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ICICI Ultra Short-Term Fund
The Fund is specially made for those investors who have a very short-term investment vision. ICICI Ultra Short-Term Fund is an open-ended ultra-short-term debt scheme. The Fund majorly invests in debt and money market instruments. The rationale behind creating this fund is to help investors in parking their money in a safe investment venue for a short period. They can also generate income from the Fund.
Investment Plans
-
Guaranteed Tax Savings
Under sec 80C & 10(10D) -
₹1 Crore
Invest ₹10k per month* -
Zero LTCG Tax
In-built life cover
Top performing plans with High Returns**
Invest ₹10K/month & Get ₹1 Crore returns*
Fund has invested 87.61% of assets in debt instruments, out of which 10.25% is invested in Government securities and the rest 75.08% invested in very low-risk securities. Through this asset distribution, we can make an inference that the Fund is relatively safer.
The Fund's significant holdings are in Rural Electrification Corporation, Manappuram Finance, Tata Power, Sikka Ports and Terminals, AU Small Finance Bank, Tata Realty & Infrastructure, HDFC, Power Finance Corporation, Axis Bank, Shriram Transport Finance Company, KEC International, NABARD, etc.
ICICI Ultra Short-Term Fund is available in 9 categories:
- ICICI Prudential Ultra Short-Term Fund – Growth
- ICICI Prudential Ultra Short-Term Fund – Direct Plan-Growth
- ICICI Prudential Ultra Short-Term Fund – Bonus
- ICICI Prudential Ultra Short-Term Fund – Half Yearly IDCW
- ICICI Prudential Ultra Short-Term Fund – Direct Plan Quarterly IDCW
- ICICI Prudential Ultra Short-Term Fund - Quarterly IDCW
- ICICI Prudential Ultra Short-Term Fund – Direct Plan Half Yearly IDCW
- ICICI Prudential Ultra Short-Term Fund – Direct Plan Monthly IDCW
- ICICI Prudential Ultra Short-Term Fund - Monthly IDCW
Investment Facts
|
Parameters |
Details |
|
Fund Name |
ICICI Prudential Ultra Short-Term Fund |
|
Fund House |
ICICI Prudential Mutual Fund |
|
Launch Date |
May 3 2011 |
|
Benchmark |
Primary: Nifty Ultra Short Duration Debt Index TRI Secondary: 1 Year T Bill TRI |
|
Type |
Open-Ended |
|
Minimum Investment |
Growth & Dividend - Rs 5000 (plus in multiples of Rs 1) AEP – Rs 25,000 (plus in multiples of Rs 1) Minimum Additional Investment: Rs 1000 (plus in multiples of Rs 1) Minimum SIP Investment: Rs 1000 Minimum SWP Investment: Any Amount |
|
Entry Load |
Not Applicable |
|
Exit Load |
Nil ; w.e.f. January 31, 2019 |
|
Return Performance |
Average |
|
Fund Consistency |
Consistent |
|
Risk Level |
Moderate |
Benefits of ICICI Ultra Short-Term Fund
The ICICI Short Term Fund provides many benefits to its investors like flexible payment options, less risk, nine different plans to choose from. The following are the advantages that come with investment in the fund:
Short Investment Horizon
The Fund has a very short investment horizon of three months and more. This Fund is helpful for those investors who are involved in a lot of frequent transactions. They can easily withdraw money without waiting for a long time.
No Entry or Exit Load
The Fund does not charge any entry or exit load. This means investors can withdraw or invest their money as many times as they want without being worried about the additional charges.
Two Benchmarks
The Fund follows two benchmarks Nifty Ultra Short Duration Debt Index TRI and 1 Year T Bill TRI. With the Primary index, investors can track the performance of the Fund in a very short duration of time, and with the secondary index, they can compare the performance of the Fund with government securities.
Low Risk Involved
Since the Fund mostly invests in debt and government securities, it is much safer than equity-based funds and less prone to the market's heavy fluctuations. The Fund can be a great venue to park money for a short period with relatively higher returns than bank deposits.
