ICICI Prudential Flexible Income Plan is a great product if you need safety and I am talking about real safety where there no fear of losing money. At same time, you need full access so that you use it anytime. But also want to earn good returns on you money. Then, most optimum answer is Ultra Short Term funds. Such funds invest in short term corporate debt papers, CDs, money market and G-Secs etc. of ~1 year maturity so dont even have significant interest risk.

Launched in September 2002, ICICI Prudential Flexible Income Plan has been a consistent performer and investors have entrusted it with Rs. 20k+ cr. The fund has given 9%+ (~1% higher than Fixed Deposits (FD) on YoY basis) with flexibility of anytime withdrawal.

How we arrived at this fund?

  • Renowned Fund House – ICICI Prudential is largest fund house as we write this – check
  • Long history record – Fund is operation since last 14 years – check
  • Size of the fund – Fund is neither too small nor too big, 20k+ Crores – check
  • Consistent performance – For any 5 year period, fund has performed better than others – check

Other checklist

  • Ranking – Rated 3 star by VRO, ranked 3 by CRISIL in diversified equity funds
  • Fund Manager -Rahul Goswami (CIO IPRU) / Rohan Maru
  • Quality of the portfolio [50% Money Market (Ultra Safe) and 30% AAA/ SOV]
  • Exit load – Nil

What are the risk?

  • Debt fund risks are linked to market interest rate and credit rating of the borrower
  • Ultra short term fund obviously have very short term (<1) hence very low interest rate risk
  • Also with 80%+ ultra safe quality of portfolio limit risk for default

Who should buy ICICI Prudential Flexible Income Plan?

  • People who are looking to park your money till you don’t decide whwt to do with it without undue risk
  • People who want higher than FD returns and withour losing money