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-
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Debt and Money Market Instruments issued by Banks, PSUs, PFIs and Municipal Bonds. | 80 | 100 | Low to Moderate |
| Debt (including government securities) and money market instruments issued by entities other than Banks, PFIs and PSUs. | 0 | 20 | Low to Moderate |
| Units that are issued by REITs and INVITs | 0 | 10 | Moderate to High |
About the scheme-
| Name of the fund | Baroda Banking & PSU Bond Fund |
| Fund launched by | Baroda Mutual Fund |
| Asset Management Company | Baroda Asset Management India Limited |
| Type of scheme | An open-ended debt scheme investing in debt and money market securities of banks, PSUs, PFIs and Municipal Bonds. |
| Investment Objective | The investment objective of the scheme is to generate regular income through investments in debt and money market securities. |
| Benchmark | NIFTY Banking & PSU Low Duration Bond Index |
| Entry Load | Not Applicable |
| Exit Load | Nil |
| Minimum Application Amount | Rs. 5,000 & in multiple of Rs.1 thereafter |
| Minimum Additional Amount | Rs. 1,000 & in multiple of Rs.1 thereafter |
| Allotment Date | Will be completed in 5 Business days after the closure of the NFO |
| STP & SWP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Alok Sahoo, Mr. Karn Kumar and Ms. Hetal Shah (Dedicated for overseas investments) |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Monthly SIP | 12 | Rs.500 & in multiple of Rs.1 thereafter |
| Quarterly SIP | 4 | Rs. 1,500 & in multiple of Rs.1 thereafter |