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Bajaj Finserv MF has launched Bajaj Finserv Gilt Fund, an open-ended debt scheme investing in government securities across maturities with relatively high interest rate risk and relatively low credit risk. The scheme will be benchmarked against CRISIL Dynamic Gilt Index.
The fund’s investment objective is to generate credit risk-free returns through investments in sovereign securities issued by the Central Government or state governments. The scheme can also invest in any security unconditionally guaranteed by the Government of India, and/or reverse repos in such securities as per applicable RBI regulations and guidelines.
In a press release, Ganesh Mohan, CEO, Bajaj Finserv MF said, “As inflation moderates, growth is expected to become a key focus area and policy priorities are likely to shift from controlling inflation to supporting growth. Many major economies are showing signs of slowing down and central banks worldwide are likely to reduce rates to address this challenge. There is a significant possibility of a similar rate cut happening in India as well. This is an opportunity for investors to invest in all-weather funds such as Bajaj Finserv Gilt Fund that aims to benefit most from opportunities arising with moderation in inflation, policy shift towards growth and the potential rate cuts.”
Nimesh Chandan, CIO, Bajaj Finserv MF said, “We will be using the in-depth understanding of macroeconomic cycles, combined with quantitative and behavioral analysis of market variables with an aim to generate healthy returns for the investors. Gilt Funds provide an opportunity for investors to benefit from downward movement in interest rates. In this fund, we will also focus on identifying and investing in any mispriced segment in the yield curve to generate returns.”
