ICICI Prudential MF launches ICICI Prudential Booster Systematic Transfer Plan

ICICI Prudential Mutual Fund launches the first feature of industry known as ICICI Prudential Booster Systematic Transfer Plan (STP). The plan aims to seize the market opportunities by dividing the corpus as & when an opportunity arises. Booster STP is an enhanced systematic transfer plan wherein, unit-holders can transfer variable amounts as per the market conditions. The investment amount varies in the range of 0.1x to 5x of the base installment. The multiplier (0.1x to 5x) came on the basis of the time-tested Equity Valuation Index.  

For instance, base installment amount is Rs 2,00,000, then investment may vary between Rs 20,000 and Rs 10,00,000. A small amount is invested when markets are expensive and on the contrary, large amounts are invested when markets are cheap, via enhanced STP. Unit-holders will be required to give a base installment amount, which is intended to transfer to the target scheme. The variable amounts or actual amounts transferred to the target scheme are based on Equity Valuation Index.  

Speaking on the launch of the product, Chintan Haria, Head Product Development & Strategy, ICICI Prudential AMC said, “Booster STP leverages rupee cost averaging and value averaging by staggering investment through dynamic installment & dynamic tenure. Market valuation based on which the installment amount is decided is based on Equity Value Index.”  

Equity Valuation Index is extracted by assigning equal weights to price-to-earnings (PE), price-to-book (PB), (G-Sec x PE) and market-cap to gross domestic product or such other factors as may be determined by the AMC from time to time. The characteristics of the enhanced systematic plan are based on 3s namely, seek the right opportunity, seize the opportunity and size the opportunity.