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Pramerica Fixed Duration Fund-Series 2 Launched by Pramerica MF

Thursday, April 21, 2011

Recently, Pramerica Mutual Fund announced to launch of a close-ended income scheme. It is Pramerica Fixed Duration Fund-Series 2.

About Pramerica Fixed Duration Fund-Series 2 an online news portal about business and economy - economictimes.indiatimes.com writes,
“Pramerica Fixed Duration Fund-Series 2 is open for subscription from March 24 till March 28, 2011. The duration of the fund will be for 366 days from the date of allotment, including the date of allotment.”


Further it quotes a note of press release,
“The scheme seeks to provide reasonable returns, commensurate with a moderate level of risk, through investments in a portfolio of debt and money market instruments. The scheme has low credit risk and is tax-efficient.”


So, the scheme is aimed to provide reasonable returns with a moderate level of risk. It is a low credit risk and tax-efficient scheme.

The online news portal quotes a statement of Mahendra Jajoo who is the Pramerica Executive Director and CIO-Fixed Income,
“FMPs can be an ideal product for all investors who wish to invest in a product with moderate risk for a fixed tenure and earn tax-efficient returns. In the mid-quarter Monetary Policy review conducted on March 17, RBI hiked key rates by 25 bps.”


"Bank CDs are currently trading at attractive yields and with the fresh round of rate hike, they are expected to stabilise around these attractive levels. Thus, this could be an opportune time to invest in a FMP.”


It is time to invest in a FMP when bank CDs are currently trading at attractive yields. It is being considered as an ideal product for all investors who wish to invest in a product with moderate risk for a fixed tenure and earn tax-efficient returns. It is the most appreciating product like Samridhi Plus of LIC.
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