25 Apr 2007
ICICI Prudential launches Micro Systematic Investment Plan
Minimum Investment Amount - Rs. 50 per month
Mumbai, April 25th, 2007: India's leading Asset Management Company ICICI Prudential AMC launched the ICICI Prudential Micro Systematic Investment Plan (MSIP) with a minimum investment of just Rs. 50 per month. In India, 600 million people do not have access to formal finance. The biggest challenge is to enhance financial inclusion to the underbanked and unserved segment. This facility provides an opportunity to invest small amounts periodically and build a corpus of savings over the long term through a disciplined & systematic approach. It gives a choice of investments to this segment wherein they could also choose to participate in debt and capital markets.
Leveraging ICICI Bank's network of microfinance channels, ICICI Prudential AMC has signed an agreement with KAS Foundation, a MicroFinance Institution.
Key Features:
- Minimum Investment Amount - Rs. 50 & in multiples thereof
- Minimum Redemption Amount - Rs. 500
- Entry Load - 2.25%
- Exit Load - Variable as per the amount invested, the duration of investment and the scheme
- Only growth option available
- No Lock in period
Speaking at the conference, Mr. Pankaj Razdan - Managing Director, ICICI Prudential AMC said, "Micros SIP is a facility with three prime features. It makes participation in capital markets affordable for low income households, enables investment through discipline and most importantly builds a corpus for investors to meet their long term needs. The Indian economy is growing rapidly and in order to ensure 'inclusive growth' facilities like Micro SIP are of utmost importance. It helps opportunities to reach all strata of society and aids us in realizing our larger goal of making every Indian participate in India's growth story."
Speaking on the occasion, Mr. Nachiket Mor, Deputy Managing Director, ICICI Bank said, "We are delighted to offer the ICICI Prudential Micro SIP plan to our microfinance clients. Our endeavor is to address financial services needs of the rural population by offering them easy access to the entire range of financial services. Our approach has been to effectively leverage existing products and channels and innovate to address unfulfilled needs. This is another step in that direction."
Mr. T. R. Ramanathan, General Manager, KAS Foundation said, "We believe that is important to provide the entire range of financial services to our clients. There is a strong demand for a savings product besides microcredit, which is provided. Through this micro SIP, our clients can create a pool of savings in a disciplined and systematic manner with an amount as low as Rs. 50 per month."
About KAS Foundation:
KAS Foundation is a microfinance institution operating in the states of Orissa and Chattisgarh, India. It was founded in August 2003 by Mr Kathiresan Sundaram and has around 12000 Self Help Groups (SHGs) (as of August 2005), spread over 24 districts, out of which 4200 have been linked to the banks. KAS aims to expand its outreach to at least 20000 SHGs and Joint Liability Groups (JLGs) (currently have around 100 JLGs) each in these regions by 2007. Prof. Sendhil Mullainathan (Harvard) is leading two research projects with the objective of examining the effect of varying repayment schedules at the KAS Foundation in collaboration with CMF.
About ICICI Bank:
ICICI Bank is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of Rs. 2,958.32 billion as on December 31, 2006. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 930 branches and extension counters, 3300 ATMs, call centers and internet banking to ensure that customers have access to its services at all times.
About ICICI Prudential AMC:
ICICI Prudential Asset Management Company enjoys the strong parentage of ICICI Bank, India's largest private sector bank and Prudential plc, one of UK's largest players in the financial services sector. ICICI Prudential 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. 37,906.24 crores (as of March 31, 2007). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 80 cities in the country.
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Statutory Details: ICICI Prudential Mutual Fund (erstwhile Prudential ICICI Mutual Fund) (the Fund) was set up as a Trust sponsored by Prudential plc (through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) and ICICI Bank Ltd. ICICI Prudential Trust Limited (erstwhile Prudential ICICI Trust Limited) (Trust company) is the Trustee to the Fund and ICICI Prudential Asset Management Company Ltd. (erstwhile Prudential ICICI Asset Management Company Limited) (AMC) is the Investment Manager to the Fund. ICICI Bank Ltd (ICICI Bank) and Prudential Plc (acting through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) are the promoters of the AMC and the Trust Company. ICICI Bank currently holds 51% stake in both the companies and the balance 49% stake in both the companies is held by Prudential plc (acting through its wholly owned subsidiary namely Prudential Holdings Corporation Ltd). Prudential Plc (acting through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) transferred 6% of its shareholding in both the companies to ICICI Bank w.e.f 26th August 2005. Subsequently in accordance with the approval granted by the Board of Directors and the shareholders of the AMC and the Trust Company the name of the AMC has been changed to ICICI Prudential Asset Management Company Limited and the name of the Trust Company has been changed to ICICI Prudential Trust Limited. SEBI has vide its letter no IMD/PM/84968/07 dated January 23, 2007 conveyed its no objection to the said change of names of the AMC & the Trust company. The said change of names has also been approved by the Registrar of Companies, NCT of Delhi & Haryana, Ministry of Company Affairs, Govt of India. The Board of Directors of the Trust company have at their meeting held on 20th February 2007 accorded approval for the change of name of the Mutual Fund to ICICI Prudential Mutual Fund as well as of the various schemes /plans/options there under. SEBI has vide its Letter Nos IMD/PM/90168/07 & IMD/PM/90170/07 dated 2nd April 2007 accorded approval for the same. Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Schemes will be achieved. As with any securities investment, the NAV of the Units issued under the Schemes can go up or down, depending on the factors and forces affecting the capital markets. Past performance of the Sponsors, AMC/Fund does not indicate the future performance of the Schemes of the Fund. The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes beyond the contribution of an amount of Rs.22.2 lacs, collectively made by them towards setting up the Fund and such other accretions and additions to the corpus set up by the Sponsors. Please read the Offer Document(s) /Addendum(s) of the Schemes carefully before investing.