ICICI Prudential Balanced Advantage Fund (MD)

Performance

Founded in 1993 as a result of a joint venture between United Kingdom’s Prudential PLC and ICICI Bank, with assets of Rs.3,05,739 Crores as of the end of FY 2017-2018, ICICI Prudential Asset Management Company Ltd. is as of now the largest asset management company in India. Spread across 120 locations in the country and having more than a million investors, ICICI Prudential Asset Management Company Ltd. has a plethora of investment options for its customers - based on their investment goal. In addition, their experienced fund managers give them the edge over their competitors. ICICI Prudential Asset Management Company Ltd. launched the ICICI Prudential Balanced Advantage Fund, which is a hybrid model, allowing investors to put their money in debts and equities as well.

Investment objective of ICICI Prudential Balanced Advantage Fund - Monthly Dividend

Using the asset allocation model of ICICI Prudential Asset Management Company Ltd., investors can look to buy low and sell high and in the long-run can gain returns by taking advantage of the market volatility. Through the ICICI Prudential Balanced Advantage Fund - Monthly Dividend, investors can invest in both equities and debt. With the ICICI Prudential Balanced Advantage Fund - Monthly Dividend options, investors can either invest in lump sum or at regular intervals and can earn a regular income as well. The growth option of this fund, however, allows the unitholder to accumulate the units and redeem them at the maturity of the fund, thereby giving the investor a larger return as compared to the dividend option.

Key features of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend

Listed below are the highlights and key features of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend:

Investment amount for ICICI Prudential Balanced Advantage Fund - Monthly Dividend

Mentioned in the table below is the investment options of the ICICI Prudential Balanced Advantage Fund:

Asset allocation for ICICI Prudential Balanced Advantage Fund - Monthly Dividend

Who can Invest in ICICI Prudential Balanced Advantage Fund - Monthly Dividend

Listed below is the eligibility criteria of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend:

• Resident Indians
• Non-resident Indians
• Only the primary unitholder will be covered by the insurance. Not applicable for the second and third party onwards.

NAV Disclosure and Benchmark for ICICI Prudential Balanced Advantage Fund - Monthly Dividend

The net asset value of the fund will be calculated and disclosed at the end of every business day - barring special circumstances. The NAV of the fund will also be published in at least 2 daily newspapers and will be published on the official website of the AMC (ICICI Prudential Asset Management Company Limited) and AMFI (Association of Mutual Funds in India). On the aforementioned websites, the portfolio of the scheme will be disclosed at the end of the month or by the 10th day of the following month. The benchmark for ICICI Prudential Balanced Advantage Fund - Monthly Dividend is CRISIL Hybrid 35+65 - Aggressive Index.

ICICI Prudential Balanced Advantage Fund - Monthly Dividend Fund Manager

The equity funds are managed by Sankaran Naren, Rajat Chandak, and Ihab Dalwai while the debt funds are managed by Manish Banthia. An experienced lot, Sankaran Naren has 26 years of experience and has been managing the ICICI Prudential Balanced Advantage Fund since July 2017, while Rajat Chandak has 8 years of experience and has been managing the ICICI Prudential Balanced Advantage Fund since September 2015. Ihab Dalwai has 5 years of experience and has been managing the equity funds of the ICICI Prudential Balanced Advantage Fund since January 2018, while Manish Banthia who manages the debt funds of the ICICI Prudential Balanced Advantage Fund has 13 years of experience and has been managing this fund since November 2009.

Investment restrictions of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend

Listed below are the key investment restrictions of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend in accordance with SEBI regulations:

• An investor cannot invest more than 10% of the net asset value of the fund scheme in money and non-money market instruments in debt instruments issued by a single entity. The investment limit can be extended to 12% on approval of the board of directors of the asset management company.
• An investor can invest more than 10% of the net asset value of the fund scheme in un-rated debt instruments. In addition, the total investment cannot exceed 25% of the NAV of the mutual fund.
• The fund cannot own more than 10% of the company’s paid-up capital across all schemes.
• Transfer from one scheme to another in a mutual fund is possible only if:
• Transfers are done at the current market rates and on spot basis.
• The transfer is within the investment objective of the scheme.
• Should be within the inter-scheme transfer provisions as set by the asset management company.
• An investor can buy and sell securities only on the basis of deliveries. Short selling can be done in accordance with the regulations set by SEBI.
• The funds cannot be parked in the bank deposit if the bank has invested in the scheme.
• The mutual fund scheme cannot be invested in:
• A group company of the sponsor of the fund or any unlisted security.
• In a fund that is more than 25% of the net asset of the group of companies of the sponsor.
• No scheme can be invested in more than 10% of the net asset value of the equity shares of a single company.
• The mutual fund scheme at no point can invest more than 5% of its net asset value in unlisted equity shares.
• No loans can be advanced from the scheme at any point of its term.
• The investor cannot borrow or redeem more than 20% of the NAV of the individual scheme and the borrowing period cannot exceed 6 months.
• The overall limits for derivative transactions are listed below:
• The collective gross exposure through debts, equities, and derivative positions at no point can exceed 100% of the NAV of the scheme.
• The premium paid should not exceed 20% of the NAV of the scheme.
• For schemes with a maturity less than 91 days, no exposure will be created.
• The restrictions for group schemes are as follows:
• The total exposure of a group debt scheme at no point can exceed 20% of the NAV of the scheme except in the case of Public Financial Institutions, Public Sector Banks, or Public Sector Units.

