Publish Date:
Bajaj Finserv Mutual Fund introduces – Bajaj Finserv Banking and PSU Fund.
It is an open-ended debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds with relatively high interest rate risk and moderate credit risk.
Accordingly, the investment objective is to generate income by predominantly investing in debt & money market securities issued by Banks, Public Sector Undertaking (PSUs), Public Financial Institutions (PFI), Municipal Bonds and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. There is no assurance that or guarantee that the investment objective of the scheme will be achieved.
[Read: Best Banking & PSU Debt Funds to Invest in India]
Under normal circumstances, Bajaj Finserv Banking and PSU Fund will hold an allocation of 80% to 100% in Debt and money market instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds and 0% to 20% in Debt and money market securities (including government securities) issued by entities other than banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds.
As per the Scheme Information Document, Bajaj Finserv Banking and PSU Fund will manage and operate its investment strategy within the inhouse framework of the INQUBE fund philosophy.
The Scheme aims to invest in securities issued by banks and financial institutions across maturities, focusing on credit quality and income yield or accrual. It will invest in debt and money market instruments issued by entities such as Scheduled Commercial Banks, Public Financial Institutions (PFIs), Public Sector Undertakings (PSUs), Municipal Corporations and such other bodies, and may also invest in the schemes of Mutual Funds.
Bajaj Finserv Banking and PSU Fund’s performance will be benchmarked against NIFTY Banking and PSU Debt Index
The scheme will be managed by Mr Siddharth Chaudhary and Mr Nimesh Chandan.
The NFO opens for subscription on October 25, 2023 and closes on November 06, 2023. The schemes will reopen for continuous sale and repurchase on Within five business days of allotment date.
The minimum subscription amount is Rs 1,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).