New Fund

Pru ICICI Equity & Derivatives

Prudential ICICI Mutual Fund has come out with a new fund: Prudential ICICI Equity & Derivatives Fund which offers two types of plans:

Income Optimiser Plan

Under this plan, the money will be employed in arbitrage and derivative strategies for the equity market and also invest in short-term debt. The unhedged equity exposure will be restricted to just five per cent of the overall portfolio. Therefore, the fund will have a strong focus on restricting the downside.

There is no entry load but if redeemed within six months from the date of allotment of the NFO ( New Fund Offer ), then a 1 per cent load will be charged.

The minimum application for the individual investor is Rs 5,000.

Wealth Optimiser Plan

Whereas this plan will try to exploit the arbitrage opportunities available in the market, but it is a more aggressive option as the unhedged equity exposure can go up to 80 per cent of the portfolio value. As compared to Income Optimiser, this one will have the potential to generate higher returns, hence so will be the risk.

For this plan also the minimum application for the investor is Rs 5,000.

There is a 2.25 per cent entry load and a 1 per cent exit load if redeemed within six months from date of allotment of the NFO.

Both the plan offer growth and dividend (payout or reinvestment) option.

NFO Opens: November 8, 2006
NFO Closes: December 7, 2006