Fund Summary
ICICI Prudential Ultra Short-Term Fund – Growth
- Risk level - Moderate
- NAV-Rs 21.704 as of 24.05.2021
- Expense Ratio- 0.97%
- Fund Started- 03.05.2011
ICICI Prudential Ultra Short-Term Fund – Direct Plan-Growth
- Risk level - Moderate
- NAV-Rs 23.0432 as of 24.05.2021
- Expense Ratio- 0.39%
- Fund Started- 08.01.2013
ICICI Prudential Ultra Short-Term Fund – Bonus
- Risk level - Moderate
- NAV-Rs NA as of 24.05.2021
- Expense Ratio- 0.97%
- Fund Started- NA
ICICI Prudential Ultra Short-Term Fund – Half Yearly IDCW
- Risk level - Moderate
- NAV-Rs 10.644 as of 24.05.2021
- Expense Ratio- 0.97%
- Fund Started- 03.05.2011
ICICI Prudential Ultra Short-Term Fund – Direct Plan Quarterly IDCW
- Risk level - Moderate
- NAV-Rs 10.979 as of 24.05.2021
- Expense Ratio- 0.39%
- Fund Started- 10.01.2014
ICICI Prudential Ultra Short-Term Fund - Quarterly IDCW
- Risk level - Moderate
- NAV-Rs 10.7822 as of 24.05.2021
- Expense Ratio- 0.97%
- Fund Started- 03.05.2011
ICICI Prudential Ultra Short-Term Fund – Direct Plan Half Yearly IDCW
- Risk level - Moderate
- NAV-Rs 10.7977 as of 24.05.2021
- Expense Ratio- 0.39%
- Fund Started- 26.03.2013
ICICI Prudential Ultra Short-Term Fund – Direct Plan Monthly IDCW
- Risk level - Moderate
- NAV-Rs 10.8105 as of 24.05.2021
- Expense Ratio- 0.39%
- Fund Started- 08.01.2013
ICICI Prudential Ultra Short-Term Fund - Monthly IDCW
- Risk level - Moderate
- NAV-Rs 10.6769 as of 24.05.2021
- Expense Ratio- 0.97%
- Fund Started- 03.05.2011
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Funds Return Summary
ICICI Prudential Ultra Short-Term Fund – Growth
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
5.61% |
|
3 years |
7.17% |
|
5 years |
7.41% |
|
10-years |
8.0% |
ICICI Prudential Ultra Short-Term Fund – Direct Plan-Growth
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
6.24% |
|
3 years |
7.79% |
|
5 years |
8.15% |
|
10-years |
NA |
ICICI Prudential Ultra Short-Term Fund – Bonus
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
NA |
|
3 years |
NA |
|
5 years |
NA |
|
10-years |
NA |
ICICI Prudential Ultra Short-Term Fund – Half Yearly IDCW
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
5.43% |
|
3 years |
5.54% |
|
5 years |
5.41% |
|
10-years |
6.14% |
ICICI Prudential Ultra Short-Term Fund – Direct Plan Quarterly IDCW
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
6.10% |
|
3 years |
6.26% |
|
5 years |
6.22% |
|
10-years |
NA |
ICICI Prudential Ultra Short-Term Fund - Quarterly IDCW
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
5.49% |
|
3 years |
5.76% |
|
5 years |
5.63% |
|
10-years |
6.27% |
ICICI Prudential Ultra Short-Term Fund – Direct Plan Half Yearly IDCW
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
6.02% |
|
3 years |
6.01% |
|
5 years |
5.92% |
|
10-years |
NA |
ICICI Prudential Ultra Short-Term Fund – Direct Plan Monthly IDCW
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
6.30% |
|
3 years |
6.04% |
|
5 years |
6.14% |
|
10-years |
NA |
ICICI Prudential Ultra Short-Term Fund - Monthly IDCW
|
Period |
Returns Per Year (Annualized) |
|
6 Months |
NA |
|
1 year |
5.67% |
|
3 years |
5.50% |
|
5 years |
5.54% |
|
10-years |
6.26% |
Summative Pros and Cons Table
|
Pros |
Cons |
|
The Fund maintains a high CAGR or Compound Annual Growth Rate from the start. |
Provides low Average returns |
|
The low expense ratio of 0.39% |
Average 1-year return is lower than overall plan returns |
|
Invests mainly in low-risk securities |
|
Fund House Details
The ICICI Ultra Short-Term Fund is overseen by ICICI Prudential Asset Management Company Ltd. The Company is a reputed asset management institution of the nation that toils for generating long-term gain for its investors via numerous investment products.
