Mumbai: PGIM India Mutual Fund announced the launch of its “Money Market Fund”. The NFO will open for subscription on February 28, 2020 and will close on March 5, 2020. PGIM India Money Market Fund will be managed by Kumaresh Ramakrishnan, CIO-Debt and Kunal Jain, Fund Manager – Debt.
The benchmark of the fund is CRISIL Money Market Fund Index and will aim to generate alternate investment avenues to park idle surplus funds for short term with the investment horizon of 4 – 6 Months i.e. up to September 2020. The positioning is keeping in view the current nature of the short-term yield curve, present liquidity conditions and expectations of easy monetary conditions for the near term. However, the fund manager will act according to the evolving market dynamics.
“Being at the fag end of the fiscal year, Money market securities currently enjoy fiscal year crossover premiums. This together with prevailing benign liquidity conditions greatly increases the chances of such a fund outperforming the Liquid and Ultra short categories in the short term. This fund thus makes a case for a better risk reward opportunity over other traditional alternatives in the short-term space,” said Kumaresh Ramakrishnan, CIO-Debt, PGIM India Mutual Fund.
The PGIM India Money Market fund will invest across a range of money market instruments including Commercial Papers (CPs), Certificates of Deposits (CDs), Treasury Bills, Cash Management Bills (CMBs) and any other discounted instrument of a tenure not exceeding 1 year.
The minimum initial investment in the scheme will be Rs 5,000 and multiples of Re 1 thereafter. The fund also provides a minimum additional investment of Rs 1,000 and in multiples of Re 1 thereafter. There is no entry or exit load.
For investors there are regular and direct plans with each plan having growth and dividend options. Dividend Option has the following two facilities:
i. Dividend Payout facility; with a monthly frequency
ii. Dividend Re-investment facility; with a daily, weekly frequency
About PGIM India Mutual Fund
PGIM India Mutual Fund is a wholly owned business of PGIM, the global investment management business of Prudential Financial, Inc. (US). PGIM is a global top 10 Investment Manager and offers a broad range of investment capabilities through its multi-manager model with experienced investment teams focused on specific asset classes and approaches to investments. PGIM is built on the strength and stability of a 140-year legacy and is dedicated to serving the needs of its global client base with a commitment to investment performance, product innovation and integrity. PGIM has its presence across 16 countries in 38 offices with over 1,300+ investment professionals.
PGIM India Asset Management is a full-service investment manager offering a broad range of equity and fixed income solutions to retail and institutional investors throughout the country. PGIM India Asset Management manages 19 open-ended funds operated by 15 investment professionals. In addition to managing investor assets through domestic Mutual Funds, the fund house also offers Offshore Funds and Portfolio Management Services. The fund house leverages the strength and stability of PGIM’s 140-year legacy to build on its decade long history in India.