Baroda Pioneer Liquid Fund launches institutional plan

MUMBAI: Baroda Pioneer AMC on Wednesday announced the launch of Institutional Plan in Baroda Pioneer Liquid Fund. The initial offer opened on Jan 27 and will close on Feb 4.

Baroda Pioneer Liquid Fund is an open-ended liquid fund, which aims to generate reasonable returns with a high degree of safety and higher liquidity by investing in a portfolio of debt and money market instruments. It has a credit risk rating of mfA1+ from ICRA, which indicates highest-credit-quality.

The portfolio provides investors with investment avenues for their short-term surpluses and with reasonable returns combined with high levels of liquidity and safety through portfolio construction and in depth credit evaluation of securities. The fund would largely be invested in highly rated and liquid instruments.

���We are enhancing our product suite to offer investors a wider choice across the risk-return spectrum. It is our endeavour to continuosly make efforts to help investors achieve their financial goals through innovative products and solutions,��� said Rajan Krishnan, CEO, Baroda Pioneer AMC.

Baroda Pioneer Liquid Fund will follow a well-defined investment strategy that will attempt to minimise the credit risk, interest rate risk and liquidity risk to investors in the fund. The scheme will focus on the following investment strategies:

* 80% of the funds portfolio will be invested in AAA/P1+(or equivalent) or sovereign securities
* It will avoid exposure to real estate while taking exposure to good credit quality NBFCs with maximum limit of 15%
* The average maturity will be maintained below 6 months
* Maximum exposure will be to liquid Bank CDs, combined with CPs of public financial institutions and CPs of good manufacturing companies to enhance yield.

The fund would be managed by Alok Sahoo, Head Fixed Income and Hetal Shah, Fund Manager, Baroda Pioneer AMC.

The Institutional Plan will offer Growth and Dividend options. The minimum initial investment for the plan is Rs. 1 crore. The fund has no entry or exit loads.