Prajna Capital

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• ULIP Review: Bajaj Allianz Money Secure Insurance Plan
• What could be a comprehensive personal Insurance?
• Mutual Fund Review: LIC Nomura MF Dhanasahayog
• Birla Sun Life Pure Value Fund, Birla Sun Life Frontline Equity Fund and Birla Sun Life - Tax Relief'96
• Tata Balanced Fund
• Seven Investment Myths not to Fall for
• Student Insurance Plans - What Are They?
• Axis Mutual Fund - Its Schemes
• ICICI Prudential Mutual Fund

ULIP Review: Bajaj Allianz Money Secure Insurance Plan Posted: 13 Sep 2011 06:39 AM PDT Money Secure Insurance Plan (MSIP) is a Type I unit-liked insurance plan that offers a minimum guaranteed return of 3% per annum on the premium invested on maturity. This is a small-ticket size scheme that gives out higher of the fund value or sum assured as death benefit. The premiums paid are invested in the Assured Return Fund which can invest only up to 50% of the amount in equity. Besides regular charges, MSIP levies an extra 2% as guarantee fee.     Our View The Money Secure plan is unique as it provides protection from downside market risk. However, due to its heavy charges including the 2% guarantee fee, the scheme only helps in providing capital protection and not capital appreciation. Further, the upside returns in the fund are limited, as the Assured Return Fund — the only fund available for investment — is a debt-oriented fund. Currently, it does not have any equity exposure. The performance of the Assured Return Fund is also not very encouraging. It has generated just 2.7% returns months in , the last against seven 4.5% for the Crisil Composite Bond Index. Unique Feature MSIP is the lowest ticket size product available in the Ulip category. It allows an annual premium of as low as Rs 7,000. Further, it is the only product that offers a 3% downside guarantee to the investor. The scheme also offers a plethora of riders with extra charges. For Existing Customers This plan is suitable for an investor with a low risk-return profile as it gives conservative investor assurance of capital protection. Those already invested in the plan should try to opt for limited premium payment and stay invested for 10 years to maximise returns. Although the plan allows for payout of 20 times the death benefit, one may add term insurance if not adequately insured. For Those Looking to Invest Though the product's low-ticket size is an attractive feature for low-income band investors, the soaring cost structure nullifies the effect of its guarantee and also trims investment available in fund. Moreover, since most of the investment is in debt, investors with a high risk-return profile should avoid investing in such Guarantee Maturity plan.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

What could be a comprehensive personal Insurance? Posted: 13 Sep 2011 01:44 AM PDT      An increasing number of people are recognising the need for insurance, and the smart ones go for a term cover, which is the cheapest and most efficient form of insuring one's life. However, the question remains: Does the term plan take care of all your insurance needs? An individual is exposed to various risks such as hospitalisation, accidental disability and critical illness, besides death. It is, therefore, necessary to look beyond pure term cover. TERM INSURANCE For beginners, pure term life insurance promises to pay the sum assured when the policyholder dies. It does not offer any other benefit like bonus or returns. In fact, if the policyholder outlives the policy term, there would be no maturity benefits. Term insurance premiums have come down as life insurance companies offer products online in the backdrop of improved mortality experience. For example, now, a 30-year-old male life assured can get a pure term life insurance of . 1 crore and for a term of 30 years, by paying a premium of below . 10,000. But, this basic life cover would be of no help if the policyholder meets with an accident and loses, for instance, both legs. The only solution is to enhance the cover with accident disability covers. ACCIDENT DISABILITY COVER It is better to buy, by paying a little extra, an accident disability cover with the term plan. The premium hovers around . 