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ICICI Prudential Mutual Fund launches ICICI Prudential Booster Systematic Investment Plan (Booster SIP)

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Highlights:

  • Booster SIP = Rupee Cost Averaging + Value Averaging
  • Booster SIP feature - a fixed amount is invested at pre-defined intervals in the source scheme and a variable amount is transferred to the Target Scheme at pre-defined intervals depending on Equity Valuation Index
  • Allows one to invest larger installment when valuations are lower and smaller installment when valuations are higher
  • Variable amount can range from 0.1x to 10x of the base SIP amount depending on market condition

Mumbai, June 01, 2022: ICICI Prudential Mutual Fund has announced the launch of an industry first feature known as ICICI Prudential Booster Systematic Investment Plan (Booster SIP). Booster SIP is a feature wherein unit holders, based on Equity Valuation Index (EVI) model, and transfer variable amounts at regular intervals.

Booster SIP allows investors to invest in a disciplined manner to the source scheme and transfers a variable amount to the target scheme in the range of 0.1X-10X of base installment amount depending on EVI model at regular intervals. Through this feature, a smaller amount of base installment is invested when equity valuation is considered expensive. Conversely, when the valuation is considered cheap, the investment will be of a relatively higher value. For example, if the base installment amount is say Rs. 10,000 then it invests anywhere between Rs.1000 to Rs. 1,00,000 (0.1x to 10x) based on market valuation. The multiplier (0.1x to 10x) is arrived at on the basis of our Equity Valuation Index (EVI).

Outcomes under Various Approaches of Investing

Journey of Investor A: Invest Regularly in Equity over Periodic Intervals

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Data as on 30th Apr, 2022. Past performance may or may not be sustained in the future. Above is only for illustrative purposes, actual results may vary.

Journey of Investor B: Invest in more Equity when valuation is attractive & less when expensive

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Data as on 30th Apr, 2022. Past performance may or may not be sustained in the future. Above is only for illustrative purposes, actual results may vary.

Outcome Summary

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For Illustrative Purpose Only. Data as on 30th Apr, 2022. SIP started in Jan 2019. Past performance may or may not be sustained in the future. Above is only for illustrative purposes, actual results may vary.

Speaking on the launch of the product, Mr Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “Booster SIP leverages rupee cost averaging and value averaging by staggering investment through dynamic installment and dynamic tenure. Market valuation based on which the installment amount is decided is based on Equity Valuation Index.”

The disciplinary approach of regular investments is of big advantage to the investor as he/she doesn’t need to actively track the market. Booster SIP invests in Equity and Debt based on dynamic installment. As a result, this, this feature helps investors to make most out of volatile market conditions and for those looking for optimal investment approach to invest for the long term.

Potential Alpha Generation: Booster SIP Strategy

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Based on back-tested data of 5 Year Rolling returns for each month fended rom March 2010 to January 2022 For normal & Booster SIP CAGR returns are total return of Source & Target Scheme /index Nifty 50 Index, Nifty 500 Index, Nifty Midcap 150, Nifty Smallcap 250. The above returns are of benchmark/index and do not indicate returns of any scheme.

For further information, please contact Adil Bakhshi - 91-9920010203, Email - pr@icicipruamc.com

Riskometer & Disclaimers:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Booster SIP is a fixed SIP amount in the Source Scheme which is transferred through monthly SIP to Target Schemes using an Equity Valuation Based (EVI) based multiplier on the base installment amount. The multiplier is the extent to which the SIP amount may vary based on the base instalment amount. Please read terms and conditions in the application form before investing or visit www.iciciprumf.com. This facility should not be associated or confused with Booster SIP; the two are separate facilities provided by ICICI Prudential AMC Ltd

Please read terms and conditions in the application form before investing or visit www.iciciprumf.com. This facility should not be associated or confused with Booster SIP; the two are separate facilities provided by ICICI Prudential AMC Limited. However, all validations applicable for Booster SIP shall be applicable for the SIP feature under Booster SIP as well, unless specifically modified for this facility. To know the source scheme and target scheme kindly refer to the application form. ICICI Prudential Asset Management Company Ltd. reserves the right to add or delete any of the Eligible schemes in the list stated above.

The multiplier is the extent to which the base installment amount may vary. In case of Booster

SIP it will be within the range of 0.1X to 10X of the base installment. For eg, on a base installment of Rs. 10,000, the investment amount can be from Rs. 1,000 (0.1X multiplier) to Rs. 1,00,000 (10X multiplier). The multiplier is decided based on the Equity Valuation Index, EVI is the Equity Valuation Index which is a proprietary model of ICICI Prudential AMC (Henceforth referred to as EVI). EVI is the Equity Valuation Index which is a proprietary model of ICICI Prudential AMC. The EVI is derived by assigning equal weights to Price to Earnings (PE), Price to book (PB), G-Sec*PE and Market Cap to Gross Domestic Product (GDP).

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