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	Regular Direct
Options	Growth Dividend Payout Monthly Dividend Payout Quarterly Dividend Reinvestment Monthly Dividend Reinvestment Quarterly
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