1 per thousand of sum insured. The rider kicks in if the life assured dies or is permanently disabled due to an accident. If the life assured losses legs, he is paid the sum assured. The basic life cover continues thereafter. But not all are gung-ho about the accident cover rider offered with life insurance policies. The accident disability cover of general insurance companies offers wider benefits such as temporary total disability cover, loss of income cover, medical expenses cover and advanced benefits such as broken bones benefit. The premium payable for riders, excluding health cover riders, should not exceed 30% of the premium for the basic life insurance. This limits the accident cover you can buy with a life insurance policy. On the non-life insurance platform, enhanced cover costs 50% to 100% more than on the life insurance platform. It is better to buy an accident disability rider along with the life insurance policy due to the ease of purchase. But since, in life insurance, the sum assured for the accident disability rider is capped much below the sum assured offered for life cover, it is better to buy a general insurance policy also to enhance the cover. HEALTH COVER Like accidents, hospitalisation also takes a toll on an individual's financial health. This is where health insurance policies come to your rescue. You should always have a medical insurance policy that promises to reimburse your actual expenses, as a core holding of your insurance portfolio. You may opt for a family floater option to extend cover to the entire family. Additionally, you can buy hospitalisation cash policy. Hospitalisation cash policy offers a fixed daily benefit to the insured individual upon hospitalisation, which can be utilised to pay for miscellaneous expenses not covered by the health insurance policy. The policy that reimburses actual expenses will pay for the admissible expenditure you incur in a hospital. If you still want to ensure more cover, you can add high deductible health insurance policy to your portfolio. This policy reimburses actual expenses incurred on hospitalisation and treatment above a pre-determined level. This can also help one save a lot in terms of premium. For example, instead of buying a . 10-lakh medical policy, buy a . 3-lakh policy and then a . 7-lakh high-deductible policy, which pays for expenses over and above . 3 lakh. Both put together offer a good solution for most medical insurance needs. CRITICAL ILLNESS Despite all these precautions, the advent of a critical illness can still wipe out your savings and force you to hunt for more funds for treatment. So check out the critical illness rider available with many term insurance products of life insurance companies. There are two types of critical illness riders on offer. First is the standalone rider, which pays if the life assured is diagnosed with a critical illness it covers. The sum assured is paid and the basic life insurance cover continues. The second is accelerated critical illness benefit rider. Upon diagnosis of a critical illness covered, the life insured is paid the death benefit available under the policy and the policy ends. The premium for a standalone critical illness rider is higher than the premium payable for accelerated critical illness rider, the underwriting requirement for standalone critical illness rider is also higher.   Individuals with family history of a critical illness should ensure that they buy adequate critical illness cover at an early age. Critical illness cover is also available as a standalone product with general insurance companies. One can compare the critical illnesses covered under the rider and general insurance products before deciding on one. The premium payable towards critical illness rider under a traditional term life insurance policy remains the same throughout the term. But, in case you buy a general insurance policy covering critical illness, the premium rises with age. Sure, these so-called pure risk covers won't bring you anything in return. But they offer you something more invaluable: peace of mind. Even if you have to face an unfortunate situation in life, you will not have hit the pause button. There will be no need to rush to break fixed deposits, liquidate investment or seek help from friends to fund the expenses to take care of the situation. All you have to do is to get well soon and restart your life in full steam.

