Introduction: A New Fixed-Income Investment Option
Bajaj Finserv Asset Management has introduced its latest fixed-income investment product, the Bajaj Finserv Banking and PSU Fund. This open-ended debt scheme is designe to invest in debt instruments issued by banks, Public Sector Undertakings (PSUs), Public Financial Institutions, and Municipal Bonds. It offers an investment opportunity aimed at generating income while maintaining a high level of credit quality within investment portfolios.
Mitigating Credit Risk for Steady Returns
The Bajaj Finserv Banking and PSU Fund aims to mitigate credit risk while maximizing the potential for stable returns. With a focus on the 5-year profile, the fund is positioned to navigate the current market’s largely flat yield curve. This strategy is expected to capitalize on the anticipated downward shift in the yield curve, driven by factors such as India’s inclusion in emerging market bond indices. The fund also reasonable mark-to-market gains, potentially making it an attractive option for investors with medium to long-term horizons.
Ganesh Mohan, CEO of Bajaj Finserv Asset Management,the fund’s ability to provide investors with a stable investment option in the banking and PSU space. He noted that it’s suitable for those seeking to diversify their portfolios beyond traditional banking products, making it an appealing proposition for a broad range of investors.
Chief Investment Officer’s Insights
Nimesh Chandan, CIO of Bajaj Finserv Asset Management, emphasized the fund’s commitment to maintaining high credit quality. The fund’s will consist of 80% in high-quality bonds issued by banks and PSU companies, with the remaining 20% in sovereign and other high-credit-quality bonds. Chandan note that the Banking and PSU Fund is designe to offer a combination of good credit quality, performance potential, and market expertise. It presents a compelling opportunity for investors looking to diversify their fixed-income portfolios and explore the evolving investment landscape.
Fund Manager Expertise
The fund will be jointly manage by Siddharth Chaudhary, Senior Fund Manager- Fixed Income, and Nimesh Chandan, CIO, who bring to this investment product.
New Fund Offer Details
The new fund offer (NFO) is open for initial subscription from October 25, 2023, and will remain available until November 6, 2023. Following the NFO period, investors will have the opportunity for ongoing until November 15, 2023,for those interested in this new investment option.