Prudential ICICI AMC offers new plans, investment strategies

New Delhi, Nov 10 (UNI) Offering new funds for varied investors, Prudential ICICI Asset Management Company (AMC) today announced the launch of the Prudential ICICI Equity and Derivatives Fund aiming to generate low volatility returns by investing in a mix of cash equities and debt markets.

The fund, available in two plan options Income Optimiser Plan and Wealth Optimiser Plan, would use equity equity derivative startegies to cater to differing risk return profiles of investors.

While the Income Optimiser Plan targets to achieve stable 'debt (+)' income at low stability, Wealth Optimiser Plan aims to achieve wealth creation at equity risk.

''In view of tax advantages going away from few traditional avenues, equity and derivatives fund offers more than just basic risk return proposition,'' AMC Chief Investment Officer Nilesh Shah told reporters here.

A relatively conservative plan, Income Optimiser Plan will reduce the downside risks by capping the cash equity exposure of the fund at five per cent by using aribitrage and other hedged derivative strategies within the equity component of the portfolio and investing the remainder of the portfolio in short term debt.

Similarly, Wealth Optimiser Plan aims to achieve capital appreciation by investing in cash equity by 65-85 per cent while limiting the downside risks by hedging the portfolio based on the market conditions.

The fund will also invest in other derivative startegies to generate low volatility returns and is also a relatively less conservative option which has a comparatively greater exposure to equity.

Some of the strategies like index arbitrage, alpha generation and the likes are absolutely unique to this product as against other products present in the category.

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