With more than 1100 applications in total, the fund saw a lot of retail participation
Pramerica Liquid Fund, an open-ended liquid scheme, launched by Pramerica Mutual Fund on August 23, has garnered over Rs 665 crores during its new fund offer (NFO) that closed on August 26. The scheme reopens for continuous sale and repurchase on 30th August.
Pramerica Liquid Fund has a single plan with single expense structure for all investors, whether retail or institutional. The current expense structure of Pramerica Liquid Fund is kept at a level of wholesale plans of other liquid funds in the market (commonly referred to as ‘Institutional’ or ‘Super Institutional Plans’ that are available to very large investors only). This gives the retail investors a chance to enjoy the same returns as any other large investor. This feature has generated a lot of retail interest, leading to over 1000 applications from retail customers, which is unusual for a liquid fund. Typically, multiple plans offered under other liquid funds have a differential expense structure, with lower expense ratio for wholesale investments, which retail investors may not be able to afford because of high minimum investment amount.
“We are very pleased that our very first offering, which was aimed at creating value for investors with a low risk appetite, has been widely accepted. Considering the present market volatility and rising interest rates, it is an overwhelming response from investors for our liquid Fund.” said Vijai Mantri, managing director & CEO, Pramerica Asset Managers Pvt. Ltd.
Pramerica Liquid Fund, rated ‘AAAf’ by CRISIL, is the first fund from the Pramerica Mutual Fund stable. It does not have an entry or exit load. An investor who invests even for a very short period can do so without any exit load.
Mr. Mahhendra Jajoo - executive director & CIO - Fixed Income, Pramerica Asset Managers Pvt. Ltd. said, “The portfolio focuses on high safety of capital with investments focused on papers of highly rated banks and corporates. As interest rates are expected to increase further in near term, low average maturity and high safety is likely to attract more investors to liquid funds.”
The assets of this fund will be allocated to Debt instruments (including asset backed securities), money market instruments and floaters having a residual maturity of upto 91 days.
About Pramerica Asset Managers Pvt Ltd.:
Pramerica Asset Managers Pvt. Ltd. (Pramerica Asset Managers), a wholly owned subsidiary of Prudential Financial, Inc. (PFI) of U.S.A., is the asset management company for Pramerica Mutual Fund (‘the Fund’) registered with Securities & Exchange Board of India.
Headquartered in Mumbai, Pramerica Asset Managers has branches in 8 cities and plans to set up its Investor Service Centers at many other locations. Pramerica Asset Managers brings a rich blend of global resources, intellectual acumen and local expertise and is committed to designing superior and meaningful, wealth-building solutions for its investors. Pramerica Asset Managers plans to provide unique training and education programs for building exceptional capabilities and best business practices for its business associates. Pramerica Asset Managers firmly believes that a holistic approach to investing is imperative to bridge the gap between customers’ current financial scenario and their aspirations.
For more information, please visit www.pramericamf.com
About PFI:
Pramerica is the trade name used in India and select countries outside of the United States by Prudential Financial, Inc. (PFI) and its affiliates. PFI is a company incorporated and with its principal place of business in the United States. PFI (NYSE: PRU), is a financial services leader with approximately $690 billion of assets under management as of June 30, 2010. PFI has operations in the United States, Asia, Europe, and Latin America. PFI’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., the company’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com. Prudential Financial, Inc., of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.
*Statutory Details: Pramerica Mutual Fund is set up as a Trust under the Indian Trusts Act, 1882. Sponsor: Prudential Financial, Inc., of the U.S.A. [liability restricted to initial contribution of Rs. 1 Lac]. Trustee: Pramerica Trustees Private Limited, a Company registered under the Companies Act, 1956. Investment Manager: Pramerica Asset Managers Private Limited, a Company registered under the Companies Act, 1956. Pramerica Liquid Fund is the maiden scheme of Pramerica Mutual Fund. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
CRISIL Disclaimer: A CRISIL credit quality rating on a bond fund reflects CRISIL’s current opinion on the degree of protection offered by the rated instrument from losses related to credit defaults. It does not constitute an audit by CRISIL of the fund house, the scheme, or companies in the scheme’s portfolio. CRISIL ratings are based on the information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell or hold the rated scheme: it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. CRISIL reserves the right to suspend, withdraw or revise its rating at any time on the basis of any new information or unavailability of information or any other circumstances, which CRISIL believes may have an impact on the rating.
