ICICI Prudential SMART fund appealing retail investors

Posted by moneyguru

September 3, 2008

ICICI Prudential has launched a new product, ICICI Prudential SMART fund. NFO opened on August 18 which will be closed on September 19. Nilesh Shah, Deputy Managing Director of ICICI Prudential, revealed that SMART Fund will be placed among the retail investors also as it is not a kind of capital protected product.

Though credit risk is involved in it, there will be no market risks. Debentures are formulated in such manner that when the Nifty index go down, they do not participate, having the principal amount back credited with some minimum assured returns.

It is a structured debt scheme which seeks investment of 95% on equity-linked debentures,
Have two plans of 720 days and 1,080 days.
Investors will have opportunity to earn equity market linked returns.
It tends to High Net worth Individual (HNI) product for its complexity.
The Company is seeking to offer Structured Methodology Aiming at Returns over Tenure, which they call SMART Fund.

It seems that the petrochemical related products’ prices will come down due to the drop in the global price of oil. Though now RBI will be taking the final decision whether to tighten or not, the fixed income market has been divided.

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