It is a conglomeration of ICICI Bank and Prudential Plc (a famous financial service provider in the UK). With their specific abilities in the monetary area, they have settled themselves as a significant contender in the financial market.
The Fund house oversees enormous resources under administration. They additionally offer portfolio management administrations to local and international clients.
Since its inception, the Fund house has been through a very successful expansion providing financial aid to more than 6 million clients. Manish Banthia and Ritesh Lunawat manage the Fund.
They follow the principle of customer first and are tirelessly working to offer dynamic investment products to help their clients achieve desired goals without getting too much into risk.
Chief Shareholders of the Fund House are:
ICICI Bank
ICICI Bank is a notable financial institution in India. They own and manage assets of a value of rupees 13.77 trillion. The bank right now has 5324 branches distributed across all of India.
Prudential Plc
Prudential Plc is an Asia-led organization that gives a huge variety of economic solutions. The Company assists people related to the management of their major economic issues in life, such as health, retirement, and asset control solutions. Prudential Plc has a large consumer base and is indexed on a number of the large share markets like Singapore, Hong Kong, London, and New York.
Prudential Corporation Asia
Prudential is a prime insurance company that gives its offerings in nations like Hong Kong, China, Korea, India, Indonesia, Cambodia, Malaysia, Myanmar, Laos, Philippines, Singapore, Taiwan, Vietnam, and Thailand. They provide their offerings through multiple channels supplying an abundance of savings, funding and safety products.
They provide their offerings in Asian markets as well as throughout North America and Europe. As of December 31, 2019, they have a consolidated $241 billion in AUM and govern funds throughout various classes, including equity, multi-asset, fixed income, and others.
Jackson Holdings LLC
Founded over half a century ago, Jackson Holdings delivered a successful record of presenting a recommendation to gear their customers for powerful retirement answers. Jackson is undoubtedly considered one of the largest providers for life insurance coverage within the US; they provide earnings and retirement answers so that their customers will have economic freedom throughout their life.
Who Should Invest in ICICI Ultra Short-Term Fund?
No Long Commitment
If an investor wants quick in and out of money without getting into any long-term commitment, then this Fund they should look out for. With an investment horizon of three months, they can efficiently mobilize their funds.
Safe Investment Venue
This Fund is much safer compared to other equity-based funds. Predominantly invests in debt and government securities which make it suitable for conservative investors.
Investors are cautioned to exercise discretion if they are planning to invest in this particular Fund. They ought to be ready for any fluctuations in their funding value.
Conclusion
ICICI Ultra Short-Term Fund is an open-ended ultra-short-term debt scheme that primarily invests in debt and money market securities. It is suitable for investors looking for a temporary place to park their money without getting into too much risk. The Fund provides nine different schemes to invest in and has no entry or exit load.
FAQs
-
Q. What are money market instruments?
Money market instruments are those instruments that provide corporations and short-term government loans at a relatively lower interest rate. The period of the loan can be from one day to one year. Some examples of money market instruments are Certificate of Deposit, Commercial Paper, Pass-Through Certificates, etc.
-
Q. What is the Compound Annual Growth Rate of ICICI Short-Term Fund?
The compound annual growth rate for this ICICI Ultra Short Term Fund since inception is 8.00%
-
Q. What do you mean by the “Growth Option”?
Any investment with a growth option means that it will have capital invested for the long term, where market growth will occur. This, in turn, means that such investments are not meant for short term income. So, the investment will continue to be reinvested till it is redeemed. Growth type investments are suitable for long term equity mutual funds.
-
Q. What are the different venues where this Fund invests?
The Fund invests in places like Corporate Securities, Commercial Papers, Certificate of Deposits, Government Securities (short-term), Pass-Through Certificates, etc.
-
Q. What is the minimum SIP amount to start investing with?
Anyone looking to invest in these funds through SIP or Systematic Investment Plans can start with as low as rupees 1000 monthly, fortnightly, weekly, or daily. For quarterly mode, the amount is rupees 5000.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
“The investment risk in the investment portfolio is borne by the policyholder.”
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
Disclaimer: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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