Baroda Pioneer Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Baroda Pioneer Liquid Plus Fund. It is an open-ended debt fund scheme. The face value of the new issues will be Rs 10 per unit.
The main objective of the scheme is to provide optimal returns and liquidity through a portfolio comprising of debt securities and money market instrument.
The scheme will offer two plans i.e. regular option and institutional option. Growth and dividend options will be available under the scheme. Dividend option will further offers dividend payout and dividend reinvestment facilities with weekly dividend option and daily dividend option.
The minimum investment amount is under regular plan is Rs 5000. Under institutional plan, the minimum investment amount is Rs 1 crore.
The scheme seeks to collect a minimum corpus of Rs 1 crore during NFO period.
The scheme will invest 65-100% in money market instruments/ debt instruments with average maturity of not greater than 1 year. The scheme will invest upto 35% in debt instruments with average maturity more than 1 year. Debt instruments may include securitised debt. The scheme may invest in securitised debt upto 100% of its net assets. No investment will be made in foreign securitised debt. The scheme net assets will have a maximum derivative net position of 50% of the net assets of the scheme. Investment in derivative instruments may be done for hedging and portfolio balancing.
The scheme will not charge any entry load. The scheme will charge 0.10% as an exit load for the redemption within 5 calendar days from the date of allotment. A switch-out or a withdrawal under SWP or transfer under STP may also attract an exit load like any redemption.
The performance of the scheme will be benchmarked against the CRISIL Liquid Fund Index.
Hetal Shah will manage the investments under the scheme.
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