Sometimes we overestimate our need to have instant access to our money. This leads to our hard earned money lying idle in the bank account, while we keep planning to deploy our money in a way that will earn higher interest. At the same time we may not want to lock our money into a long term investment because we might require it in the near future.

ICICI Prudential Ultra Short Term Plan, an open-ended income fund, is designed for such short-term requirement, as it enables deploying of funds for shorter periods of time, from 3 to 6 months, to generate regular income while cautiously monitoring the rate of interest.

Investment Philosophy

This fund intends to generate regular income through investments in a basket of debt and money market instruments of very short maturities, with a view to providing reasonable returns, while maintaining an optimum balance of safety, liquidity and yield. The portfolio predominantly comprises of short-term debt/ money market instruments and liquid securities with high credit quality. It seeks to take very limited exposure to longer maturity securities to provide mark to- market returns, and is ideal for a short term investment in a scenario where interest rates are falling.

Key Benefits

Investors seeking safety and liquidity, while earning stable and competitive returns, in a scenario where it is difficult to forecast the future interest rate outlook.
Conservative investors who may want to outplay the yield in short-term bank deposits in a tax-efficient manner.

This product is suitable for investors who are seeking :

Short term savings solution
A Debt Fund that aims to generate regular income by investing in debt and money market instruments of very short maturities.
Low risk