Bajaj Finserv Asset Management has unveiled its latest offering, the Bajaj Finserv Banking & PSU Fund. The New Fund Offer (NFO) will commence on October 25, 2023, and will wrap up by November 6, 2023. The fund is benchmarked to the Nifty Banking & PSU Debt Index. Importantly, there’s no entry or exit load associated with this fund.
The company highlights that this fund was crafted with the intent to present investors with a lucrative investment opportunity. Its primary aim is to afford investors the chance to invest in fixed income while ensuring the high credit quality of their investment portfolio. By potentially reducing credit risk and optimizing for steady returns, this fund could be a game-changer for many.
Designed to operate in alignment with the yield curve, the fund emphasizes a maturity profile spanning approximately five years. This approach aims to bolster the fund’s performance capabilities, offering investors an attractive risk-reward proposition, especially in the current flat yield curve scenario.
Investors can benefit from market factors, such as India’s inclusion in emerging market bond indices, which may lead to potential capital appreciation and an overall better performance. Alongside expectations of a mid to long-term bond rally, the fund might also present opportunities for average yield reversal, thereby providing potential mark-to-market gains.
For investors eyeing diversified debt options beyond traditional banking products, this fund can be a compelling proposition.
Ganesh Mohan, CEO of Bajaj Finserv Asset Management, commented on the launch, emphasizing the fund’s potential. “Our Banking and PSU Fund opens avenues for investors to capitalize on the fixed income opportunities within the banking and PSU sectors, while also benefiting from expert fund management,” he said.
Nimesh Chandan, the CIO of Bajaj Finserv Asset Management, further added that maintaining high credit quality is a top priority. The fund will allocate approximately 80% in high-credit-quality bonds of banks and PSU companies, with the remaining 20% being allocated to sovereign and other high-quality bonds.
Chandan expressed, “We aim to offer a unique blend of credit quality, performance ability, and market expertise with this Banking & PSU fund. It’s an attractive option for those seeking diversification in their fixed income portfolio and looking for opportunities in the emerging investment landscape.”
