Baroda Pioneer AMC Launches Institutional Plan in Baroda Pioneer Liquid Fund

Initial offer from January 27, 2009 – February 4, 2009

Mumbai, January 28, 2009: Baroda Pioneer AMC today announced the launch of Institutional Plan in Baroda Pioneer Liquid Fund that has a credit risk rating of mfA1+ from ICRA, which indicates highest-credit-quality short-term rating assigned by ICRA to debt funds. The 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.

The portfolio is designed such that investors are provided 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.

Commenting on the new fund, Mr. Rajan Krishnan, CEO, Baroda Pioneer AMC said, "With the launch of the Institutional Plan in Baroda Pioneer Liquid Fund 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."

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.

Source : Equity Bulls

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