ICICI Prudential Mutual Fund has launched ICICI Prudential Booster Systematic Investment Plan (Booster SIP), a feature where unitholders can transfer variable amounts at regular intervals, based on the Equity Valuation Index (EVI) model.
According to a press release, booster SIP allows investors to invest in a disciplined manner to the source scheme and transfer a variable amount to the target scheme in the range of 0.1X-10X of base installment amount depending on EVI model at regular intervals. Through this feature, a smaller amount of the base installment is invested when equity valuation is considered expensive. Conversely, when the valuation is considered cheap, the investment will be relatively higher.
Speaking on the launch of the product, Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC, said, “Booster SIP leverages rupee cost averaging and value averaging by staggering investments in the target scheme through dynamic installment. Market valuation based on which the installment amount is decided is based on in-house Equity Valuation Index.”
Booster SIP invests in Equity and Debt based on dynamic installment. As a result, this feature helps investors to make the most out of volatile market conditions and for those looking for an optimal investment approach to invest for the long term., the press release said.