The fund is set to launch next month and will be positioned alongside its growth and income funds.
It will be managed by the Portfolio Management Group headed by Martin Brookes and will launch with a default exposure of 30 per cent equities and commercial property and 70 per cent fixed interest and cash.
PruFund was initially set up in 2004 and the current series has £1bn of assets.
PruFund funds are invested in Prudential’s with-profits fund and seek to provide more stable growth than expected from investing directly in the stockmarket.
A Prudential spokesman says: “The PruFund cautious fund will sit alongside the PruFund growth series as a fund-link within the flexible investment plan onshore bond wrapper.”
Chelsea Financial Services head of investment Matthew Woodbridge says: “The PruFund cautious growth fund will fill a gap in Prudential’s multi-asset life fund range and it should be popular with those advisers seeking lower-risk solutions for their clients.”