ICICI Prudential Asset Management Company Limited came out with a New Fund Offer (NFO) of ICICI Prudential Retirement Fund on 7th February 2019 and it is open till 21st February 2019.

This is a Retirement Solution Oriented Fund and is open-ended.

The Minimum amount to be invested is ₹ 5000/- (plus in multiples of Re.1 thereafter).

The lock in Period is of 5 Years or Retirement (whichever is earlier).

The Fund Managers of this fund are Mrinal Singh & Ashwin Jain (for managing equity) and Manish Banthia & Anuj Tagra for managing debt.

 

NFO Name

ICICI Prudential Retirement Fund
NFO Launch Date 7th February 2019
Last Date for Application 21st February 2019
Minimum Investment Amount ₹ 5000/- (plus in multiples of Re.1 thereafter)
Fund Type Retirement Solution Oriented Fund
Nature Open-ended
Fund Managers Equity portion – Mrinal Singh & Ashwin Jain

Debt portion- Manish Banthia & Anuj Tagra

Lock in Period 5 Years or Retirement (whichever is earlier)

Most of us start looking at retirement only when we reach closer to our retirement age.

This is where you miss out on saving the required funds needed for your retirement. In fact, you should start investing early, as each year of earning should contribute to each year of your retirement.

 Invest in ICICI Prudential Retirement Fund

If you want to invest in this NFO, the following steps must be followed.

  • Log in to your Groww account. If you are a new user,  sign up first– it operates online and takes 2-3 working days
  • Decide the amount you would like to invest in ICICI Prudential Retirement Fund
  • Email Groww support on support@groww.in with a request or call/Whatsapp on 9108800604

When investing in this NFO, an investor must remember that it is an open-ended mutual fund.

Also, the investor needs to invest at least ₹ 5000 in it.

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Plans Available For ICICI Prudential Retirement Fund

The fund aims to provide capital appreciation and income to investors which will help them to achieve their retirement goals.

On the basis of investor risk appetite and investment horizon, the investor can pick invest in any of the 4 investment plans available.

Pure Equity Plan

  • The plan is suitable for investors between 25 to 45 years of age
  • This plan aims to generate long term capital appreciation and wealth creation
  • This is an equity scheme that mainly invests in equity and equity related securities
  • The risk involved is Moderately High
Asset Type Asset Allocation
  Minimum Maximum
Equity and Equity Related Instruments 80 % 100%
Debt And Money Market 0 % 20 %

Hybrid – Aggressive Plan

  • The plan is suitable for investors between 46 to 50 years of age
  • This plan aims to generate long term wealth creation
  • A hybrid scheme mainly invests in equity and equity-related securities and also invests in debt and other securities
  • The risk involved is moderately high
Asset Type Asset Allocation
  Minimum Maximum
Equity and Equity Related Instruments 65 % 100%
Debt And Money Market 0 % 35 %
Gold/ Gold ETF 0 % 35 %

Hybrid – Conservative Plan

  • The plan is suitable for investors between 51 to 56 years of age
  • This plan aims to generate medium to long term regular income
  • A hybrid scheme that aims to generate regular income through investments mainly in debt and money market instruments and generate long term capital appreciation by investing a part of their portfolio in equity
  • The risk involved is moderately high

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Asset Type Asset Allocation
  Minimum Maximum
Equity and Equity Related Instruments 5 % 30 %
Debt And Money Market 70 % 95 %

Pure Debt Plan

  • The plan is suitable for investors between 56 to 60 years of age
  • This scheme mainly invests in debt and money market instruments with a view to maximizing optimum balance of yield, liquidity, and safety
  • The risk involved is relatively lower
Asset Type Asset Allocation
  Minimum Maximum
Debt And Money Market 0 % 100 %

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Why Should An Investor Invest in ICICI Prudential Retirement Fund?

There has been a huge change in our lifestyle and our needs. Our outlook towards retirement today is completely different from what our parents or grandparents had for the following reasons:

1.Shorter working life, longer life expectancy – With changing life goals, people now want to retire earlier than before

2. Lifestyle inflation and an increase in medical costs – Luxuries of yesterday have become necessities of today because of rising inflation and higher medical costs

3. Changing outlook towards retirement – Leading a simple life or going on a pilgrimage are not the only retirement dreams people have. People now want to spend time following their passion or travel around the world after their retirement

One needs a financial plan that can not only help in maintaining their current lifestyle, but also help in leading a happy and secure retired life.

