However, its fund of funds (FOF) scheme, aimed at retail investors, will be launched shortly for which it has sought approval from the Securities and Exchange Board of India (Sebi).
According to Pankaj Razdan, deputy CEO, Prudential ICICI AMC, We will be looking at consistent dividend-paying companies which are fundamentally strong and have value. As of now, the companies are high on price so they do not look attractive. We have deferred the launch and will time the product in September when the next round of dividends will be announced.
The dividend plan will primarily invest in top level 30-40 companies across the board.
However, the FOF scheme will use the underlying schemes which will get bigger in size as a lot of money will come in the underlying schemes.
Added Mr Razdan, We have various asset classes available and there is a need for asset allocation amongst our various schemes. Today, FOF is more like an adviser and an investor can diversify at a much lower cost.
There will be five series of schemes on offer in the FOF. These include conservative, very conservative, aggressive, very aggressive and moderately aggressive schemes.
Initially, the FOF will invest in the basket of Prudential ICICI AMCs schemes alone. According to Mr Razdan, If an investor wants to exit from one scheme and move to another he has to pay capital gains tax. But in case of FOF, he will have the facility of shifting from one scheme to another without paying any tax.
Currently, Prudential ICICI AMC manages assets to the tune of about Rs 12,600 crore. The AMC intends to raise the number of its advisers from December onwards. As of now, they have 36 offices, including marketing representative offices. The AMC is currently training its advisers on how to expand their reach, added Mr Razdan.