The schemes: The three schemes are Income Plan, Growth Plan and Liquid Plan. The income plan seeks to generate income primarily through investments in debt instruments while maintaining an optimum balance of yield safety and liquidity. The fund will normally have a 75 per cent exposure in debt and balance in money market instruments. The fund is available in two flavours, regular dividend option and growth option. While the income option is available to investors seeking regular income and wanting to take advantage of tax exemptions under section 80l, the growth option will reinvest income generated and provides long term capital gains indexation benefits under section 112 of the Income tax act. Going by the prevailing interest rates and the performance of competing products, the fund should provide a return of 11.5-13.5 per cent over the next one year.

The growth plan seeks to generate long term capital appreciation primarily through investment in equities. The fund will normally have a 95 per cent exposure in equities and balance in debt and money market instruments. The fund will follow the value approach while picking stocks. Stock selection criteria will include fundamentals of the business, industry structure, quality of management, sensitivity to economic factors, financial strength of the company and key earning drivers.

The fund will normally have an exposure in 25-30 stocks per Rs 100 crore of corpus. The portfolio turnover will generally not exceed 75 per cent per year. Despite the stated value investment strategy, the fund is likely to follow a growth oriented strategy.

The fund management team which is also managing ICICI Premier and Power, is presently following a growth oriented strategy in the two closed-end equity funds.

The liquid plan seeks to generate reasonable return, while providing high level of liquidity through investments primarily in money market instruments. The fund will normally have a 80 per cent exposure in money market and balance in debt securities. Going by the prevailing interest rates and the performance of competing products, the fund should provide a return of 9-10 per cent over the next one year.

The minimum application amount is Rs 5,000 in the growth and income plans while Rs 15,000 in the liquid plan. Entry in all the three plans is on a no load basis. Exit within two years in Growth plan will carry an exit of 2 per cent, within 6 months in income plan will carry an exit load of 5 per cent and within five days in liquid plan will carry an exit load of 0.25 per cent.

Investment over longer durations than the said periods will carry no load on exit. The three plans also offer tax benefits under section 54EA and 54EB. The three plans offer systematic investment and withdrawal plans. The fund also offers lateral shift between plans.