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ICICI Prudential Target Returns Fund

May 11, 2009

ICICI Prudential Target Returns Fund is an open ended diversified equity fund that seeks to generate capital appreciation by investing in equity or equity related securities of large market capitalization companies constituting the BSE 100 index and providing investors with options to withdraw their investment automatically based on triggers for pre-set levels of return as and when they are achieved.

The Fund aims to generate capital appreciation by investing in equity and equity related securities of companies that form part of the constituents of the BSE 100 index andintends to in companies that have a large market capitalization and are relatively liquid and widely held in terms of investor base. The fund manager’s core philosophy for stock selection would be to assess how much a company is worth, that is, its intrinsic value. The fund will invest mainly in well established companies and the manager seeks to avoid small or even mid sized, unproven or speculative stocks.

Investors can choose from a range of triggers i.e 12%, 20%, 50%, 100% of appreciation. Instead of floating altogether a new fund [becomes difficult for us to recommend as there is no 5 year track record] to provide “Trigger Option” to investors, ICICI could have introduced the option on existing equity schemes of its AMC, since only 2 or 3 of ICICI AMC funds are performing well.

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