OFFER DOCUMENT

Prudential ICICI Balanced Fund
The Scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds,
provided it is in conformity to the investment objectives of the Scheme and in terms of the prevailing Regulations.
As per the Regulations, no investment management fees will be charged for such investments.
For the present, the Scheme does not intend to enter into underwriting obligations. However, if the Scheme
does enter into an underwriting agreement, it would do so after complying with the Regulations and with the
prior approval of the Board of the AMC/Trustee.
Portfolio Turnover
Portfolio turnover is defined as the aggregate of purchases and sales as a percentage of the corpus of the Scheme
during a specified period of time.
The AMC’s portfolio management style is conducive to a low portfolio turnover rate. However, the AMC will take
advantage of the opportunities that present themselves from time to time because of the inefficiencies in the securities
markets. A high portfolio turnover rate may represent arbitrage opportunities that exist for scrips held in the portfolio.
The AMC will endeavour to balance the increased cost on account of higher portfolio turnover with the benefits
derived therefrom.
PROCEDURE FOLLOWED FOR INVESTMENT DECISIONS:
1) The Fund Manager of each scheme is responsible for making buy/sell decisions in respect of the securities in the respective
scheme portfolios, subject to final approval by the Chief Investment Officer. The investment decisions are made and
approved on daily basis keeping in view the market conditions and all relevant aspects.
2) The AMC has an Internal Investment Committee comprising of the Managing Director, the Chief Investment Officer,
Fund Managers and the Research Analyst who meet at periodic intervals. The Investment Committee, at its meetings,
reviews the performance of the schemes and general market outlook and formulates broad investment strategy.
The Chief Executive Officer who chairs the Investment Committee Meetings guides the deliberations at Investment
Committee. He, on an ongoing basis, reviews the portfolios of the schemes and gives directions to the Chief Investment
Officer, where considered necessary. It is the ultimate responsibility of the Chief Investment Officer to ensure that the
investments are made as per the internal/Regulatory guidelines, Scheme investment objectives and in the best interest of
the unitholders of the respective schemes.
The AMC has a team comprising of nine Fund Managers and one Research Analyst. All of these are involved in preparation
of research reports.
3) The Managing Director makes a presentation to the Board of AMC at each of its meetings indicating the performance of
the schemes. The performance of the schemes is reviewed by the Board with reference to the appropriate benchmarks as
also the performance of the schemes of the competition.
For Prudential ICICI Balanced Fund, the performance of the scheme will be benchmarked with CRISIL Balanced Fund
Index. The performance of the Scheme is reviewed by the Board with the benchmark as also the performance of the
schemes of the competitions
The Managing Director brings to the notice of the Board specific factors, if any, which are impacting the performance of
any individual scheme. The Board on consideration of all relevant factors may, if necessary, give directions to AMC. Similarly,
the performance of the schemes is submitted to the Trustees. The Managing Director explains to the Trustees the details
on Schemes’ performance vis-à-vis the benchmark returns.
4) Subsequent to the issue of Circular No.MFD/CIR/9/120/2000 dated November 24, 2000, the AMC constituted an internal
committee to approve the investment in un-rated debt securities. All such investments, as and when are made, will be
placed before the Board of Directors of AMC for its review.
5) The AMC has been recording investment decisions since the receipt of instructions from SEBI, in terms of SEBI’s circular
no. MFD/CIR/ 6 / 73 /2000 dated July 27, 2000.
6) The Chief Executive Officer of the AMC shall ensure that the mutual fund complies with all the provisions of SEBI (Mutual
Fund) Regulations, 1996, as amended from time to time, including all guidelines, circulars issued in relation thereto
from time to time and that the investments made by the fund managers are in the interest of the unit holders and shall
also be responsible for the overall risk management function of the mutual fund.
7) The Fund managers shall ensure that the funds of the Scheme/ schemes are invested to achieve the investment objectives
of the schemes and in the interest of the unit holders.
Risk Factors and Special Considerations
l Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the
objectives of the Scheme will be achieved.
l As with any securities investment, the NAV of the Units issued under the Scheme can go up or down depending on
the factors and forces affecting the capital markets.
l Past performance of the Sponsors, AMC/Fund does not indicate the future performance of the Scheme of the Fund.
l Investment decisions made by the AMC may not always be profitable.
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