New Fund Offer: Bajaj Finserv Banking and PSU Fund; check details
Bajaj Finserv Asset Management has launched its fourth fixed-income investment product – Bajaj Finserv Banking and PSU Fund. It is an open-ended debt scheme investing in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds with relatively high-interest rate risk and moderate credit risk.
In a statement, the AMC said this is an investment opportunity designed to offer investors an avenue for income generation. “This fund intends to give investors the opportunity to invest in fixed income while ensuring that their investment portfolios have a high level of credit quality,” the AMC said.
This fund may mitigate the credit risk while increasing the possibility of steady returns. The AMC said it is designed to ride the yield curve, with an emphasis on around the 5-year maturity profile, which optimizes performance potential and provides investors with an optimal risk-reward proposition in the current market where the yield curve is largely flat.
“This investment scheme offers investors an opportunity to benefit from the anticipated curve shift downwards and potential capital appreciation attributable to factors such as India’s inclusion in emerging market bond index,” the AMC said.
“Also, the mean reversion of yields, combined with the outlook for a bond rally in the medium-to-long term, offers the prospect of reasonable mark-to-market gains. This may be a potentially rewarding proposition for investors with medium to long-term investment horizons,” it added.
Also Read: How will Parag Parikh Arbitrage Fund make money for investors?
Ganesh Mohan, CEO, Bajaj Finserv Asset Management said, “Our Banking and PSU Fund opens the door for investors to tap into the fixed income
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