NFO Review | ICICI Prudential Passive Multi-Asset Fund of Funds | Nivesh Gyan | Jignesh Parmar

 

ICICI Prudential Passive Multi-Asset Fund of Funds

(An open ended fund of funds scheme investing in equity, debt, gold

and global index funds/exchange traded funds)

New Fund Offer Opens on: December 27, 2021

New Fund Offer Closes on: January 10, 2022

Investment Objective :

 

ICICI Prudential Passive Multi-Asset Fund of Funds is a Fund ofFunds scheme with the primary objective to generate returns bypredominantly investing in passively managed funds launched inIndia and/or overseas.

However, there can be no assurance or guarantee that theinvestment objective of the Scheme would be

 

Benchmark of the Scheme

CRISIL Hybrid50+50- Moderate Index (80% weightage) + S&P Global 1200

Index (15% weightage) + Domestic Gold Price (5% weightage).

The Trustee reserves right to change the benchmark for performance of the scheme by suitable notification to the investors to this effect.

 

Minimum Application Amount:

DURING NFO PERIOD / ONGOING OFFERPERIOD:

Rs. 1000/- (plus in multiple of Re. 1)

Minimum application amount for switch ins - Rs. 1000/- and Any amount thereafter

Minimum additional application amount

Rs. 1000/- and in multiples of Re. 1/-

Minimum additional application amount for switch ins - Rs. 1000/- and Any amount thereafter

 

Plans :Regular &Direct Plan

Options: Growth Option (IDCW) with Pay out of Income Distribution cum capital withdrawal

 

ICICI Prudential Passive Multi-Asset Fund of Funds is suitable for investors who are:

 

· Long term wealth creation

· An open ended fund of funds scheme investing inequity, debt, gold and global index

funds/exchange traded funds

 

è Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

 

 

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MF education #12: Concept of Equity and Debt

Equity :

      Equity represents ownership in the company (that has issued the shares) to the extent of shares held. Shareholders participate in the management of the company by exercising the voting rights associated with the shares held. They also participate in the residual profits of the company i.e. the profits remaining after all the dues and claims against the company have been met in the form of dividends. In periods of high revenues and profits, the shareholders benefit from high dividends that may be paid to them. However, there is no assurance given to equity holders either that a dividend will be paid or the amount of dividend. A company may not pay a dividend to its shareholders even if there are distributable profits if the management decides to use the profits for expansion plans, paying off debt and other financial activities that is expected to increase the value of the shares of the company. Apart from dividends, equity investors benefit from the appreciation in the value of the shares.

Investment in equity is investment in a growth-oriented asset. The primary source of return to the investor is from the appreciation in the value of the investment. Dividends are declared by the company when there are adequate profits and provide periodic income to the shareholders.

Debt :

      Debt represents the borrowings of the issuer. Debt as an asset class represents an income-oriented asset. The major source of return from a debt instrument is regular income in the form of interest. The interest is typically known at the time of issue and may be guaranteed either by an undertaking of the government or by security created on the physical assets of the issuer.

The terms of the issue will determine the conditions such as the coupon or interest payable on the debt, the tenor of the borrowing after which the borrower/issuer has to return the principal to the lenders/investors, the security against the assets of the borrower offered as collateral, if any, and other terms.

MF education 11 : Equity, Debt, Hybrid, Solution Oriented and Other Schemes

Equity, Debt, Hybrid, Solution Oriented and Other Schemes

        The portfolio of a mutual fund scheme will be driven by the stated investment objective of the scheme. A scheme might have an investment portfolio invested largely in equity shares and equity-related investments such as convertible debentures. The investment objective of such funds is to seek capital appreciation through investment in these growth assets. Such schemes are called equity schemes.

     Schemes with an investment objective of regular income generation limits them to investments in debt securities such as Treasury Bills, Government Securities, Bonds and Debentures are called debt funds. 

Hybrid funds have an investment charter that provides for investment in both debt and equity. Some of them invest in gold along with either debt or equity or both.

       Schemes with an investment objective that is directed towards a particular goal aimed in future such as retirement solution or investments for children are called Solution Oriented Schemes.