ICICI Prudential Constant Maturity Fund Aims To Preserve Wealth

ICICI Prudential Life Insurance Co.'s newly launched debt fund aims to preserve wealth in the long term in addition to reaping tax benefits.

"I will be moderating an average maturity between nine to 11 years in government securities, state development loans and AAA-rated corporates," Arun Srinivasan, senior executive vice president of ICICI Prudential, told BQ Prime's Niraj Shah in an interview.

The constant maturity fund will enable the policyholder to preserve the capital for the next five to 15 years. With inflation declining, this is the best time to "locking in money at the highest yield possible", according to Srinivasan.

He underscored that the policyholder would have to remain invested for at least five to 10 years.

"If he remains invested for the next five years or 10 years, he can easily make closer to a higher single digit type returns, but the idea is more of a preservation of capital."