Baroda Pioneer Mutual Fund has announced launch of the Baroda Dynamic Equity Fund via a new fund offer (NFO). The NFO period of this new scheme started on 22nd October and will end on 2nd November 2018. This scheme will operate as an open-ended dynamic asset allocation hybrid fund allowing investors to purchase/redeem scheme units on all business days.
Baroda Dynamic Equity Fund is an equity-oriented hybrid scheme, hence, for tax purposes, no less than 65% of scheme assets have to be invested in equities and equity derivatives. The portfolio exposure of this scheme towards debt and money market instruments is capped at 35%. Additionally, this fund’s asset allocation towards units of REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) is limited to 10% of total assets. While this hybrid fund will not invest in foreign securities or credit default swap instruments, the scheme can invest up to 10% of net assets in various securitized debt instruments.
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Baroda Dynamic Equity Fund will utilise the S&P BSE 200 Index (50%) and the CRISIL Short Term Bond Fund Index (50%) as the chosen benchmark. As of 19th October, the S&P BSE 200 Index has featured 1 year and 5 year returns of -1.38% and 12.38% respectively. On the other hand, the CRISIL Short Term Bond Fund Index recorded returns of 4.27% and 8.22% for the 1 year and 5 year periods respectively (as of 30th September 2018). Thus the weighted returns of this scheme’s benchmark for the 1 year and 5 year return periods is calculated at 1.45% and 10.3% respectively.
Sanjay Chawla and Alok Sahoo will co-manage the Baroda Dynamic Equity Fund. Other leading schemes managed by them include Baroda Pioneer Large Cap Fund, Baroda Pioneer Short Term Bond Fund and Baroda Pioneer Credit Risk Fund – Plan B. Among these, the Baroda Pioneer Large Cap Fund has emerged as one of the top performers in its category with 3 and 5 year returns of 8.90% and 13.66% respectively as of 19th October 2018.
Additional Information About the Baroda Dynamic Equity Fund:
| NFO Period | 22nd October to 2nd November |
| Minimum Investment | Rs. 5000 |
| Benchmark Index | S&P BSE 200 Index (50%) + CRISIL Short Term Bond Fund Index (50%) |
| Fund Managers | Sanjay Chawla (equity portion) and Alok Sahoo (debt portion) |