Mutual Fund Review: LIC Nomura MF Dhanasahayog Posted: 12 Sep 2011 11:42 PM PDT Objectives: An open ended Income and Growth scheme which seeks to provide regular returns and capital appreciation according to the selection of plan by investing in equities and debt. Issue Price: Sales at NAV related prices subject to entry load conditions. Liquidity: The scheme has no lock-in period. Units for sale will be available on an ongoing basis, on all business days. Entry/Exit Load: The scheme has an entry load of 1% and an exit load of 2% at present. Options: The Scheme offers investment under three Plans viz. 1. Plan A- Dividend 2 Plan B - Dividend Reinvestment 3 Plan C- Growth Flexibility: The Scheme offers the flexibility to switch among the various other schemes and options offered by the LIC Mutual Fund, keeping in mind the changing investment needs. Minimum Investment: Minimum investment of Rs 1000/- and thereafter in multiples of Rs.500/- for individuals and Minimum investment of Rs.10000/ - and thereafter in multiples of Rs1000/- for institutions   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Birla Sun Life Pure Value Fund, Birla Sun Life Frontline Equity Fund and Birla Sun Life - Tax Relief'96 Posted: 12 Sep 2011 10:24 PM PDT Birla Sun Life Pure Value Fund   Birla Sun Life Pure Value Fund is a fund that seeks to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy. Birla Sun Life Frontline Equity Fund   Birla Sun Life Frontline Equity Fund is an open-ended diversified equity fund, which invests in handpicked frontline stocks (i.e. stocks which have the potential of providing superior growth opportunities) such that it is representative of all leading sectors of its chosen benchmark. Birla Sun Life - Tax Relief'96   This fund aims at achieving long term growth of capital along with Income Tax benefits for investors under section 80C.-----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Tata Balanced Fund Posted: 12 Sep 2011 09:48 PM PDT Objective To provide income distribution and / or medium to long term capital gains while at all times emphasising the importance of capital appreciation. Option Available Growth & Dividend Entry Load For each Investment amount less than Rs 2 crores : 2.25% For each Investment amount equal to or more than Rs. 2 crores : Nil. Exit Load For investment amount greater than or equal to Rs. 2 crores: NIL. For investment amount less than Rs. 2 crores: 1% if redeemed within 6 months from the date of allotment. Minimum Application Amount Rs.5,000/- and in multiples of Re.1/- thereafter   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Seven Investment Myths not to Fall for Posted: 12 Sep 2011 07:51 PM PDT MYTH NO 1: Stocks Trading Below Book Value Are Cheap Book value (BV) is the actual worth of a stock as in a company's books/balance sheet, or the cost of an asset minus accumulated depreciation. BV depends more on historical cost and depreciation and often has little correlation to the current share price. Shares of industries that are capital intensive trade at lower price/ book ratios, as they generate lower earnings. On the other hand, those business models that have more human capital will fetch higher earnings and will trade at higher price/book ratios. Price/book (ratio) of below 1 may be cheap but one should see other aspects such as earnings forecast, guidance, management and debt on the books of the company. MYTH NO 2: Stocks Trading At Low P/E Are Under-Valued Price to earning ratio (P/E) is one of the most talked about ratios in the market. This is based on the theory that stocks with low P/Es are cheap. However, P/E alone doesn't tell much about the stock price. P/E multiples may be a quick way to value a stock but one should look at this in correlation with expected growth earnings, the risk factors involved, company's performance and growth potential. This is surely a myth. It is also an indication of uncertain future earning of the stock concerned. The idea behind dividing price with earnings is to create a level playing field where some kind of comparison can be made between high- and low-priced stocks. Since P/E ratios vary across sectors, with growth stocks consistently trading at higher P/E, one can only compare the P/E ratio of a stock to the average P/E ratio of stocks in that sector. MYTH NO. 3: Penny Stocks Make Good Fortunes Penny stocks by nature are low priced, speculative and risky because of their limited liquidity, following and disclosure. If it's easy to invest in penny stocks — as here you shell out much less money per share than you would require for a blue-chip firm — it's also easy to lose. Fortune can be made by high-denomination stocks also. Denomination has nothing to do with the rationale for picking a stock. Generally, retail investors are fond of stocks that are at sub-. 100 levels. But there may be stocks that may be trading in . 1,000-plus price but may well be cheap. Clarity on earnings is more important here. Anytime, I would be more comfortable buying an ICICI Bank (currently trading at . 1,038) than an IFCI at . 