Series H 36 months ICICI Prudential S.M.A.R.T plan

November 30, 2008 by Ganesh · Leave a Comment

ICICI Prudential S.M.A.R.T Series H 36 months IP (G),IP (D), RP (G). RP (D)

icici prudential mutual fund fmps ICICI Prudential S.M.A.R.T Series H is a complicated debt instrument that invests in equity derivatives

In short, ICICI Pru S.M.A.R.T are not the traditional FMPs that seek to invest mostly in Govt securities , and are far more complex debt instruments

ICICI Pru S.M.A.R.T Series H comes in 4 variants

ICICI Pru S.M.A.R.T Series H 36 months RP(g)- the growth option for retail participants
ICICI Pru S.M.A.R.T 36 Months Series H RP(d)- the dividend option for retail participants
ICICI Pru S.M.A.R.T 36 Months Series H IP(d)- the dividend option for institutional participants
ICICI Pru S.M.A.R.T 15 Months Series H IP(G)- the growth option for institutional participants

As the name indicates,this S.M.A.R.T Series E fixed maturity plan from ICICI Prudential Mutual Fund has a maturity period of 36 Months

This ICICI Pru scheme has a opening date of 25/10/2008 and a closing date of 8/12/2008

Points In favour of investing in ICICI Prudential S.M.A.R.T Series H 36 months FMP

If you are a financial wiz and you understand complex equity derivates and think the equty markets cannot go down further, investing in ICICI Pru Series H 36 months may not be bad

Points against investing in ICICI Pru S.M.A.R.T Series H 36 months plan

The ICICI Pru S.M.A.R.T Series H 36 months plan is based on complex equity derivatives. If you think derivatives are something you learned in math school, this ICICI Pru S.M.A.R.T plan is not for you.
The entry loads and exit loads for the ICICI Pru S.M.A.R.T Series H 36 Mth schemes are quite steep at 2.25% and 2% respectively for retail investors and has an entry and exit load of 0 and 3% for institutional investors
Retail investors who do not understand the complicated financial instruments used in schemes such as the ICICI S.M.A.R.T Series H 36 Months scheme are advised to be careful