Product Snapshot

 
Fund Name
IDBI PRUDENCE FUND
 
NatureAn open-ended balanced scheme
Investment ObjectiveThe investment objective of the Scheme would be to generate opportunities for capital appreciation along with income by investing in a diversified basket of equity and equity related instruments, debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realized.
Asset AllocationThe asset allocation pattern for the scheme is detailed in the table below:
Instrument Indicative Allocation
(% of total assets)
Risk Profile
  Minimum Maximum  
Equity and equity related instruments 35% 60% High
Equity Arbitrage Exposure 5% 10% Low to Medium
Debt instruments (including fixed/floating rate debt instruments and securitized debt) and Money Market instruments 30% 60% Low to Medium

Arbitrage will have fully set-off position with Zero Net Market Exposure. To the extent of arbitrage allocations, the Scheme would hold spot market positions only for the purpose of arbitrage opportunities and not to benefit from any upside potential that stocks may provide in the present or in future. If the suitable arbitrage opportunities are not available in the opinion of the Fund Manager, the Scheme may invest arbitrage allocation (5%-10%) in debt and money market instruments. This is subject to a 30 days’ rebalancing period. derivatives shall be for hedging, portfolio balancing and such other purposes as maybe permitted from time to time. The Scheme does not propose to invest in ADRs/GDRs and foreign securities. Investment in Securitized Debt not to exceed 10% of the net assets of the Scheme.
For more details on Asset Allocation please refer Scheme Information Document(SID)
Fund ManagerMr. V. Balasubramanian (Equity portion) and Raju Sharma (Debt Portion)
Benchmark50% S&P BSE 500 Index + 50% CRISIL Composite Bond Fund Index
Face ValueRs. 10/-  per unit.
Entry LoadNot Applicable
Exit Load1% for exit within 12 months from the date of allotment. No load on exit after the aforementioned period.
Taxation
As per the extant income tax provisions for a Balanced Fund to be recognized as an equity oriented scheme, the investible funds should be invested by way of equity shares in domestic companies to the extent of more than sixty-five per cent of the total proceeds of such fund.
Provided that the percentage of equity shareholding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures.
The Tax rate applicable to equity schemes will be as below:
Equity Scheme Resident Investor** Mutual Fund**
Dividend Distribution Tax NIL NIL
Capital Gain    
Long Term NIL NIL
Short Term (units held for less than 12 months) 15%
(plus applicable surcharge & cess)
NIL
Unit holders of the Scheme will be charged securities transaction tax (STT) @ applicable rate on value of redemption of units.
Debt Scheme Resident Investor** Mutual Fund**
Dividend Distribution Tax NIL Individual/HUF - 25% of dividend (plus applicable surcharge & cess) Others- 30% of dividend (plus applicable surcharge & cess)
Capital Gain    
Long Term 20% with indexation (plus applicable surcharge & cess) NIL
Short Term (units held for less than 36 months) Rates applicable to Unitholders as per their income slabs (plus applicable surcharge & cess) NIL
** For further details on taxation please refer to the Section on Taxation in the SAI and independently refer to your tax advisor.
Plans & Options
The Scheme offers following plans for investment :-
  1. Regular Plan
  2. Direct Plan

Within each Plan there are two Options:
  1. Dividend Option *
  2. Growth Option

The Dividend Option under both the Plans offers following modes of Dividend:
  1. Dividend Payout
  2. Dividend Reinvestment and Dividend Sweep


*All dividend distribution is subject to the availabilty of distributable surplus on the record date and will be at the discretion if IDBI Asset Management Ltd. and IDBI MF Trustee Company Ltd.
Minimum InvestmentRs. 5000 and in multiples of Re. 1 thereafter.
Additional  PurchaseRs.1000 and in multiples of Re. 1 thereafter
Systematic Investment Plan (SIP)Rs. 1000 per month for a minimum period of 6 months.
- Rs. 500 per month for a minimum period of 12 months
- Rs.1500 per quarter for minimum period of 4 quarters.
Investments above minimum amount mentioned above, shall be made in multiples of Re. 1 for all SIP in both Options irrespective of frequency of SIP
Systematic Withdrawal Plan & Systematic Tranfer Plan (SWP & STP)Minimum Balance in the scheme should be Rs. 25,000/- at the time of enrollment.
Systematic Withdrawal Plan (SWP): Minimum amount for each withdrawal is Rs.1000/- and in multiples of Re.1/- thereafter for a minimum period of 6 months. Withdrawal on 25th of each month or, if 25th is a holiday, then the next effective business day.
Sub-option Eligible dates for effect Minimum Amt per transfer* No. of Installments
Weekly 1st Business day of the week Rs. 1,000/- 12 Installments
Monthly 1st, 5th 10th, 15th, 20th &
25th of each month
Rs. 1,000/- 12 Installments
Quarterly 1st, 5th 10th, 15th, 20th &
25th day of first month
Rs. 2,500/- 4 Installments

(*Multiples of Re.1/- above minimum investment)
Riskometer
This product is suitable for investors who are seeking*:
  • Long term capital appreciation with income
  • Investments in equity & equity related instruments as well as debt and money market instruments.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.