Mumbai: Baroda Pioneer Mutual Fund has launched an infrastructure fund, an open-ended equity scheme. The fund will invest 65 percent in equities and balance in debt and money market instruments. The offer of the new fund opens on May 3 and closes on May 31.

According to Rajan Krishnan, CEO, Baroda Pioneer Asset Management Company, a joint venture between Bank of Baroda and Pioneer Investments, the fund will invest in equities and equity-related securities including derivatives of core infrastructure companies. The two-year-old mutual fund currently has around Rs. 5,000 crore of assets under management and hopes to grow faster than the industry's growth.

According to Krishnan, for a long-term sustainable return, infrastructure is a safe bet. Despite the delay in execution of projects and other issues, the demand for infrastructure facilities will ensure growth in the sector, he said.