ICICI Prudential Mutual Fund has announced the launch of a feature known as ICICI Prudential Booster Systematic Transfer Plan (Booster STP). Booster STP is an enhanced Systematic Transfer Plan wherein unit holders, based on market valuations, can opt to transfer variable amounts from one source scheme to a designated target scheme at defined intervals. Investors are required to provide a Base Installment Amount that is intended to be transferred to the Target Scheme.
Booster STP can vary installment amount from 0.1X to 5X of base installment amount based on Equity Valuation Index. Through this enhanced STP, a very small amount of base installment is invested when equity valuation is considered expensive. Conversely, when the valuation is considered cheap, the investment will be of a relatively higher value. For example, if the base installment amount is say Rs. 1,00,000 then it invests anywhere between Rs 10,000 to Rs 5,00,000 (0.1x to 5x) based on market valuation. The multiplier (0.1x to 5x) is arrived at on the basis of our time-tested Equity Valuation Index.
This facility should not be confused with Systematic Transfer Plan, Value Systematic Transfer Plan, Flex Systematic Transfer Plan; all these are separate facilities provided by the fund house.
