ICICI Prudential Equity Savings Fund-Growth ★★★★ ★ Nav as on ₹ 14.4400 0.00 (0.00%) Things You should consider Annualized Return for 3 year: 4.92%

Suggested Investment Horizon: 1 – 3 years

Time taken to double money: N.A

MUMBAI: Close-ended mutual fund products, which are listed on the stock exchanges, usually trade at a discount to their net asset value (NAV). So, when ICICI Prudential Equity Savings Fund – Series 1 (Dividend) — a scheme with a 3-year lock-in — traded at a 231% premium to its net asset value (NAV) on Friday, it baffled many in the mutual fund industry and wealth management circles.The scheme, which was launched in February 2014, closed at Rs 32.2 on the BSE on Friday, off the day’s high of Rs 46, against its NAV of Rs 13.87. The value of the scheme on the BSE has moved up from Rs 13.02 on July 31. The product was traded on 10 trading sessions since July 31 and has hit the 20% upper limit on most of these days with thin volumes.According to Sebi norms, closeended funds need to be compulsorily listed on the stock exchange to give an exit option to investors. Some of the earlier listed funds like fixed maturity plans (FMPs) or capital protection oriented funds trade at a 10-20% discount to their NAVs. But they hardly trade on the exchange, a reason why the industry is surprised with the move. While a spokesperson from ICICI Prudential Mutual Fund declined to comment, brokers said the activity could have been sparked by some savvy individuals as part of their tax management related to capital gains For instance, A has short-term capital loss in his books and B has short-term capital gains. If Aowns ICICI Prudential Equity Savings Fund bought at Rs 10 in his books, in February 2014, he sells it to B at Rs 40. A makes a short-term capital gain of Rs 30, which he can offset against his short-term loss on his other equity transactions. The acquisition price of B is Rs 40.Now, B can sell these units at Rs 12 on the exchange later, booking a loss of Rs 28, which will be adjusted against his short-term capital gains. Also, even if B does not have short-term capital gains when he sells the units at loss, he has short-term capital loss in his books which he can offset with gains made subsequently this year or can carry forward to next 8 years.Launched in February 2014, the fund scheme has a corpus of Rs 58 crore.