Baroda Mutual Fund has announced a New Fund Offer (NFO) for Baroda Overnight Fund, an open-ended debt scheme which will invest in overnight securities. The NFO period begins on April 23, 2019 and will close on April 24, 2019. The scheme aims to generate returns commensurate with low risk and high level of liquidity.
Asset Allocation of Baroda Overnight Fund
Under normal circumstances, the Baroda Overnight Fund will invest its assets in the following manner:
| Asset Class | Asset Allocation | |
| Minimum | Maximum | |
| Debt and Money Market instruments with a maturity of up to one business day | 0% | 100% |
The scheme may participate in reverse repos in government securities and repos of corporate debt securities. However, the scheme will not have any exposure to debt derivatives, securitized debt, units of alternative investment funds such as REITs and INViTs, foreign securities as well as Credit Default Swaps.
Benchmark of Baroda Overnight Fund
The performance of the Baroda Overnight Fund will be benchmarked against CRISIL Overnight Index. The return details of the index are as follows:
| Index | 1 Year Return | 3 Year Return | 5 Year Return |
| CRISIL Overnight Index | 6.31% | 6.17% | 6.81% |
(Data as on March 31, 2019; Source: CRISIL)
Fund Managers of Baroda Overnight Fund
Baroda Overnight Fund will be jointly managed by Mr. Alok Sahoo and Mr. Hetal Shah. Other schemes being jointly managed by the duo include Baroda Liquid Fund and Baroda Short Term Bond Fund. The return details of these two schemes are as follows:
| Scheme | 1 Year Return | 3 Year Return | 5 Year Return |
| Baroda Liquid Fund | 7.51% | 7.21% | 7.78% |
| Baroda Short Term Bond Fund | 7.45% | 8.08% | 8.46% |
(Data as on March 31, 2019; Source: Pulse Labs)
Key information about Baroda Overnight Fund NFO
| NFO period | April 23, 2019 – April 24, 2019 |
| Minimum application amount | Rs. 5,000 |
| Exit load | Nil |
| Benchmark | CRISIL Overnight Index |
| Fund Manager | Alok Sahoo and Hetal Shah |
