ICICI Prudential Mutual Fund launches ICICI Prudential Booster Systematic Transfer Plan

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Booster Systematic Transfer Plan (Booster STP). Booster STP is an enhanced systematic transfer plan wherein unit holders, based on market valuations, can opt to transfer variable amounts from one source scheme to a designated target scheme at defined intervals. The unit holder is required to provide a Base Installment Amount that is intended to be transferred to the target scheme.

Booster STP can vary installment amount from 0.1X to 5X of base installment amount based on Equity Valuation Index. Through this enhanced STP, a very small amount of base installment is invested when equity valuation is considered expensive. Conversely, when the valuation is considered cheap, the investment will be of a relatively higher value. For example, if the base installment amount is say Rs.1,00,000 then it invests anywhere between Rs.10,000 to Rs. 5,00,000 (0.1x to 5x) based on market valuation. The multiplier (0.1x to 5x) is arrived at on the basis of Equity Valuation Index.

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 and dynamic tenure. Market valuation based on which the installment amount is decided is based on Equity Valuation Index.”

Through this feature, an investor can aim for proper sizing and can aim to take advantage of the right opportunity that present itself in a volatile market. As a result, this feature can be considered as a helpful for those investors with lump-sum money to invest and looking for optimal investment approach to invest for long term.