The present pandemic conditions may have a long term impact on our decision-making abilities. Even fund managers have started thinking about the sectors long a long term impact. Even economies are impacted by the varied sectors behaving differently during the present situation. Looking into the present scenarios one needs to take a call on stable but safe investments. The safest way to invest could be to align our investments with the sovereign guarantee.
Let discuss one such fund.
ICICI Prudential Long Term Bond Fund
Launched on July 9, 1998, ICICI Prudential Long Term Bond Fund is an open-ended debt scheme that intends to generate income through investments in a range of debt and money market instruments while maintaining the optimum balance of yield, safety, and liquidity.
- The Scheme intends to invest in long maturing high credit quality corporate debt.
- The Scheme seeks to actively manage the duration or interest rate risk with a view to take potential advantage of changes in interest rate cycles.
Investment Strategy
The Scheme invests predominantly in long-maturity issuances of government and corporate entities.
Security selection: The Scheme emphasizes on the high credit rating of the issuer and predominantly in AAA and equivalent Corporate Bonds.
Duration management: The fund manager actively manages the duration or interest rate risk of the scheme to take the potential advantage of changes in interest rate cycles.
Features of the Scheme
| Type of Scheme | An open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 Years |
| Plans | ICICI Prudential Long Term Bond Fund & ICICI Prudential Long Term Bond Fund – Direct Plan |
| Options | Growth and Dividend Option (Quarterly, Half Yearly and Annual frequencies) (Dividend payout* and reinvestment facility available) |
| Minimum Application Amount | Rs.5,000 (plus in multiples of Re.1) |
| Minimum Additional Investment | Rs.1,000 (plus in multiples of Re.1) |
| Minimum Redemption Amount | Rs.500 or all units where the amount is below Rs.500 |
| Entry Load | Not Applicable |
| Exit Load | Nil |
| Fund Manager | Manish Banthia, (Managing this scheme since Sep 2013 & Overall 13 years of experience) |
| Benchmark Index | NIFTY Long Duration Debt Index |
| SIP / SWP/ STP (Flex/Value) | SIP Daily, Weekly, Fortnightly & Monthly Frequency: Rs.1000/- and Multiple of Rs.1/-, Quarterly Frequency Rs. 5000/- and Multiple of Rs.1/- ---- SWP Any Amount |
This Product is suitable for investors who are seeking
- Long term wealth creation
- A debt scheme that invests in debt and money market instruments with an aim to maximize income while maintaining an optimum balance of yield, safety, and liquidity.
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