Skip to main content

ICICI Prudential MIP 25 Fund

 

ICICI Prudential MIP 25 Fund is a debt-oriented hybrid fund that primarily invests in debt instruments, with a maximum allowable exposure in equity of up to 30 per cent of the total net assets. The fund was launched in March 2004 and has average assets of `750 crore under management for the quarter ended September.

The fund, managed by Avnish Jain (debt) and Mrinal Singh (Equity), has ranked in the top 30 percentile (Crisil fund rank two) of the monthly income plan (MIP)-aggressive category in the Crisil mutual fund ranking over the last six quarters. The consistency in ranking indicates a blend of consistent performance and disciplined portfolio management.

INVESTMENT PHILOSOPHY

The fund seeks to generate regular income through dividends, along with capital appreciation through a minority investment in equity. At the same time, investors must note that regular dividends are not assured and it is subject to the availability of distributable surplus.

Crisil classifies MIP funds as aggressive and conservative, based on equity allocation. A higher allocation to equity (1530 per cent) is classified as aggressive, and a lower allocation (up to 15 per cent) as conservative. Within the stated allocation, a fund manager may alter a portfolio's exposure based on the prevailing market scenario. ICICI Prudential MIP 25 Fund has been categorised as 'MIP Aggressive'.

PERFORMANCE

The fund has outperformed its benchmark (Crisil MIPEX) and peers across time frames, viz., six months, one year and three years. Over a three-year period, the fund has delivered annualised returns of over 14 per cent, as against a category average of 10.80 per cent for the same period and 10.48 per cent by the benchmark.

Further, an investment of 1,000 in the fund since April 2, 2004 would have grown to 2,000 till date. The same amount invested in a peer group would have returned `1,843, and in the benchmark `1,644.

ACTIVE MANAGEMENT

The fund manager has actively managed the portfolio over the last five years. As compared to peers, the fund has been more aggressive in increasing its duration when interest rates had fallen, and decreasing the maturity of its papers when these rose. As a rule of thumb, when long-term yields fall, the prices of bond securities rise, and bond-portfolio managers increase the maturity of portfolio. The reverse is also true. The exposure in equity and equity-related instruments over the last three years averaged 24 per cent and has varied between 18 and 30 per cent.

The manager has actively managed the equity component in response to the markets, based on attractiveness of valuations. Over the last five years, the fund has increased its exposure during down-market cycles and decreased it during up-market.

REGULAR DIVIDENDS

Barring October and November in 2008 during the global credit crisis, the fund has paid dividends in 46 out of 48 months.

Thus, it has been consistent in terms of dividend pay-outs. The average monthly dividend yield was 0.5 per cent over the same period.

ASSET QUALITY

Majority of the portfolio is invested in the highest-rated debt papers. During the last three years, 81 per cent of the debt portfolio on an average was invested in the highest-rated debt securities i.e. sovereign, AAA/P1+ and equivalent.
 

Popular posts from this blog

NPS for Tax Saving

The NPS is a great way to save tax if you don't mind locking in your money till you retire. Till last year, the taxability of the NPS was a big issue. But last year's Budget changed the rules and made 40% of the corpus tax free. The PFRDA wants that the balance 60% to be exempt from tax as well. The emphasis is on increasing pension coverage. So, allowing EEE status (to NPS ) is our major demand (in the Budget NPS is especially useful for investors who may have exhausted the `1.5 lakh investment limit under Section 80C but want to save more.   Another way the NPS can cut tax is by rejigging the salary.If a company deposits up to 10% of the basic salary of an employee in the NPS under Section 80CCD(2d), the amount will be tax free. Turn to page 28 to see how much tax this can save. However, the take-home pay of the employee will come down. Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 10 Tax...
Read more

BHIM App

What is BHIM? BHIM stands for Bharat Interface for Money , which is an easy way of transferring money from one bank account to an other via a smartphone using the Unified Payments Interface (UPI) platform . It is an instant payments application meant for sending money as well as requesting for payments. How is it different from UPI? BHIM is no different than UPI. But in the case of BHIM, customers don't have to download mobile applications of multiple banks, instead a single BHIM app downloaded from Android Play Store is sufficient. Other than that, payments can be made through a virtual payments ID or through account number and IFS code, same as UPI. What you need to use BHIM? BHIM can be used across an droid smartphones with version 4.0 and above, also it will be made available on iPhones and Windows smartphones very soon. Further, for feature phone users they need to use the USSD feature by dial ing *99#. Why was the need for BHIM felt when UPI is already in place? With various...
Read more

Liquidity Adjustment Facility

Liquidity adjustment facility (LAF) is a money market tool used by the central bank of a country (in India it is the Reserve Bank of India ), to infuse funds into the country's banking system when liquidity dries up. Again, in case there is excess liquidity, the central bank uses some tools to help banks manage their surplus liquidity. Usually the RBI uses the repurchase facility (called Repo ) to give short-term loans to banks to meet their temporary liquidity shortage. On the other, hand RBI uses reverse repo facility to help banks park their excess liquidity with it. Banks usually use various securities, which are approved by the RBI, as collateral when they take money from the RBI to meet their short term liquidity requirement     Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara...
Read more

Retirement planning from a long-term perspective

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds     `HOW green was my valley'. This title comes from a movie I had watched many years ago. A little boy's journey into adulthood and the story of a Welsh valley's turn of-the-century descent from pristine paradise to despoiled coal mining.   I thought of the title because it is comparatively reflective of a person's life ­ the glorious years when he is earning and the sun down years when he is not having his regular job and, hence, his living standards comes down. The reason is a combination of things. Inflation of food items, transport, increase in health related costs in the later years of life and increase in expenses in almost all basic amenities of life. In India, the social security system is almost non-existent. In some states, wherever it is available, the scales of benefits are extremely modest...
Read more

NRI from Canada and US Invest in Mutual Funds in India

Investing in Indian mutual funds by NRIs from US and Canada As of December 2016, eight Indian fund houses were accepting investments from US/Canada-based NRIs Most of the Indian mutual fund houses have stopped accepting funds from US and Canada based NRIs due to regulatory restrictions. This is because the Foreign Account Tax Compliance Act (FATCA) makes it compulsory for all financial institutions in the world to report comprehensive details of all transactions involving US/Canada residents, (including non-resident Indians) to the US & Canada Government. Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now