New Fund Offer (NFO): 13th September - 24th September, 2010
Baroda Pioneer today announced the launch of Baroda Pioneer PSU Equity Fund. The scheme is an open-ended scheme providing investors opportunity for long-term capital growth through investments in a diversified basket of equity stocks of domestic Public Sector Undertakings (PSUs).
The scheme seeks to invest minimum 65% or more in equity & equity related securities covered under the universe of Public Sector Undertakings including derivates. The balance will be invested in debt and money market instruments.
Speaking on the new fund, Mr. Rajan Krishnan, Chief Executive Officer, Baroda Pioneer AMC, said “In my opinion PSUs in India are strongly linked to India’s progress over the last 60 years. PSUs operate in high growth sectors like banking, infrastructure, capital goods, power, minerals, oil & gas. One of the main criteria of Baroda Pioneer’s PSU Equity Fund is to provide investors the opportunity to benefit from future growth in PSUs and also endeavour to generate excess returns through stock selection rather than holding cash and timing the market.”
Some of the key features of the fund are:
* The scheme offers a portfolio consisting of fundamentally strong companies with characteristics like large size enterprise, long –term track record, high corporate governance standards, low debt on books and strong cash positions
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* The scheme will look to identify attractive investment opportunities on the basis of government policies having the potential to deliver superior growth in the long-term.
* The scheme aims to mitigate risks on behalf of the investors by investing in a variety of sectors and market capitalisation values.
* The portfolio would normally consist of approximately 30-35 PSU stocks.
The scheme offers both growth and dividend options. Units will be issued at Rs.10/- per unit, the minimum application amount is Rs. 5,000/- and in multiples of Re.1/- thereafter. The benchmark of the scheme is BSE PSU Index. Entry Load – Nil Exit Load - 1.00% if redeemed on or before 365 days from the date of allotment of units, Nil if redeemed after 365 days from the date of allotment of units
The New Fund Offer is available from 13th September to 24th September, 2010
About Baroda Pioneer Asset Management Company
Baroda Pioneer Asset Management Company Limited is a joint venture between Bank of Baroda and Pioneer Investments S.p.A. Since the formation of the joint venture in 2008, Baroda Pioneer has worked relentlessly to create an investment platform suited to the requirements of mutual fund investors in India. Baroda Pioneer offers a range of equity, debt and money market offerings. Their average assets under management (AAuM) stands at Rs. Rs.4, 726 Cr (as on 31 Aug’10) and they operate out of 22 locations in India.