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Baroda Banking & PSU Bond Fund NFO - Investment Objective, Returns, Risk, Entry & Exit Load

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Gaurav Seth
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Gaurav Seth
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Baroda Banking & PSU Bond Fund NFO

Baroda Mutual Fund has announced the launch of Baroda Banking & PSU Bond Fund. The scheme would be investing in debt-related securities of Banks, PSUs, Corporate Bonds to generate good returns over the short term to medium term.

The New Fund Offer (NFO) starts from 27th November 2020 and will end on 10th December 2020.

Scheme reopens for continuous sale and repurchase on or before 24th December 2020.

Investment Objective 

The investment objective of the scheme is to invest in debt and money market securities issued by the Banks, Public Sector undertakings (PSUs), and many more to generate a regular income through the diversified portfolio of debt and  money market securities.

Features

  • The Fund aims to maintain liquidity in the portfolio by investing a minimum of 80% in banks debentures and bonds, PSU, PFI, state and central government bonds, and in other debt securities.
  • The Fund has the strategy to invest in the debt instruments which give consistent returns with medium risk and also to maintain focus on safety and liquidity.
  • The Fund focuses on Credit quality, liquidity, and risk-adjusted returns.
  • The fund targets generating regular income for their investors through a diversified portfolio.

Why invest in Baroda Banking & PSU Bond Fund?

Reasons to invest in Baroda Banking & PSU Bond Fund:

- The fund aims to build a diversified and superior quality portfolio by investing a minimum of 80% in Debt and Money Market securities.

-The fund offers high liquidity as the fund invests in debt instruments and all the debt instruments are highly liquid in nature.

-As it is a Debt fund, so this fund can offer Indexation benefits, if the investments are held for 3 years or more.

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in Regular and stable income.
  • Interested in investing in a debt scheme which invests in debt and money market instruments of the Banks, PSUs, PFIs, and many more.
  • Recommended for investors who want good returns with less risk and volatility.
  • Interested in investing in a scheme which also gives good liquidity along with the returns.

Assets Allocation Pattern-

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Debt and Money Market Instruments issued by Banks, PSUs, PFIs and Municipal Bonds.80100Low to Moderate
Debt (including government securities) and money market instruments issued by entities other than Banks, PFIs and PSUs.020Low to Moderate
Units that are issued by REITs and INVITs010Moderate to High

About the scheme-

Name of the fundBaroda Banking & PSU Bond Fund
Fund launched byBaroda Mutual Fund 
Asset Management CompanyBaroda Asset Management India Limited
Type of schemeAn open-ended debt scheme investing in debt and money market securities of banks, PSUs, PFIs and Municipal Bonds.
Investment ObjectiveThe investment objective of the scheme is to generate regular income through investments in debt and money market securities.
BenchmarkNIFTY Banking & PSU Low Duration Bond Index
Entry LoadNot Applicable
Exit LoadNil
Minimum Application Amount Rs. 5,000 & in multiple of Rs.1 thereafter
Minimum Additional AmountRs. 1,000 & in multiple of Rs.1 thereafter
Allotment DateWill be completed in 5 Business days after the closure of the NFO
STP & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout Monthly
  • Dividend Payout Quarterly
  • Dividend Reinvestment Monthly
  • Dividend Reinvestment Quarterly
Fund ManagersMr. Alok Sahoo, Mr. Karn Kumar and Ms. Hetal Shah (Dedicated for overseas investments)

SIP Details

Type Minimum InstallmentsMinimum Amount
Monthly SIP12Rs.500 & in multiple of Rs.1 thereafter
Quarterly SIP4Rs. 1,500 & in multiple of Rs.1 thereafter

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