45. One should look at earnings visibility. MYTH NO. 4: The Worst Is Over In The Stock Market Timing the market, a common strategy among investors, means forecasting and that should best be left to astrologers and tarot readers. If one has done one's valuation studies, one shouldn't worry about timing the market. No one had predicted the bull run would take the Sensex from a level of 10,000 in February 2006 to over 21,000 in January 2008 — just as no one had any idea of the following crash, which saw the same index plummeting to 9,000 in March 2009. Timing the market is more of a gut feeling. It's more on the basis of perception, as there is no such thing (that the worst is over) when the future is uncertain. One can never surely time the market. The worst is over is more of a probability than a certainty. Timing the market is very difficult as market is driven not just by earnings but also by sentiments. MYTH NO 5: Stocks That Give High Dividends Are The Best Bet This comes from the notion that regular dividends are extra income in the shareholder's hand. This may not always be true. While a company may be making decent payouts every year, the share price appreciation may not be comparatively high. Before investing in companies paying high dividends, it's important to analyse if the company is reinvesting enough profit to grow its earnings consistently. It's not dividend that matters but the yield. For eg, a company may pay a 100% or even a 300% dividend on a stock with face value of . 10. So, the investor may receive . 10 or . 30 per share when the stock may be currently trading at . 800 or . 1000. This would translate into an yield of 1% or 3% only. Also, such companies may not necessarily be reinvesting their earnings in the business to generate future earnings and so there may be no stock movement. The dividend may be high but the EPS and growth per se may be constant. MYTH NO 6: Index Stocks Are The Best Stocks If this was true, most investors would safely park their money in such stocks in anticipation of maximum profit without looking out for other value stocks. Most indices are a collection of stocks with the highest market cap. Take, for eg, the Sensex. Companies that make up the index are some of the largest, with stocks that are highly traded based on their free-float. Index stocks may not necessarily be the best stocks as they are mostly based on market-cap or free-float of the company and not earnings. This doesn't mean that all stocks of the Sensex are high earning stocks. One must take a stock-by-stock call. The stock price of a company depends on its earnings. One can find high-earning stocks outside the key indices as well, he says. The risk is certainly less with index stocks as they are well researched and leaders in their respective sectors, but, again, the margins may not be very high. So it's better to keep your eyes open to other stocks, too. MYTH NO 7: Stocks Trading At 52-Week Low Are Cheap There may be a time in the economic cycle when a blue-chip stock may hit a 52-week low. But the first thing that should come to one's mind is why did the stock hit the 52-week low. There must be something fundamentally wrong with the stock if it has hit a 52-week low, and chances are they may hit a new 52-week low. 52-week low in itself guarantees nothing. If at all one is picking stocks at 52-week lows, they should have a long-term horizon so that when the economic cycle turns, the stock is able to recover."

Student Insurance Plans - What Are They? Posted: 12 Sep 2011 10:12 AM PDT These are meant for students travelling abroad for further studies. Universities abroad mandate that a student must be insured. While some universities (like in Canada and New Zealand) include insurance charges in the tuition fee, others (like in UK and US) accept insurance bought in the home country. The latter, however, must approve the coverage amount. Companies like Tata AIG General Insurance, Bajaj Allianz General Insurance and ICICI Lombard offer insurance, mostly for those between 16 and 35 years of age. Policies offered by the latter are accepted in US universities. Student plans either cover or do not cover the Americas. What is covered? These plans are like a global travel policy. The policy provides accidental death or dismemberment coverage ($10,000 to $50,000) and medical coverage ($50,000 to $250,000, at times even $500,000), depending on the plan. Coverage of dental expenses may be included. Mostly, universities, too, provide coverage for these. Some plans may provide additional coverage for treatment of mental and nervous disorders, including alcoholism and drug abuse. Or, travel-related aspects like baggage and/or passport loss. These policies also cover study interruption (due to ill health, the insurer will reimburse the tuition fee paid for the semester), sponsor protection (if guardian dies, the insurer will pay fees, up to the specified limit), compassionate visit (if you get hospitalised for more than seven days, the insurer pays for return airfare for one parent to visit you and vice versa). Should you buy? Consultants recommend purchase due to the price differential between the policy provided by the universities and the Indian insurance