OFFER DOCUMENT

Prudential ICICI Mutual Fund
Under normal circumstances, the asset allocation under the Scheme will be as follows:
Sr. Type of Security Approximate Maximum Minimum Risk Profile
No. Allocation (% of Allocation of the Allocation of
Corpus) under corpus the corpus
normal
circumstances.
26
1 Equities & Equity related securities 60% 80% 51% Medium to high
2 Debt securities & Money Market 40% 49% 20% Low to medium
instruments & Cash (including –
money at call)
*Note: If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will
not, normally, exceed 25% of the corpus of the Scheme.
Investors may note that securities, which provide higher returns typically, display higher volatility. Accordingly, the investment
portfolio of the Scheme would reflect moderate to high volatility in its equity and equity related investments and low to
moderate volatility in its debt and money market investments.
Position of Debt Market in India:
The debt market in India is estimated at about Rs.7,00,000 crores as of now. A bulk of the debt market consists of Government
Securities. Other instruments available currently include Corporate Debentures, Bonds issued by Financial Institutions, Commercial
Paper, Certificates of Deposits and Securitised Debt. Securities in the Debt market typically vary based on their tenure and rating.
Government Securities have tenures from one year to twenty years whereas the maturity periods of the Corporate Debt varies
from one year to ten years. Securities may be both listed and unlisted but this does not impact liquidity of the instruments. Most
of the transactions in the debt market are conducted over telephone and are entered on principal-to-principal basis. The yields
and liquidity on various securities, currently, are as under:
Issuer Instrument Maturity Yields Liquidity
GOI Treasury Bill 91 days 4.85-4.95%* High
GOI Treasury Bill 364 days 4.80-4.90%* High
GOI Short Dated 1-3 Yrs 5.05-5.25%** High
GOI Medium Dated 3-5 Yrs 5.25-5.40%** High
GOI Long Dated 5-10 Yrs 5.40-5.80%** High
Corporates Taxable Bonds (AAA) 1-3 Yrs 5.25-5.65%*** Medium
Corporates Taxable Bonds (AAA) 3-5 Yrs 5.60-5.90%*** Low to medium
Corporates CPs (P1+) 3 months 4.95-5.20%* Medium to High
Corporates CPs (P1+) 1 Yr 5.15-5.35%* Medium
* Money Market yield
** Semi-annual yield
*** Annualised yield
d) Change in Investment Pattern
Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view
market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly
understood that the percentages stated above are only indicative and not absolute and that they can vary substantially
depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests
of the Unitholders. Such changes in the investment pattern will be for short term and defensive considerations.
Provided further and subject to the above, any change in the asset allocation affecting the investment profile of the Plans
shall be effected only in accordance with the provisions of sub regulation (15A) of Regulation 18 of the Regulations, as
detailed later in this document.
e) Terms of the Scheme
i) Liquidity
On an on-going basis, an investor can purchase and redeem Units on every Business Day at NAV based prices, subject to
the applicable load structure.
a. Redemption of Units
The Units can be redeemed (i.e. sold back to the Fund) on every Business Day at the Redemption Price (hereinafter
defined). The redemption request can be made for a minimum amount of Rs.500 or more. Redemption can also be
made for the total number of units standing to the credit of investor at the time of closure of account, even though
such redemption is for less than the minimum amount as stated above.
Redemption Price