 Options Available for Investment 

  • ICICI Prudential Retirement Fund (Growth Option)
  • ICICI Prudential Retirement Fund (Dividend Option)
  • ICICI Prudential Retirement Fund (Direct Plan- Growth Option)
  • ICICI Prudential Retirement Fund (Direct Plan- Dividend Option)

ICICI Prudential Retirement Fund opened for subscription on 7th February 2019 and will stay open till 21st February 2019. This is an open-ended fund which will have a lock-in period of 5 years or retirement (whichever is earlier).

 Benefits Of Investing In ICICI Prudential Retirement Fund

  • Four different investment options available to select from as per your age and risk appetite
  • The scheme has a lock-in period of 5 years (or retirement, whichever is earlier). This will stop us impulsive withdrawals and allow fund managers to perform over cycles
  • Within the lock-in period, the fund allows unlimited switches between plans without any exit load. Active/Auto switch facility is also available

Fund Managers

The four fund managers for ICICI Prudential Retirement Fund are as follows:

Mrinal Singh

Mr. Mrinal Singh is the Deputy Chief Investment Officer of Equity at ICICI Prudential Asset Management Company Limited for the past 3 years 3 months and was previously Senior Fund Manager from June 2008 till November 2015.

He has done PGDBM in Finance from S. P Jain Institute of Management and Research.

Ashwin Jain

Mr. Ashwin Jain has been an Investment Analyst at ICICI Prudential Asset Management Company Limited since March 2010 and became the Equity Portfolio Manager at ICICI Prudential Asset Management Company Limited in September 2014.

Before that he used to work as Senior Analyst at Merrill Lynch. He has done PGDBM in Finance and Strategy from IIM Bangalore.

Manish Banthia

Mr. Manish Banthia has been a Fund Manager in ICICI Prudential Asset Management Company Limited for the past 13 years.

Mr. Banthia serves as a fund manager for various funds at ICICI Prudential and is presently the Senior Fund Manager in Fixed Income at ICICI Prudential Asset Management Company Limited.

Before that he used to work as Deputy Manager in Corporate Finance at Aditya Birla Nuvo Ltd. He has done MBA in Finance from IIFT and is also a Chartered Accountant.

He completed his graduation from St Xavier’s College, Kolkata.

Anuj Tagra

Mr. Anuj Tagra serves as the fund manager for fixed income at ICICI Prudential Asset Management Company Limited.

Mr. Tagra is associated with ICICI Prudential Asset Management Company Limited for the past 6 years. Before that he used to work as a Rates Trader at Union Bank of India.

He has done his MBA from Narsee Monjee Institute of Management Studies.

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Comparison of Retirement Focused Schemes 

Features Conventional Pension Product Traditional Investment Avenue Retirement Solution Oriented Fund
The benefit of Asset Allocation Present Not Present Present
Active Fund Management Relatively Low Relatively Low Relatively High
A regular commitment of contribution Yes Yes Optional
Liquidity Low Low Medium
Lock-in Cannot withdraw prior to 60 years of age 15 Years 5 Years or 60 years of age, whichever is earlier
Compulsory Annuity Yes No Option Available Thorugh SWP

Suggested Way Of Investing By The Fund House

Let’s take three examples with respect to three age groups

Target: Rs. 1 Crore at age 60

Age Group: 25 to 35 years

Start investing Rs. 3,000 per month for 30 years from. The asset allocation suggested for this age group is 100 % equity.

Age Group: 35 to 45 years

Start investing Rs. 10,000 per month for 20 years. The asset allocation suggested for this age group is 60 % equity and 40% debt.

Age Group: 45 to 55 years

Start investing Rs. 43,000 per month for 10 years from 50 years of age. The asset allocation suggested for this age group is 100% debt.

Conclusion

This fund offers four different plans for investment, which is apt for investors with varying risk appetites.

Investors willing to invest in this fund should understand the investment plans available and accordingly invest in the fund as per their risk appetite.

Also, while investing, it should be kept in mind that this is a new fund offer and does not have a track record. So, if someone is not comfortable in investing in an NFO then he/she can always look to invest in a mutual fund with a good track record.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww