is promoted by Prudential Plc of UK and ICICI Ltd (ICICI)
  • This scheme offers Monthly dividend plan, Quarterly dividend plan and Growth plan
  • Unit holders have the option of switching facility from one scheme to another
  • Income distributed on units of the scheme is exempt from tax under Section 10(33) of Income Tax
  Strategy of investment

Under normal circumstances the fund proposes to invest 85% of  investible funds in debt instruments and  in  money market instruments and the balance of 15% in equity.

 

Schemces launched by ICICI
Prudential ICICI Tax Fund
Prudential ICICI Growth Fund
Prudential ICICI Income Fund
Prudential ICICI Liquid Fund.
Prudential ICICI FMCG Fund
Prudential ICICI Gilt Fund
Prudential ICICI Technology Fund
Prudential ICICI Balanced Fund

 

Performance overview of the Prudential ICICI Mutual Fund

Name of the Fund NAV as on 28.09.2000 NAV as on 31.08.2000 NAV as on 31.07.2000 NAV as on 30.06.2000 NAV as on 31.05.2000 NAV as on 30.04.2000
Prudential ICICI Growth Plan 21.9 22.84 21.31 24.35 22.05 24.6
Prudential ICICI Income Plan 12.84 12.75 12.69 12.72 12.72 12.66
Prudential ICICI Liquid Plan 12.34 12.24 12.13 12.04 11.94 11.85
Prudential ICICI Gilt Fund 11.28 11.19 11.16 11.22 11.23 11.29
Prudential ICICI Balanced Fund 9.63 9.93 9.45 10.22 9.59 10.37

 

  Comparative Analysis of similar other funds
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Name of the Fund NAV as on 27.09.2000 NAV as on 31.08.2000 NAV as on 31.07.2000 NAV as on 30.06.2000

NAV as on
31.05.2000

NAV as on
30.04.2000

Alliance Monthly Income  (Gr)

12.75 12.75 12.56 12.75

12.59

12.65

ING Income Portfolio(Gr) 11.51 11.41 11.34 11.39

11.35

11.26

Kothari Pioneer Income Builder Account (Gr) 14.79 14.69 14.55 14.67

14.67

14.57

Reliance Income Plan (Gr) 13.59 13.5 13.4 13.43      13.4      13.27
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A careful study of the above table reveals that the NAVs of the above funds exhibit positive trends with a constant increase though at a slow pace.

 

  Risk Perception
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A careful observation of the performance of the fund shows that ICICI's performance has been good except in few cases like Growth and Balanced Fund, where the problem has been more of timing rather than performance.

The launching of the MIP scheme by the fund is appropriate especially in the present volatile market conditions.  Investors who are risk averse can definitely think of investing in this scheme to get regular income and growth.

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