PGIM India Mutual Fund proposed scheme mergers would modify several of its core characteristics. As a result, the fund house has given investors an exit option (without an exit load) in conformity with mutual fund laws.
PGIM India Mutual Fund has announced the merging of five debt funds.. The PGIM India Short Duration Fund (PSDF) and the PGIM India Banking and PSU Debt Fund (PBPSU) will merge to become the PGIM India Corporate Bond Fund (PCBF). The PGIM India Money Market Fund (PMMF) and the PGIM India Low Duration Fund (PLDF) will combine.
As of July 31, 2023, PSDF’s assets under management (AUM) totaled Rs 28 crore. The bond portfolio’s Macaulay duration is between one and three years because to the scheme’s bond investments. PBPSU oversees assets worth Rs 46 crore and makes investments in the debt instruments of banks, PSUs, and PFIs.
Typically, those that have an investment mindset participate in these scams. The fund house wants to combine these two into PCBF, which is also a popular savings vehicle for high-quality bond investors. PCBF oversees Rs 47 crore worth of assets.
“As of right now, all three of the schemes are rather tiny, which continues to be difficult to manage effectively in accordance with the investment mandate. The fund house explained the rationale behind the merger of the schemes, saying that some schemes have mandates and limits on investing in a particular instrument, as well as requirements in terms of Macaulay duration, etc., which a scheme with AUM below an optimal size may find difficult to maintain and could potentially have a negative impact on investors.
