The scheme will serve different goals by following an asset allocation which suits the time horizon of the goal.
ICICI Prudential Mutual Fund has filed an offer document with SEBI to launch a goal based fund of fund called ICICI Prudential Lakshya Fund.
The scheme aims to provide a simple investment solution to retail investors by serving their different goals like saving for children, education, or saving for any medium to long term personal goals and retirement planning.
The scheme comes with 6 different plans namely- 3 year plan cycle, 6 year plan cycle, 9 year plan cycle, 12 year plan cycle, 15 year plan cycle and 18 year plan cycle. The asset allocation of the scheme will depend upon the time horizon of the investor. Depending upon the time horizon the investor can chose from the available plan cycle. The scheme will reduce its exposure to risky asset classes as it ends the plan cycle from the start of the plan.
The schemes will invest in funds which meet the objective criteria and the asset allocation pattern of the plans of ICICI Prudential Lakshya Fund.
Investors will have the option to either to redeem or transfer funds to other plan under the same scheme or to ICICI Prudential Liquid Plan.
Investment strategy
As per the offer document, the fund manager will have the flexibility to construct the portfolio depending on the valuations prevailing in the market at the time of launch of plan. If the valuations are cheap the fund manager will invest the fund within 3 months of commencement of the scheme and if valuations are high then, will invest over a 6 months period for a three year plan.For other plans the investments shall be done within a one year period.
Scheme benchmark
|
Period Benchmark |
Benchmark |
|
From date of allotment of the plan under the scheme to 4 years prior to the end of cycle to the plan |
S&P CNX Nifty |
|
Period between 3 to 4 years before the end of cycle to the plan under the Scheme |
Crisil Balanced Fund Index |
|
Period between 2 years upto the end of cycle to the plan under the scheme |
Crisil MIP Blended Index |
The minimum application
amount is Rs. 5,000 and in multiple of Rs. 1,000 thereafter.
The exit load is 2% if redeemed/switched before 1year and 1% if redeemed or switched before 2 years.
