Publish Date:
Baroda Mutual Fund has launched Baroda Banking and PSU Bond Fund.
It is an open-ended debt scheme predominantly investing in debt instruments of Banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds.
The Scheme seeks to provide regular income through a portfolio of debt and money market instruments consisting predominantly of securities issued by entities such as Banks, Public Sector Undertakings (PSUs), Public Financial Institutions and Municipal Bonds. However, there is no assurance or guarantee that the objective of the Scheme will be achieved.
Baroda Banking and PSU Bond Fund willhold a diversified portfolio of assets comprising at least 80% in bank CDs and bonds, PSU and PFI with rest in NBFC, HFC, PTC, central and state govt. bonds, etc. thereby maintaining adequate liquidity in the portfolio. It will Focus on credit quality, liquidity and risk-adjusted returns.
The fund aims to provide optimum returns while remaining focused on safety and liquidity as the investment strategy would be to invest in securities that give consistent returns at moderate risks.
Baroda Banking and PSU Bond Fund is mandated to invest 80% to 100% of its assets in Debt and Money Market Instruments issued by Banks, Public Sector Undertakings (PSUs), Public Financial Institutions (PFIs) and Municipal Bonds. Upto 20% of the funds portfolio can be held in Debt (including government securities) and Money Market Instruments issued by entities other than Banks, PFIs & PSUs. It can also invest upto 10% of its assets in Units issued by REITs &InvITs.
The scheme’s performance will be benchmarked against Nifty Banking & PSU Low Duration Bond index.
Baroda Banking and PSU Bond Fund will be managed by Mr Alok Sahoo, Mr Karn Kumar and Ms.Hetal Shah.
The NFO opens for subscription on November 27, 2020, and closes on December 10, 2020. The scheme will reopen for continuous Sale and Repurchase on or before December 24, 2020.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).