Pramerica MF launches new monthly income fund

Our Bureau Mumbai | Updated on March 16, 2011

Pramerica Mutual Fund has launched a monthly income fund — ‘Pramerica Dynamic Monthly Income Fund'. The new fund offer for the product, which opened for subscription on March 8, will close on March 22, said a statement from the company.

The fund is powered by the DART — Dynamic Asset Rebalancing Tool, a proprietary tool developed by Pramerica Asset Management. This tool will determine the optimum asset allocation mix between debt and equity by taking into account key factors that have an impact on the market. The fund will invest in both debt and equity.

Valuations attractive

“Equity markets are trading at attractive valuations. With Sensex at about 18,000 levels, the one year forward earnings estimates are at Rs 1,200 a share and the markets are trading at a forward P/E of 15, which is substantially below the long term average of around 18 P/E. Thus, the chances of getting better returns are much higher,” said Mr Ravi Gopalakrishnan, Executive Director and Chief Investment Officer — Equity.

When the markets are looking expensive, Pramerica DART is designed to book profits and when the markets are cheap, to increase the exposure to equities and thus reduce the impact of market volatility.

The minimum investment into the scheme is Rs 5,000 and then in multiples of Re1 thereafter. The fund is benchmarked to the CRISIL MIP Blended Index.

Published on March 16, 2011

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