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Prudential ICICI Launches Long Term Floater

Prudential ICICI, the JV AMC owned by U.K. based Prudential PLC and ICICI Bank, has joined the bandwagon in launching its Long Term Floating Rate Plan, an open-ended debt fund. The IPO is from August 24 to September 04, 2004. The scheme is available under three Plans - Plan A, Plan B and Plan C, each available with a Cumulative option, a Dividend option and a Dividend reinvestment option. The minimum investment amount under Plan A is Rs 25, 000 plus multiple of Re1 while under Plan B and Plan C it is Rs 1 crore and Rs 5 crore respectively. There would be no entry load under any of the Plans. However, an exit load of 0.5 per cent would be charged in case investments under Plan A are sought to be redeemed within six months of investment. As for the other Plans, there would be no exit load either.

The fund would seek to mitigate interest rate risk by investing 65-100 per cent of its corpus in Floating Rate Debt instruments and the remainder of the corpus would be put into Fixed Rate Debt Instruments.