PPFAS Mutual Fund launches liquid fund

PPFAS Mutual Fund announced the launch of a liquid fund called Parag Parikh Liquid Fund. The Investment objective of the scheme is to generate reasonable returns with a lower risk and high liquidity, the fund house said in a press release. The NFO will open and close for subscription on May 9. The scheme will be managed by Raj Mehta.

The scheme will invest 80-100 per cent in money market instruments (including cash, repo, CPs, CDs, Treasury Bills, CBLO and Government Securities with maturity/ residual maturity up to 91 days). It would further allocate 0-20 per cent in debt instruments (including floating rate debt instruments and securitised debt with maturity/residual maturity up to 91 days).

Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund, said, "We have received constant feedback from our investors and partners for the need of a liquid scheme. It will enable them to transact and invest in our existing flagship equity scheme - Parag Parikh Long Term Equity Fund through STP (Systematic Transfer Plan) route”.


Investors have both growth and dividend options to invest in the new scheme. In the dividend category, the options include daily dividend reinvestment, weekly dividend reinvestment, monthly dividend reinvestment and monthly dividend payout. There is no entry and exit load in the scheme.

Transactions can be initiated through mobile application and web portals, stock exchange platforms for mutual funds. Application forms for the scheme are available only offline.

The minimum initial investment in the scheme would be Rs 5,000 and the minimum additional purchase would be Rs 1,000. The Scheme is slated to reopen on May 14, 2018. The scheme's performance would be benchmarked against CRISIL Liquid Fund Index.