The debt market offers its own risk-to-return tradeoff, which is triggered by changes in interest rates and the impact they have on debt securities. To a fund manager, however, the changes in the yield curve not only offers risk, but also opportunities to benefit by actively managing these risks and making use of an opening to increase returns.

ICICI Prudential Flexible Income Plan, an open-ended income fund, seeks to actively manage such risks as a conscious investment strategy by allowing the fund manager to switch the allocation from a 100% debt stance to a 100% cash stance, which provides the flexibility to implement yield curve strategies, or manage interest rate volatility better.

Investment Philosophy

This debt fund invests entirely in both, short and long term debt securities of the government and the corporate sector. Its objective is to earn returns in the form of interest income and capital gains, which equals long term deployment in debt markets. The fund intends to minimize risks from liquidity and credit, while actively seeking to manage interest rate risks.

Key Benefits

A portfolio which strategically deploys funds in the debt markets to take advantage of interest rate risks.
Facilitates participation in markets that are large and institution-dominated.
Provides the potential to earn total return from both interest and capital gains, with the attendant risks of capital loss as well.

This product is suitable for investors who are seeking :
Short term savings solution
A Debt Fund that aims to maximise income by investing in debt and money market instruments while maintaining optimum balance of yield, safety and liquidity.
Low risk