Baroda Pioneer Infrastructure Fund
Baroda Pioneer Mutual Fund house has announced an NFO targeting the infrastructure returns with their open ended equity scheme, Baroda Pioneer Infrastructure Fund. This new fund is open from May 3, 2010 to May 31, 2010. This fund is targeting the key catalyst which is definitely required on the growth of India namely building the infrastructure in order to deliver inclusive growth.
Ever since the Finance Minister announced additional tax breaks for the salaried class to the extent of Rs. 20,000 there has been flurry of new offerings that was expected and this fund, Baroda Pioneer Infrastructure Fund is one among them. But remember that this fund does not help you in saving tax for investing in it, this is an entirely different NFO offered by Baroda Pioneer Asset Management Company. Expect more similar infrastructure funds and/or infrastructure bonds (this will help you save tax) from both private and public companies and/or banks.
Baroda Pioneer Infrastructure Fund is an NFO which will be open to public till May 31, 2010 and will reopen again after one month. The fund manager of this fund is Mr Dipak Acharya.
Investment Objective: The main objective of this fund is to generate long-term capital benefit by making investments in equity as well as its related securities of the companies which are mostly involved in infrastructure and its related sectors.
Asset Allocation: Equities and its related securities and derivatives and primarily involved in infrastructure and its related sectors of 65 to 100% as well as debt in 0-35%.
Scheme Options: This open-ended equity scheme offers both growth as well as dividend (reinvestment and payout) options.
Benchmark Index: The benchmark of Baroda Pioneer Infrastructure Fund is CNX 100.
Offer Price and Minimum Investment: As usual the offer price per unit for this fund during NFO will be Rs. 10 and the minimum investment is Rs. 5000 and in multiples of Rs. 1 and above. SIP option is also available.
Loads: There is no entry load but there will be an exit load of 1% if the fund is redeemed within one year of investment.
Primary Industries: The primary industries that this fund might invest are as said above related to infrastructure sectors and more specifically construction, cement, engineering, petroleum and industrial products, oil, power, telecom, housing finance, transportation, gas, financial institutions, etc.
Although being a sector related fund this Baroda Pioneer Infrastructure Fund, but still the key objective remains the infrastructure which means that this fund has great future since this seems to be the primary objective of the present Indian government and can mostly expect an upward trend in this sector at least in the near to far future. But think twice and invest since being a sector oriented fund. But still a worthy try especially during NFO if you are planning for long term investment objectives.
Related Posts:
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment