Pramerica ST Floating Rate Fund opens for subscription

Pramerica Mutual Fund has a new fund 'Pramerica Short Term Floating Rate Fund', an open ended income scheme with an investment objective to generate regular income through investment in a portfolio comprising primarily in short maturity floating rate debt/money market instruments. The New Fund Offer (NFO) will be open for subscription from 7 February and will close on 9 February 2012. The scheme re-opens for continuous sale and repurchase on 13 February 2012.

The fund is priced at Rs 1000 per unit. The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. The fund seeks to garner a minimum subscription of Rs 20 crore under the scheme during the NFO period.

Entry load charge and Exit load will be NIL for the scheme.

The Fund would invest 65% to 100% of assets in floating rate debt securities with residual maturity of less than 400 days (including fixed rate debt instruments swapped for floating rate returns) and money market instruments with low to medium risk profile. On the other side it would allocate upto 35% of assets in floating rate and other debt securities with residual maturity between 400 days and upto 3 years (including fixed rate debt instruments swapped for floating rate returns) with low to medium risk profile.

CRISIL Short Term Bond Fund Index will be the Benchamrk index for the scheme and will be managed by Mahendra Jajoo.