ICICI Prudential Mutual Fund launches two new schemes

Scheme I

ICICI Prudential Fixed Maturity Plan Series 33 – Plan A


ICICI Prudential Fixed Maturity Plan Series 33 – Plan A is India’s first equity linked fixed maturity plan. The fund is a close ended debt fund to be launched in India providing an opportunity to gain from equity market linked returns .

The Fund seeks to invest up to 80% in Equity linked debentures. The balance will be invested in Debt securities with fixed and floating interest rates, with ratings generally of AA- or above.

New Fund Offer (NFO) is open between January8 to  February 8.

After the launch, Nimesh Shah, managing director, ICICI Prudential AMC said, "I am pleased to announce the launch of India’s first Equity Linked Fixed Maturity Plan. This product is specially targeted towards investors who are risk averse and do not invest in equity markets due to the fear of losing their money. This product offers the opportunity to such investors to benefit with Nifty index linked returns when markets go up while remaining worry free if markets were to go down. In other words, it offers complete peace of mind to the investor by taking care of all of his worries associated with investing in equity markets.”

Key features of the fund are - 

The structure of the fund is designed so that when equity market goes up, the fund gives equity linked returns and when equity market goes down, the structure of the debenture steps in to keep the investor worry free. However, there is no assurance of any capital protection or capital guarantee for investors in this scheme.
The fund provides the advantage of periodic liquidity  every six months from the date of allotment. The Fund has no entry load

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Scheme II

ICICI Prudential Fusion Fund Series – III

ICICI Prudential Fusion Fund Series – III is a 3-year close-ended diversified equity fund designed to invest in companies across market capitalization, having long-term growth prospects. The fund seeks to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of companies through a fusion.
The NFO is open between January 8 to February 21.

The fund seeks to adopt the following Strategy:

Concentration on businesses and economic fundamentals with a focus on sectors having long term growth prospects like
Infrastructure, Retail Consumption and Services
Investment at the pre-IPO stage: Investments in companies at the pre-IPO stage will allow the fund to potentially benefit in case of significant capital appreciation when such companies go public.

Taking meaningful stakes in small companies and facilitate their market (investor) communication: The fund proposes to take meaningful stakes in attractive small companies that may over the tenure of the Scheme grow big.

Companies participating in secular growth opportunities due to explosive growth in demand: This Scheme seeks to invest in companies across Infrastructure, Consumption and Outsourcing, which potentially offer long-term growth prospects. Within the broad universe that these investment opportunities potentially offer, the Scheme would be focused on investing in companies that have a huge and sustainable demand potential.

Transition from Mid-cap to Large-cap: The macro economic and corporate fundamentals of India Inc are very strong. Such environment is conducive to overall growth in corporate earnings. Companies, which have the potential to scale up to take advantage of the growth opportunities will be the ones, which are likely to transform from a mid cap to a large cap company.

Early identification of companies that are set to transition into a new growth orbit: With the new wave of economic expansion and globalization that India is undergoing, there are several sunrise industries that have the potential to grow into large and fast growing industries. An early entrant in such industries will naturally have an edge.


Bottom-up stock picking in companies across market capitalization.

Nimesh Shah, managing director, ICICI Prudential MF said, "As the name suggests, it is the third product offering in the Fusion Series which has received excellent response from all investors in the past. Series III aims to create wealth for investors in the fund through a fusion of attractive investment opportunities across market capitalization and investment themes of Capex, Consumption and Services as identified by our strong Investment team.”

“The Fund will adopt various strategies to outperform the market. Like making investments at the pre-IPO stage, participate in value unlocking by taking meaningful stakes in small companies that are set to transition into a new growth orbit,” he said.

The fund is an ideal investment for investors who seek wealth creation and have patience to give their investments a minimum time horizon of 3-years to perform.