Pramerica Asset Managers, the Indian arm of the US-based Prudential Financial, today announced the launch of its first product, which would invest in debt securities.
The Pramerica Liquid Fund new fund offer (NFO) would open for subscription August 23, and close on August 26, Pramerica said in a statement.
The open-ended fund would invest the corpus in debt and money market instruments and the performance would be benchmarked against the CRISIL Liquid Fund Index.
"The new fund is aimed at creating value for investors with a low risk appetite," Pramerica Managing director and CEO Vijai Mantri said.
The fund would act as an ideal short term investment avenue for surplus funds and also the dividend from this scheme is tax exempted.
"The fund presents an option to investors to benefit from presently rising interest rates. Investors can also use this fund for investing cash as part of asset allocation," Pramerica Executive Director & Chief Information Officer (Fixed Income) Mahhendra Jajoo said.
In May, the company had received market regulator SEBI's approval for starting mutual fund operations in the domestic market.
With this approval, Pramerica has joined the league of Italian bank UniCredit's arm Pioneer Global, Japan's Shinsei, South Korea's Mirae Asset and France's Axa, who have launched their products in the country over the past three years.
Globally Prudential Financial manages assets worth $693 billion.
The US-based parent Prudential Financial has already infused $7.5 million into the Indian asset management company.