This fund is available for investments with the company’s flagship Unit Linked Insurance Plans (ULIP). ULIPs provide customers with a unique proposition of life cover, financial security to the family and facilitate building wealth over the long-term. ICICI Pru Constant Maturity Fund is available with Unit Linked Products from May 15, 2023.
Investments in ULIPs provide tax benefits. If annual investments made are up to Rs 2.5 lakh and with a life cover of 10 times the annual premium, maturity proceeds are tax-free for customers.
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Customers have the option of investing in this fund through the company’s ULIP offerings like ICICI Pru Signature, ICICI Pru Smart Life and ICICI Pru LifeTime Classic.
Commenting on the same, Arun Srinivasan, Head of Fixed Income, ICICI Prudential Life Insurance, said, “We are excited to launch a unique debt fund which makes us the country’s first insurer to offer such a fund in the fixed income ULIP space. With the interest rate cycle closer to its peak, it is a great opportunity for customers to
channelise investments to the ICICI Pru Constant Maturity Fund. We suggest investors apportion a share of their savings to ULIP debt funds for capital preservation and long-term wealth creation.”
“By investing in this fund customers will be able to lock-in their investments at the high current interest rates and benefit from increasing NAV of the fund since bond prices are expected to rise over time. Customers need to invest for the long term and make regular contributions to achieve their financial goals such as buying the dream house or leading a financially independent retired life. Since this investment is locked up for a minimum of 5 years with the flexibility to switch between fund options, it would enable investors to build wealth. All our debt funds have consistently outperformed their respective benchmarks since inception. Significantly, we have a track record of zero non-performing assets (NPAs) in our portfolio across market cycles,” he added.
Srinivas Balasubramanian, Head of Products, ICICI Prudential Life Insurance, said, “We are delighted to offer customers the industry’s first-of-its-kind debt fund. The ICICI Pru Constant Maturity Fund will be available with our linked savings products. Customers can invest their premiums in this fund to take advantage of the high interest rates prevailing and lock in their investments for the long-term.”
ULIPs also offer customers a tax-efficient mode of building long-term savings as they can invest up to Rs 2.5 lakh annually for the duration of the policy and take home a tax-free maturity amount.
“Besides steady and stable returns, it offers customers a life cover which financially secures their loved ones. Customers trust us due to our track record of delivering on promises made for over two decades,” Balasubramanian added.