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ICICI Prudential Child Care Plan

The ICICI Prudential Child Care Plan can either be presented as a gift or maintained as a study fund for children. It invests anywhere between 65% to 100% in the equity markets with the aim being to provide for the educational needs of kids. It is an open-ended scheme and uses CNX Nifty as a benchmark. It also brings investors the advantage of systematic transfers between gift and study plans along with systematic investments and withdrawals that can be as little as Rs. 1,000 and Rs. 500 respectively. If the investor is also the parent or guardian of the child than it offers a personal accident cover of up to Rs. 5 lakhs to them.

Type or nature of fund

This is an open ended equity fund

Investment objective

The objective of this plan is long term wealth creation through a diverse portfolio that invests mostly in equity markets. It can be used as a gift for children between the ages of 1 year and 13 years old or as a study fund for children between the ages of 13 years and 17 years.

Fund information

Inception date 31 August 2001
CRISIL rank This product has not been rated by CRISIL
Plans Regular and Direct
Options Growth
Schemes

•ICICI Prudential Child Care Plan Gift - Direct Plan

•ICICI Prudential Child Care Plan Gift - Regular Plan

Entry load Nil. There may be an upfront commision that will be payable by the investor to the distributor.
Exit load

•3% of the NAV if the units are withdrawn or switched within 1 year of allotment.

•2% of the NAV if the units are withdrawan or switched in the 2nd year of allotment.

•1% of the NAV if the units are withdrawan or switched in the 3rd year of allotment.

•Nil after the 3rd year is over.

Minimum investment

•First time investors need to invest a minimum of Rs. 5,000.

•Minimum additional investment is Rs. 1,000

SIP

•For monthly SIP the minimum investment is Rs. 1,000 and 5 post dated cheques.

•For quarterly investments the minimum is Rs. 5,000 and 3 post dated cheques.

Product label

•The risk associated with this fund is Moderately High.

•It is ideal for those who are looking for long term wealth creation for the purpose of providing for their child's education.

Benchmark

CNX Nifty Index

The CNX Nifty is an index that is owned and operated by India Index Services and Products and covers 22 sectors in India. It is an index where calculations are made based on the free float methodology.

SWP The minimum SWP allowed is Rs. 500 with increments in multiples of Re. 1.
STP Available but units can be switched between study and gift plans
Redemption The minimum amount that can be redeemed is Rs. 1,000 and multiples of it.

Fund manager(s)

Chintan Haria (Equity)

  • Education: M.COM, A.C.A. and ICWA
  • Past experience:
    • Associate Vice President. (Fund Manager) - ICICI Prudential AMC Ltd
    • Senior Manager - ICICI Prudential AMC Ltd
    • Assistant Manager - ICICI Prudential AMC Ltd
    • Management Trainee - ICICI Prudential AMC Ltd
  • Other funds managed
    • ICICI Prudential Tax Plan
    • ICICI Prudential Growth Fund – Series 8
    • ICICI Prudential Value Fund – Series 3
    • ICICI Prudential Equity Income Fund

George Heber Joseph (Equity)

  • Education: B.Com, BA English Language & Literature, Associate Member of Chartered Accountants of India
  • Past experience:
    • Fund Manager - Portfolio Management Services ICICI Prudential Asset Management Company Limited
    • Investments department, Mutual Fund Business ICICI Prudential Asset Management Company Limited
    • Senior Specialist - Equity and Treasury Business process study DSP Merrill Lynch Ltd,Mumbai
    • Senior Business Analyst - Securities and Capital Market Domain Wipro Technologies -
    • Deputy Manager - Investments MetLife India Insurance Company
    • Finance & Treasury Cholamandalam Finance Co. Ltd
    • Finance & Accounts - Tanfac Industries Ltd
  • Other funds managed
    • ICICI Prudential Growth Fund - Series 8
    • ICICI Prudential Child Care Plan - Gift Plan (Equity portion)

Manish Banthia (Debt)

  • Education: B.COM, CA and MBA
  • Past experience:
    • Aditya Birla Nuvo Ltd.
    • Aditya Birla Management Corporation Ltd.
  • Other funds managed
    • ICICI Prudential Equity Arbitrage Fund - Debt Portion
    • ICICI Prudential Short Term Plan
    • ICICI Prudential Blended Plan A – Debt Portion
    • ICICI Prudential Long Term Plan
    • ICICI Prudential Gold Exchange Traded Fund
    • ICICI Prudential Regular Gold Savings Fund
    • ICICI Prudential Child Care Plan – Study Plan – Debt portion
    • ICICI Prudential Child Care Plan – Gift Plan – Debt portion
    • ICICI Prudential Monthly Income Plan – Debt Portion
    • ICICI Prudential MIP 25 – Debt portion
    • ICICI Prudential Income Opportunities Fund
    • ICICI Prudential Income Plan
    • ICICI Prudential Balanced Fund – Debt Portion
    • ICICI Prudential Gilt Fund Investment Plan PF Option
    • ICICI Prudential Equity Income Fund – Debt portion

Investment philosophy or strategy

The investment philosophy of this fund is to invest 65% to 100% in the equity markets. Up to 0.35% may also be invested in the debt markets to provide a bit of stability to the portfolio and guard against volatile markets.

