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

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
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