Baroda BNP Paribas Mutual Fund has introduced the launch of Baroda BNP Paribas Flexi Cap Fund on July 25 and the fund will remain open for subscription until August 5.
The fund will be managed by Sanjay Chawla, Chief Investment Officer – Equity, Baroda BNP Paribas Asset Management India.
The fund focuses on identifying investment opportunities across sectors and market capitalizations and aims to create long-term wealth by investing predominantly in equity and equity related securities.
Before we proceed, let us first deconstruct the concept of a new fund offer and flexi cap funds.
New Fund Offer
A New Fund Offer (NFO) is the process through which an asset management company (AMC) creates a new fund on a first-subscription basis to facilitate the purchase of securities.
The fund house collects funds from the general public through an NFO in order to buy securities such as equity shares, bonds, and other financial instruments on the market. As a newcomer to the market, NFO is less expensive than the current funds.
Flexi Cap Funds
Flexi-cap funds are those funds that invest in businesses with market capitalizations ranging from large cap, mid cap to small cap and hence, are also known as multi-cap funds or diversified equity funds.
With the help of these funds, investors may diversify their investment portfolio among businesses with various market capitalizations, reducing volatility and risk.
A noteworthy feature of a flexi-cap fund is that it is best positioned to provide risk-adjusted returns because it can vary its exposure to large-caps, mid-caps, and small-caps dependent on domestic or global macroeconomic conditions and market values
Fund Overview
According to the AMC, Baroda BNP Paribas Flexi Cap Fund is an open-ended dynamic equity scheme investing across large cap, mid cap, small cap companies, with no limits on market cap allocations.
The fund aims to invest across sectors, in companies that have strong business and economic fundamentals, reputed management, and good long-term growth prospects. This truly makes it the All-in-One Equity Fund. A fund for all Reasons. A fund for all Seasons.
Fund Objective
The scheme seeks to generate long term capital appreciation by investing in a dynamic mix of equity and equity related instruments across market capitalizations.
However, there can be no assurance that the investment objectives of the Scheme will be realised. The Scheme does not guarantee/indicate any returns.
Here is the list of eleven flexi cap funds that managed to beat their benchmark indices in the past three years
| Name of schemes | 3 year returns (%) | Benchmark |
| Quant flexi cap fund | 32.22 | 17.25 |
| PGIM flexi cap fund | 25.69 | 17.25 |
| Parag Parikh flexi cap fund | 24.23 | 17.25 |
| UTI flexi cap fund | 20.49 | 17.25 |
| IDBI flexi cap fund | 19.88 | 17.25 |
| Union flexi cap fund | 19.79 | 17.62 |
| Canara Robeco flexi cap fund | 19.33 | 17.62 |
| Franklin India flexi cap fund | 19.02 | 17.25 |
| JM flexicap fund | 18.74 | 17.62 |
| DSP flexi cap fund | 18.30 | 17.25 |
| Edelweiss flexi cap fund | 18.08 | 17.25 |
(Source - AMFI data, July 25, 2022)
Baroda BNP Paribas Flexi Cap Fund will re-open for ongoing subscriptions within five business days from the date of allotment. During the NFO period, the fund’s NAV is priced at ₹10 per unit. The minimum subscription amount is ₹5,000 and in multiples of ₹1 thereafter.
