Pru-ICICI launches a Monthly Income Plan (MIP)

After Kothari Pioneer and Reliance Asset Management Companies, Prudential-ICICI AMC has launched its monthly income plan. The fund, which opened on September 28, will close for initial subscription on October 14. The open-end MIP does not assure returns and will invest 85 per cent of its assets in debt instruments while restricting exposure to equities at 15 per cent. The scheme offers monthly, quarterly and half-yearly dividend options while investors can also opt for cumulative option with systematic withdrawal plan. The minimum investment in the all the options is Rs 25,000. While there is no entry load, the fund will charge an exit load of 0.5 per cent, if money is redeemed within six months of investment.

This is the second fund from Prudential-ICICI AMC in the current calendar year. The AMC had launched a technology fund earlier this year, which mobilised an impressive Rs 500 crore. Prudential-ICICI is the largest private sector mutual fund in the Indian fund industry with 11 funds, including two closed-end funds and has an asset base of around Rs 4,000 crore.