Friday, September 5, 2014

ICICI Prudential Constant Maturity Gilt Fund

 

After the continued success of our close ended equity fund launches, it gives me immense pleasure to announce the launch of ICICI Prudential Constant Maturity Gilt Fund - a gilt fund that will aims to invest in the 10 year G-sec segment. The NFO period will run from 25th August to 1st September.

In the current scenario, where G-sec yields are at peak, there is a strong case for investing in a Gilt Fund:

There has been significant improvement in CAD over the past few quarters and India's BoP has swung back into surplus during the October- December 2013 quarter - supported by strong flows in debt and equity.

Fiscal consolidation

has received priority from the new government and is set to achieve 3% Fiscal Deficit target by FY17.

Inflation is expected to ease off further in the near future.

Real interest rates are positive

after long time, which can lead to increase in savings rate; this will provide liquidity in the system which will be positive for bond yields.

In the past, whenever 10 Year G-Sec yields were above its long term average, we have seen steep fall in the yields in the next 18 months.

Current Situation is similar to 2001; post which there was a sharp fall in G-sec yields - The 10 Year G-sec Benchmark decreased from 11.5% levels to 6% during the period 2001-04.

Presenting ICICI Prudential Constant Maturity Gilt Fund

A gilt fund that aims to provide reasonable returns by:

Investing in government securities.

Maintaining the average maturity of the scheme close to 10 years.

Investing in securities with residual maturity ranging between 8 to 12 years.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

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You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

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