Canara Robeco Banking and PSU Debt Fund - NFO Overview
Canara Robeco AMC has come out with NFO of " Canara Robeco Banking and PSU Debt Fund ", which is an open-ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds. NFO Period : 29th July - 12th August 2022. Why invest in a Banking and PSU themed debt fund now ? - Volatile Geo-political situation - High inflation, leading to sharp Interest rate hikes - Rising funding costs, coupled with demand drop(due to inflation), likely to hit margins - Credit profile of lower rated companies may deteriorate in coming years - Prudent to invest in a portfolio of AAA/A1+ rated securities primarily issued by Banks and PSUs which are of high credit quality and carry a relatively lower credit risk Note : This type of fund carries a relatively high interest rate risk and moderate credit risk. Why Canara Robeco Banking and PSU Debt Fund ? - The Fund seeks to generate optimal retur...