policies, as also the extra benefits. For a sum assured of $100,000 and upwards, a two-year insurance cover from the university costs $600-800 a year. Indian insurance will be between `7,000 and `19,000. -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Axis Mutual Fund - Its Schemes Posted: 12 Sep 2011 09:51 AM PDT   About the Mutual Fund Company: The Sponsor for this mutual fund is "Axis Bank" which is one of the first new private sector banks in India. The bank is promoted jointly by Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and four other PSU Companies. Axis Mutual Fund has launched a number of Mutual Fund schemes ranging from equity schemes, fixed income schemes, Hybrid schemes and Gold Funds. The various equity schemes that were launched by "Axis Mutual Fund" are: Equity Funds: ·                           Axis Equity Fund ·                           Axis Tax Saver Fund ·                           Axis Midcap Fund Fixed Income Funds: ·                           Axis Liquid fund ·                           Axis Treasury Advantage Fund ·                           Axis Short Term Fund Hybrid Funds: ·                           Axis Triple Advantage Fund ·                           Axis Income Saver Fund Gold Fund: ·                           Axis Gold ETF Benefits: ·                           You can protect your money against inflation by investing in Axis Gold ETF. ·                           You can save for your child's education and save enough money for your family by investing in Axis Equity Fund or Axis Triple Advantage Fund or Axis Midcap Fund. ·                           You can supplement your income by investing in "Axis Short Term fund".       -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

ICICI Prudential Mutual Fund Posted: 12 Sep 2011 08:45 AM PDT ICICI Prudential Asset Management Company, in a span of just over eight years, has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with assets under management of Rs.55,191.01Crore (as of July 31, 2008). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 68 cities in the country. Equity Funds Schemes ICICI Prudential Discovery Fund ICICI Prudential Discovery Fund offers an alternative value investing style that helps you truly balance your equity portfolio. It aims to discover stocks at a discount to their fair value. This provides a margin of safety over the long term. It diversifies your existing equity portfolio. An investor, who diversifies across growth and value portfolios, can reduce volatility. ICICI Prudential Power ICICI Prudential Power, is an open-ended equity fund which is focused on capturing market opportunities & seeking out the optimum sectors to invest. It follows a blend of top-down macro research to identify growth sectors and bottom-up fundamental research to identify stocks. ICICI Prudential Dynamic Plan ICICI Prudential Dynamic Plan has the agility to capture upside opportunities across value and growth , large and midcap , index and non-index stocks. On the flip side it also has ability to move into cash as markets get overvalued. ICICI Prudential Emerging S.T.A.R Fund ICICI Prudential Emerging S.T.A.R. Fund is an open ended equity fund that is focused on the mid-cap sector. It follows a fundamentally driven bottom-up approach to investing, identifying stocks that have the potential to grow many fold. The investment philosophy is growth-oriented, and diversified within the specific theme of mid-cap stocks. ICICI Prudential Tax Plan ICICI Prudential Tax Plan is an open-ended equity linked saving scheme (ELSS). It has a lock-in period of 3 years, which ensures that you compulsorily remain invested over this period. This 3 year lock-in gives the fund manager the flexibility to make strategic long term investments in a diversified portfolio comprising a mix of large and medium sized stocks, chosen after careful fundamental research.   ICICI Prudential Growth Plan ICICI Prudential Growth Plan seeks to invest in large, profitable and well known companies, and aims to benefit from the best long term investments that the market has to offer in the large-cap space. Thematic and Sectoral Funds ICICI Prudential Infrastructure Fund ICICI Prudential Infrastructure Fund is an open-ended equity fund focused on capturing the opportunity presented by the long term growth potential of the Indian Infrastructure sector. It invests across infrastructure sectors such as Cement, Power, Telecom, Oil and Gas, Construction, Banking etc. ICICI Prudential Services Industries Fund ICICI Prudential Services Industries Fund seeks to optimise the risk adjusted return by a mix of top-down macro and bottom-up micro research to identify stocks in the services sector. It is a multi-sector fund and therefore has a much lesser concentration risk than a typical sector fund. ICICI Prudential FMCG Fund ICICI Prudential FMCG Fund is an open-ended equity fund, that predominantly invests in companies with a retail and consumption focus. The portfolio is made up of fewer number of scrips, chosen to reflect the prospects of the FMCG sector. Within the broad definition of the sector, scrips are held across sub