Portfolio

Sector Investment
Banks

•HDFC Bank Ltd. 10.07%

•The Federal Bank Ltd. 4.07%

•Kotak Mahindra Bank Ltd. 3.33%

•City Union Bank Ltd. 1.34%

•IndusInd Bank Ltd. 1.04%

19.85%
Software

•Tech Mahindra Ltd. 5.28%

•Cyient Ltd. 2.43%

•Sasken Communication Technologies Ltd. 1.60%

9.30%
Pharmaceuticals

•Unichem Laboratories Ltd. 3.51%

•IPCA Laboratories Ltd. 2.45%

•Alembic Pharmaceuticals Ltd. 2.13%

•Sun Pharmaceutical Industries Ltd. - Futures 2.09%

•Dr. Reddy's Laboratories Ltd. 0.91%

9%
Gas

•Gujarat State Petronet Ltd. 3.58%

•Petronet LNG Ltd. 3.06%

6.64%
Consumer Durables

•Havells India Ltd. 3.01%

•Titan Company Ltd. 2.23%

5.24%
Consumer Non Durables

•ITC Ltd. 2.85%

•DCM Shriram Ltd. 1.28%

•Mcleod Russel India Ltd. 1.09%

5.22%
Cement

•Shree Cements Ltd. 3.13%

•Grasim Industries Ltd. 2.04%

5.17%
Auto

•Tata Motors Ltd. - DVR 2.44%

•Tata Motors Ltd. 1.79%

•Tata Motors Ltd. - Futures 0.95%

4.23%
Pesticides

•Rallis India Ltd. 3.30%

3.30%
Power

•Power Grid Corporation Of India Ltd. 3.02%

3.02%

Risk measures

Sharpe ratio 0.83
Alpha  
Portfolio beta 1.33
Std deviation 15.49& (annual)

Performance

AUM Rs. 294.77 crores (As of June 30, 2015)
NAV (As of June 30, 2015)

•Regular Plan Growth Option: Rs. 99.87

•Direct Plan Growth Option: Rs. 101.57

Expense ratio

•ICICI Prudential Child Care Plan Gift - Direct: 0.81

•ICICI Prudential Child Care Plan Study - Direct: 0.51

•ICICI Prudential Child Care Plan Study - Regular 1.62

•ICICI Prudential Child Care Plan Gift - Regular

  • First 100 crore - 2.5%
  • Next 300 crore - 2.25%
  • Next 300 crore - 2%
  • Balance - 1.75%
  • Additional charge of a max of 30 Bps on sales outside top 15 cities

Returns

  2014-2015 (Absolute Returns) 2013-2014 (Absolute Returns) 2012-2013 (Absolute Returns) Compound Annual Growth Rate (Since Inception)
Scheme 8.45% 62.36% 0.87% 18.09%
NIFTY 9.95% 30.28% 10.67% 16.15%
NAV (in Rs.) 92.09 56.72 56.23 -

The growth of this fund indicates that if an investments of Rs. 10,000 was made in it at the time of inception than the fund would have grown to Rs. 99870. When compared to the benchmark growth to Rs. 79,416.37 it comes to a difference of a little over Rs. 20,000. These figures are calculated assuming that the NAV is Rs. 10.

Expert view of the fund

Since inception this plan has performed well over the years. It did perform less than the benchmark in 2012-13 and 2014-15 but in 2013-14 it performed twice as well as the benchmark. The fund itself is diversified with more investments being made in mid size stocks. Investments are also made in large and small size stocks. Being a long term investment, the investment horizon suggest by ICICI Prudential is of 5 years.

How to apply

To apply for this fund, investors can either go to the branches of ICICI Prudential where they can get assistance with filling out the forms and make the payments for the investments. These payments can be made either using cheques or DDs. The investment can also be done through distributors of this fund however there may be a commission payable if investments are made through distributors.

For online applications, investors can visit the ICICI Prudential website and log in if they have an account. The website can cater to both existing and new customers and requires only a short 4 step registration process. Once it is comple investments in the fund can be made via NEFT or RTGS transfers or even via debit cards.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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