The fund house has collaborated with six collection bankers present in more than 100 locations
Mumbai: Pramerica Mutual Fund, which launched its first debt fund in August this year has now launched two new equity funds- Pramerica Equity Fund and Pramerica Dynamic Fund.
NFO Date: 19th November to 3rd December.
Pramerica Equity Fund: It is a fund with a large cap bias with two investment strategies. First, the sector rotation will identify the appropriate sector and special situations (a bottom-up strategy) would identify hidden companies with potential upside. It will invest 65% to 100% in equity and up to 35% in debt and money market instruments. The scheme is benchmarked against S&P CNX Nifty index.
Pramerica Dynamic Fund: It uses an asset rebalancing tool called DART (Dynamic Asset Rebalancing Tool) developed in-house by the mutual fund. It adopts a methodology called mean reversion (prices and returns will eventually move back towards the long-term average) for its asset allocation. The fund will buy when the price of a particular stock is down and sell when price is up. The scheme will invest up to 100 per cent in equity and up to 70% in debt and money market securities including fixed income derivatives. This fund has a hybrid index with 50 per cent weight age to Nifty and the balance 50 per cent to CRISIL MIP Index.
Expenses/Exit Load: Both the schemes carry 2.50 per cent fund management fees and 1 per cent exit load if investment redeemed within a one year.
Fund Managers: The schemes are managed by Ravi Gopalakrishnan, Executive Director and Chief Investment Officer (CIO), Equity and Mahendra Jajoo, Executive Director and CIO, Fixed Income.
Mr. Gopalkrishnan has been the head of PMS with Principal PNB MF, Tata MF and was a Fund Manager, Equities with Sun F&C Asset Management Ltd prior to joining Pramerica.
Mr. Jajoo was the Head of Fixed Income and Structured Products at Tata MF and CIO at ABN AMRO AMC from January 2005 to June 2008.
Target investors: The Pramerica Dynamic Fund is suitable for those who wish to have returns with less risk and controlled volatility. “Pramerica Dynamic Fund aims to buy equities when they are cheap and sell when they are expensive, thus taking the burden off the investor. It is an ideal product for investors who seek equity comparable returns coupled with reduced volatility,” says Vijai Mantri, MD & CEO of Pramerica Mutual Fund.
Distribution Strategy: The fund has tied up with national distributors, IFAs and banks. The fund will be marketed with the help of six collection banks present in more than 100 locations in India. So far, 1,200 IFAs have enrolled themselves with the fund house. It plans to rope in more IFAs going ahead.
Custodian/Collection Bank/RTA: Citibank is the custodian bank and Karvy is the official registrar of Pramerica Mutual Fund. HDFC Bank is the collection bank for its existing funds.
New offers in the pipeline: It filed an offer document with SEBI to launch its Pramerica Dynamic Bond Fund in October 2010 and is also chalking out the contours of its next offering which will be a commodity fund.
The fund house received final SEBI approval to set up business in India on 13 May 2010. As per AMFI data, it had 1,338 investor accounts with assets under management of Rs. 630 crore as on September 2010.
