Bajaj Finserv Asset Management launches new banking and PSU fixed income fund

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.

This may mitigate thecredit risk while increasing the possibility of steady returns. The fund 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 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.

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 rewardingproposition for investors with medium to long-term investment horizons.

Speaking on the launch of the product, Ganesh Mohan, CEO, Bajaj Finserv Asset Management said, “Our Banking and PSU Fund opens the door for investors to tap into the fixed income investment opportunities available in the banking and PSU space,while enjoying the benefits of professional fund management, said a press release today.

Mr. Nimesh Chandan, CIO, Bajaj Finserv Asset Management said, “The fund would maintain high credit quality and the allocation would comprise of 80% in high credit quality Bonds of Banks and PSU companies and 20% in sovereign and other high credit quality bonds."
He further added, “the Banking and PSU Fund seeks to offer investors a thoughtful combination of good credit quality, performance potential, and market expertise, release added.