Prudential ICICI AMC Launches Prudential ICICI Equity and Derivatives Fund

Released on = February 9, 2007, 4:41 am

Press Release Author = Mitu Samar

Industry = Financial

Press Release Summary = Prudential ICICI Asset Management Company (AMC) announced
the launch of the Prudential ICICI Equity and Derivatives Fund. Its open-ended
scheme aims to provide better returns than typical debt instruments and lower
volatility in comparison to equity.

Press Release Body = ~ An open-ended equity fund investing in cash equities, equity
derivatives & debt market instruments

~ Available under two Plans based on varied risk return profiles of investors

~ New Fund Offer from November 8, 2006 - December 7, 2006


November 8, 2006: Prudential ICICI Asset Management Company (AMC) today announced
the launch of the Prudential ICICI Equity and Derivatives Fund. It is an open-ended
equity scheme, which aims to generate low volatility returns by investing in a
judicious mix of cash equities, equity derivatives and debt markets. The fund aims
to provide better returns than typical debt instruments and lower volatility in
comparison to equity.

Prudential ICICI Equity & Derivatives Fund offers two plan options, which use equity
derivative strategies to cater to differing risk return profiles of investors:

 Income Optimizer Plan: AIMS TO ACHIEVE STABLE 'DEBT(+)' INCOME AT LOW
VOLATILITY

A relatively conservative plan, which reduces the downside risks by capping the cash
equity exposure of the fund at 5%. The Plan seeks to generate stable and low
volatility returns by using arbitrage and other hedged derivative strategies within
the equity component of the portfolio and investing the remainder of the portfolio
in short term debt.

 Wealth Optimiser Plan: AIMS TO ACHIEVE WEALTH CREATION AT 'EQUITY (-)' RISK.
Seeks to achieve capital appreciation by predominantly investing in cash equity (65%
-80%), while limiting the downside risks by hedging the portfolio based on the
market conditions. The fund will also invest in other derivative strategies to
generate low volatility returns. It is a relatively less conservative option and has
a comparatively greater exposure to equity.

Investment Strategy

Prudential ICICI Equity and Derivatives Fund will use hedging and arbitrage
derivative strategies to control the fund's volatility and reduce the downside
risks. Some of the strategies like index arbitrage, alpha generation and the likes
are absolutely unique to this product as against other products present in the
category.

Thus, the fund aims to reconcile the desire of an investor to earn higher returns
with the need to limit potential downside. Being an equity scheme it also enjoys the
tax advantage, which acts as an added highlight of the product.



Speaking at the launch of its new fund, Mr. Pankaj Razdan, Managing Director,
Prudential ICICI Asset Management Company Ltd said, "Striking a balance between risk
and return has been an endeavour of a common Indian investor since ages. Being a
customer outcome oriented organization, Prudential ICICI AMC aims to offer products
that meet investors' requirements, through a perfect mlange of experience,
expertise and edge."

He further added, "In view of tax advantages going away from few traditional
avenues, Equity and Derivatives fund offers more than just basic risk return
proposition. "

About Prudential ICICI Asset Management Company

Prudential ICICI Asset Management Company Ltd, the joint venture of ICICI Bank and
Prudential Plc, enjoys the strong parentage of ICICI Bank, a well-known and trusted
name in financial services in India and Prudential Plc, one of UK's largest players
in the insurance and fund management sectors. Prudential ICICI Asset Management
Company, in a span of just over eight years, has forged a position of pre-eminence
in the Indian Mutual Fund industry as one of the largest asset management companies
in the country with assets under management of Rs. 32666 crores (as of October 31,
2006). The Company manages a comprehensive range of schemes to meet the varying
investment needs of its investors spread over 70 cities in the country.




Web Site = http://www.pruicici.com

Contact Details = Mitu Samar
Sr. Manager - Corporate Communications
Prudential ICICI AMC
Tel: (D) 022-6638 4310 (M) 9820061934
Email: mitu_samar@pruicici.com

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