Peerless Funds Management, promoted by The Peerless General Finance India Co. Ltd, has initiated its journey in the mutual fund industry with the launch of two schemes: the Peerless Liquid Fund (open-ended liquid scheme) and Peerless Ultra Short Term Fund (open-ended debt scheme).
Peerless Liquid Fund is the low-risk option and is positioned to meet the needs of those investors who want to deploy their funds for a short period of time with the least amount of risk.
The risk return profile of Peerless Ultra Short Term Fund positions it in between a liquid fund and short term income fund. The portfolio strategy seeks to increase yield by having a marginally higher maturity and moderately higher credit risk as compared to a liquid fund while maintaining a balance between safety and liquidity.
Since the objective of the scheme is to generate reasonable returns with the least commensurate risk, the scheme would predominantly invest in money market instruments. As the turnover of the portfolio would be high, given the fact the investors in a liquid fund would deploy their funds for a short period of time, the portfolio would be structured to incorporate high liquidity by the use of cash and cash equivalents.
Investors have the choice of three plans: Retail, Institutional and Super Institutional Plans.
Two options are on offer: growth and dividend in each plan. The dividend option would provide three sub-options: Daily (re-investment), weekly (payout and reinvestment) and monthly (payout and reinvestment).
The NFO opens on 17th February, 2010 and closes on 18th February, 2010.
The issue comprises units of Rs 10 per unit during the NFO period and at applicable NAV based prices upon re-opening.
The minimum application amount/number of units is as mentioned below:
Retail: Rs 5,000 and in multiples of Re 1/- thereafter
Institutional: Rs 1 crore and in multiples of Re 1/- thereafter
Super Institutional: Rs 5 crore and in multiples of Re 1/- thereafter