Baroda Pioneer AMC today launched a public sector undertakings bond fund - an open-ended debt scheme. The portfolio of the fund would predominantly consist of PSU bonds and government securities of varying yields and maturities. The new fund offer which opened on Monday will be available till 21 December.
The fund will look to deliver competitive return on investments by designing a portfolio that will track interest rate movements with low credit risk due to its exposure to PSU bonds.
"PSUs have strong fundamentals and sustainability required to maintain long-term growth. With interests in high growth sectors like infrastructure, capital goods, oil & gas, PSU are expected to drive India's growth over the next few years," said Rajan Krishnan, chief executive officer of Baroda Pioneer AMC.
