ICICI Mutual Fund: Suspended Fresh Investments in Six Prominent Schemes
Right after introducing changes in the schemes’ fundamental attributes and names as per the SEBI’s new rationalization and categorization rules, the AMC has announced another big change for some of its prominent products.
This time, it was in the form of the suspension in the fresh subscriptions in six of its schemes, and the announcement came into effect from May 21, 2018. The fund house said in an addendum the rule shall now be applied to all investments including lumpsum investments, switch-ins, Systematic Transfer Plans, and Systematic Investment Plans in the six schemes from the given date.
The six schemes which will experience the change will include ICICI Prudential Dynamic Bond Fund, ICICI Prudential Monthly Income Plan, ICICI Prudential Child Care Plan (Study Plan), ICICI Prudential Gilt Fund - Investment Plan - PF Option, ICICI Prudential Gilt Fund - Treasury Plan - PF Option, and ICICI Prudential Short Term Gilt Fund.
Let’s find out their details in brief
- ICICI Prudential Dynamic Bond Fund
This scheme of ICICI Pru MF has the primary objective of generating regular income while its secondary goal will be the growth of capital. It invests its assets in debt securities and money-market securities. The fund manager of the scheme is Mr. Rahul Goswami who is managing this fund since September 2012.
- ICICI Prudential Monthly Income Plan
The scheme aims to provide reasonable regular returns along with long-term capital appreciation with a pre-dominant exposure to debt instruments. Under normal circumstances, 85% of its corpus is invested in debt instruments while the exposure to equities will be at 15 percent. Mr. Manish Banthia and Rajat Chandak manage it who are handling it since September 2013 and 2012, respectively.
- ICICI Prudential Child Care Plan (Study Plan)
The scheme seeks to invest up to 25% of the investors’ money in equity and related securities to leverage growth opportunities, and the remaining 75-100% is typically invested in debt securities to seek stability in investments.
- ICICI Prudential Gilt Fund - Investment Plan - PF Option
The scheme seeks to generate a steady and consistent return from a basket of government securities across various maturities through proactive fund management aimed at controlling Interest rate risk. The investment plan will invest in gilt including T-Bills with medium to long maturity, with an average maturity of the portfolio usually not exceeding eight years.
- ICICI Prudential Gilt Fund - Treasury Plan - PF Option
It looks forward to generating income by investing in central and state government securities of various maturities. Provident Funds, Pension Funds, Gratuity Funds, Superannuation Funds, and such other entities are eligible to make investments in this scheme of ICICI Pru MF. It also aims at generating consistent returns by investing in a basket of government securities across various maturities through proactive fund management aimed at controlling interest rate risk.
- ICICI Prudential Short Term Gilt Fund
It seeks to generate steady and consistent returns from investments in a basket of government securities across various maturities through proactive fund management which is aimed at controlling interest rate risk. The fund manager plans to invest in gilt including T-Bills with medium to long maturity, with an average maturity of the portfolio less than eight years.
The Bottom Line
Typically, there is no fixed reason why a mutual fund company decides to put halt to fresh inflows in a scheme. One vital reason can be when there is a perceived lack of investment ideas which we believe happened in the case of these schemes of ICICI Pru Mutual Fund. Thus, the fund managers might be willing to sit on the cash till the market opens up for sound investments. As an investor who has invested in any of the above-listed schemes, it is alright to retain the same faith and stay invested until the fund is fulfilling your financial objective.
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