ICICI Prudential Monthly Income Plan

Understanding ICICI Prudential Monthly Income Plan

The Income Optimizer and the Regular Savings Funds from the ICICI Prudential AMC allocate assets predominantly in the debt securities and hybrid instruments, with a marginal presence in equity and equity-related instruments. While the former delivers fixed returns, the latter generates growth to stabilize the impact of market volatility in longer investment horizons.

The grid below represents the critical features of the two funds under discussion.

ICICI Prudential Monthly Income Plan – Other Highlights:

1. Fund Type

   • ICICI Prudential Income Optimizer Fund: An open-ended fund of funds (FOF) scheme where the asset allocation is predominantly in debt-oriented instruments and marginally in equity and hybrid schemes.

   • ICICI Prudential Regular Savings Fund: An open-ended hybrid scheme where debt instruments are the predominating asset.

2. Product Labelling

   • ICICI Prudential Income Optimizer Fund: The FOF scheme is suitable for investors in search of:

   • Regular income with an investment horizon of 5 years and above.

   • Not opposed to investing in debt instruments with marginal exposure to equities and hybrid assets.

   • ICICI Prudential Regular Savings Fund: The hybrid scheme mainly invests in debt instruments to suit investors seeking:

   • Medium to long term regular income solution

   • Generate regular income through investments in debt and money market instruments with a marginal presence in the equity market.

3. Investment Objective

   • ICICI Prudential Income Optimizer Fund: The scheme’s primary objective is to generate regular income through investments in debt-oriented instruments. In addition, equity and hybrid-oriented investments facilitate capital appreciation.

   • ICICI Prudential Regular Savings Fund: The scheme primarily aims to generate regular income through asset allocation in debt and money market instruments. In contrast, marginal investment in equity-oriented securities ensures capital appreciation.

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ICICI Prudential Monthly Income Plan – Eligibility

The schemes under the genre are popular among conservative investors. So, it is to learn about the eligibility norms defined for the ICICI Prudential Monthly Income Plan.

• Resident Indian adults can hold units singly or jointly with a maximum of four members.

• Minors under the supervision of natural or legal guardians

• Karta, on behalf of the HUF

• Corporate bodies, Companies, Public Sector Undertakings, the Registered Associations of persons, and Societies

• Partnership firms

• Religious and Charitable Trusts

• Banks and other Financial Institutions

• Non-resident Indians, Persons of Indian Origin, and Overseas Citizens of India

• Army, Navy, Air Force, and other Paramilitary Organizations

• Other Mutual Fund Schemes, including ICICI AMC

• Scientific and Research Institutions

• Foreign Portfolio Investors subject to RBI approval

• Any other investors approved by the Trustees from time to time

The list is only indicative, and it is in your interest to check with the AMC before investing in ICICI Prudential Monthly Income Plans. However, the list applies to both the schemes under discussion.

ICICI Prudential Monthly Income Plan – Who should invest?

After gaining insight into the eligibility norms, the natural progression is finding the target investor class for which the schemes are most suitable. Despite the varying investment objectives and ideal investment horizons, the common thread binding the investors is a regular income stream to add to their income. Finally, they bear a similar conservative risk profile. So, let us find out more about them.

1. ICICI Prudential Income Optimizer Fund

   The primary investor class is conservative in their risk profile, looking to achieve:

   • Swing allocation with the flexibility to switch within asset classes and across different market caps

   • Capable of taking aggressive and conservative calls depending on the market conditions

   • Creation of wealth in the long term through its equity assets, income accrual, and capital appreciation through portfolio components of debt and hybrid assets

2. ICICI Prudential Regular Savings Fund

   The scheme ideally suits investors looking for a conservative asset allocation to generate accrual income through debt securities and long-term growth through graded equity and equity-related securities investments.

   • Diversification across debt and equity assets

   • The scheme further benefits from market volatility in equity and debt assets through dynamic allocation and an active duration management

ICICI Prudential Monthly Income Plan – Investment Strategy

Investors get the professional expertise of fund managers navigating the investment scenario to maximize returns in tune with the scheme objectives. Accordingly, let us dig deeper into individual plans under discussion to unravel their investment approach.

1. ICICI Prudential Income Optimizer Fund

   The ideal investment horizon in the scheme is five years and above to invest in debt instruments with a minor equity market presence. The two grids portraying the asset and sector bear ample testimony to the investment strategy devised by the fund managers. In addition, the fund has yielded a CAGR of 8.47% (as of 6 May 2022) since its inception.

   ICICI Prudential Income Optimizer Fund – Asset Allocation
   Instruments	Minimum	Maximum	Risk Profile
   Debt and Hybrid	65%	90%	Low to medium
   Equity Oriented	10%	35%	Medium to high
   Money Market Instruments	0%	5%	Low to medium

   ICICI Prudential Income Optimizer Fund – Sector Based Asset Allocation (as of 31 March 2022)
   Industry	Percentage of Net Asset
   Financial Services	99.48%
   Cash, Cash Equivalents, and Others	0.52%
   Grand Total	100.00%

2. ICICI Prudential Regular Savings Fund

   The ideal indicative investment horizon in the scheme is three years and above. The risk management team of the AMC evaluates the securities proposed to invest. Accordingly, the fund’s investment strategy has yielded a CAGR of 9.87% as of 6 May 2022.

   The grids below represent the asset allocation pattern in the fund on two crucial factors.

   ICICI Prudential Regular Savings Fund – Asset Allocation
   Instruments	Minimum	Maximum	Risk Profile
   Debt and Money Market Instruments	75%	90%	Low to medium
   REITs and InVITs	0%	10%	Medium to high
   Equity and Equity-Related	10%	25%	Medium to high

   ICICI Prudential Regular Savings Fund – Sector Based Asset Allocation
   Industry	Percentage of Net Asset
   Financial services	27.86%
   Construction	15.89%
   Government Securities	13.63%
   Cash, Cash Equivalents, and Others	12.98%
   Metals	5.45%
   Services	4.65%
   Telecom	3.97%
   Automobile	2.59%
   Oil and Gas	2.26%
   IT	2.11%
   Consumer Goods	2.09%
   Pharmaceuticals	2.03%
   Cement	1.60%
   Chemicals	1.51%
   Power	0.73%
   Industrial Manufacturing	0.65%
   Grand Total	100.00%

A Few Words About ICICI Mutual Funds

The primary focus of the ICICI Prudential AMC is to bridge the gap between savings and investments and create wealth for the investors through relevant solutions. It is a joint venture between ICICI Bank and Prudential, operating since 1998. Today, it has a customer base of 7.4 million driving its exponential growth momentum. With an entire investor-centric approach, the AMC endeavors to facilitate its journey toward financial goals.

In Conclusion

The ICICI Prudential Monthly Income Plan helps fulfill the aspirations of countless conservative investors by providing uncomplicated investment solutions. In addition, the Income Optimizer and Regular Savings Funds from ICICI Prudential present an impressive track record of consistent returns. Therefore, it is the preferred destination for cautious investors for higher yields and investment security.

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