Dividend policy of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend

The dividend policy of the ICICI Prudential Balanced Advantage Fund - Monthly Dividend for the dividend and growth option are as follows:

• Growth Option

For this option chosen by investors, the income earned through the scheme will be reinvested and there will be no declaration of dividends. The reinvestment will be reflected in the net asset value of the scheme. This is particularly for those investors looking for a long-term capital appreciation and not for those looking for a regular income.

• Dividend option

For this option, investors will earn a regular income based on the net surplus of the fund. The remaining net surplus will be reinvested in the scheme following the payment of dividends and taxes and the reinvested amount will be reflected in the net asset value of the scheme.

• Dividend payout

As per SEBI regulations, the dividend payout should be done by the asset management company within 30 days of the declaration of the dividend. The dividend will be paid directly to the bank account of the unitholder or via cheque. In the case of a dividend payout via cheque, the cheque will be posted to the address of the unitholder. The minimum dividend payout should be Rs.100 else the amount will be ploughed back into the scheme.

• Dividend reinvestment

The investor can choose to reinvest the units rather than cash them. The reinvested units will be credited to the units of the next cycle and will be reflected in the net asset value of the scheme.

Other facilities under ICICI Prudential Balanced Advantage Fund - Monthly Dividend

The special facilities offered with the ICICI Prudential Balanced Advantage Fund - Monthly Dividend are mentioned as follows:

• Systematic Investment Plan (SIP)

An investor can choose the Systematic Investment Plan as well which ensures that investments are made periodically. When registering, the investor can invest a minimum of Rs.1,000 and multiples of Rs.1 every month or Rs.5,000 and multiples of Rs.1 on a quarterly basis. Investors can choose this mode of payment when filling in the application form of the scheme. In addition, investors can choose the frequency of the payment as well as the payment dates.

Note: Investors have to mention the scheme name in the SIP application form. If the date of the investment is not mentioned by the investor, then the date will be automatically set for the 10th of the month, based on the frequency chosen by the investors. If the investors fail to mention the end date of the SIP, then 5 years from the allocation of the funds will be considered the end period.

• SIP top-up facility

In order to achieve capital appreciation, investors can also opt for the SIP top-up facility. Investors have the choice of a fixed top-up or a variable top-up. The details of the SIP top-up facility are as follows:

• Investors can choose the fixed top-up option for a minimum top-up of Rs.500 and multiples of Rs.500.
• For the variable option, investors can choose a top-up percentage of 10%, 15% or 20%. A subsequent top-up of multiples of 5% can be made as well.
• Investors can choose the frequency of either annually or half-yearly to make the top-up.
• The investor has to select the top-up facility in the application form to be eligible for this special facility.
• For the quarterly SIP, the only top-up frequency is the annual mode.
• Existing investors can also opt for the top-up facility if they haven’t done so when making the initial investment.
• The payment for the top-up can be made via cheque.

• Systematic Withdrawal Plan (SWP)

Investors or unitholders can also choose the Systematic Withdrawal Plan (SWP) which allows them to withdraw a specific amount from their units every month. This is particularly for investors who wish to have a regular inflow of cash and choose to invest a lump sum amount and gain a regular income from it. The minimum amount that one can withdraw at the point of registration is Rs.500 and in multiples of Rs.1. The minimum installments for the monthly and the quarterly modes are 2. That said, the Systematic Withdrawal Plan (SWP) can be terminated by the unitholder at any point.

• Systematic Transfer Plan (STP)

With this special facility, unitholders can choose to transfer their units or a fixed amount from one scheme to another scheme within the same fund at regular intervals.

Why you should Invest in ICICI Prudential Balanced Advantage Fund - Monthly Dividend

For investors that aim for long-term capital appreciation and wish to establish this by investing in equities, debt funds, and derivatives, the ICICI Prudential Balanced Advantage Fund - Monthly Dividend is perfect for them. While the growth option of this fund allows investors to accumulate their units and redeem them on maturity, the monthly dividend option is for investors that wish to see income at regular intervals. For those who have retired or for individuals that have a lump sum amount and wish to make an investment, the ICICI Prudential Balanced Advantage Fund - Monthly Dividend is perfect for them as through the investment of the lump sum, they can enjoy the benefit of a regular income by taking advantage of the market volatility and buying units at a low price and selling them for a higher price.

GST rate of 18% applicable for all financial services effective July 1, 2017.