sectors like food, retail distribution, apparel, and consumables. ICICI Prudential Technology Fund ICICI Prudential Technology Fund is an open-ended equity fund that predominantly invests in knowledge sectors like IT and IT Enabled Services, Media, Telecom etc. However, in the interest of retaining diversification across companies in the sector, the fund retains a 10% cap on a single company, as is the case for diversified equity funds. Hybrid Funds ICICI Prudential Child Care Plan ICICI Prudential Child Care Plan is an investment instrument specially designed to help you give your child a head start in life. It offers two options - Gift (Suitable if your child is in age group of 1-13 years.) and Study (Suitable if your child is in age group of 13-17 years.), for the differing needs of parents with children in differing age groups. ICICI Prudential Balanced Fund ICICI Prudential Balanced Fund takes care of this asset allocation by investing in equity for capital appreciation and debt for stable returns. It focuses on reducing volatility of returns by increasing / decreasing equity exposure based on the market outlook and using a core debt portfolio to do the rebalancing. ICICI Prudential Income Multiplier Fund ICICI Prudential Income Multiplier Fund predominantly invests in a debt portfolio that is conservatively managed with a focus on generating regular income. The objective is to keep interest rate risks and credit risks low. The debt component is about 70% of the portfolio, and can be upped to 100% should there be a need. ICICI Prudential Monthly Income Plan ICICI Prudential Monthly Income Plan is a conservatively managed fund that invests predominantly in debt securities. It invests with the view of generating regular income from debt securities. Debt Funds ICICI Prudential Gilt Fund (Investment Plan) ICICI Prudential Gilt Fund (Investment Plan) is a pure debt fund that invests only in Government securities. To cater to a long term horizon the fund invests in securities of longer tenure. This helps in earning the higher yield associated with longer term investments. ICICI Prudential Income Plan ICICI Prudential Income Plan is a debt fund that invests entirely in both short and long term debt securities of the Government and corporate sector. The objective is to earn a rate of interest that commensurates with long term deployment in debt markets that generates income for investors. ICICI Prudential Flexible Income Plan ICICI Prudential Flexible Income Plan is a debt fund that invests its funds entirely in both short and long term debt securities of the government and the corporate sector. The objective is to earn returns in the form of interest income and capital gains, which commensurate with long term deployment in debt markets. ICICI Prudential Long Term Floating Rate Plan ICICI Prudential Long Term Floating Rate Plan is a debt fund that invests predominantly in debt securities with a floating rate of interest. The majority of floating rate instruments in the portfolio are benchmarked to the 1 year INBNK rate and the rest are benchmarked to a short term rate like the Mibor with resets taking place at 3 month / 6 month intervals. ICICI Prudential Blended Plan ICICI Prudential Blended Fund is a blend of equity arbitrage opportunities and short term debt instruments and is open for subscription only for a limited period each month. It features two options: Blended Plan A, which maintains at least 51% exposure to equity and equity related securities, that can be hiked upto 75%. The fund aims to hedge 50% out of the 51% equity exposure and use the 1% unhedged portion to participate in IPOs to a limited extent. The 51% exposure to equity classifies Plan A as an equity fund and therefore provides Tax Free dividends without being subject to dividend distribution tax. Blended Plan B, invests predominantly in short term debt, limiting its arbitrage exposure to less than 50%. In both cases, the portfolio component not deployed in arbitrage is held in short term debt instruments. ICICI Prudential Short Term Plan The ICICI Prudential Short Term Plan invests in a basket of debt securities, which have a shorter term to maturity. The portfolio predominantly comprises of short term instruments issued by the corporate sector and takes view-based limited G-Sec exposure. ICICI Prudential Gilt Treasury Plan ICICI Prudential Gilt Treasury Plan is a pure debt fund that invests in short tenure Government securities (G-Secs). ICICI Prudential Floating Rate Plan ICICI Prudential Floating Rate Plan is a debt fund that invests predominantly in debt securities with a floating rate of interest. The focus is on instruments whose rates are benchmarked to short term benchmarks like the Mibor, so that their response to changes in interest rates is rapid. ICICI Prudential Liquid Plan ICICI Prudential Liquid Plan's objective is to enable idle cash to be deployed for very short periods of time. Therefore it seeks to invest only in very liquid, short term instruments, of the highest credit quality. -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

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