Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Small Cap Fund, an open-ended equity value fund scheme that seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. However, there can be no assurance that the investment objective of the scheme will be realised. The scheme does not guarantee/indicate any returns.
The scheme opened for public subscription on October 06, 2023, and will close on October 20, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended equity value fund scheme predominantly investing in small-cap stocks.
What is the main objective of investing in this fund?
The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. However, there can be no assurance that the investment objectives of the scheme will be realised. The scheme does not guarantee/indicate any returns.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Minimum | ||
Equity & equity-related instruments of small-cap companies | 65% | 100% | High |
Equity and equity-related instruments of other than small-cap companies | 0% | 35% | High |
Debt & Money Market instruments | 0% | 35% | Low to Medium |
Units issued by REITs & INvITs | 0% | 10% | Medium to High |
Units of Mutual Fund Scheme | 0% | 10% | Medium to High |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such small-cap equity funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the stocks invested in these kinds of funds. Some of them include:
Mutual Fund House | Small cap fund |
HDFC Mutual Fund | HDFC Small Cap Fund |
ICICI Prudential Mutual Fund | ICICI Prudential Smallcap Fund |
Tata Mutual Fund | Tata Small Cap Fund |
Canara Robeco Mutual Fund | Canara Robeco Small Cap Fund |
Sundaram Mutual Fund | Sundaram Small Cap Fund |
Axis Mutual Fund | Axis Small Cap Fund |
Invesco Mutual Fund | Invesco India Smallcap Fund |
DSP Mutual Fund | DSP Small Cap Fund |
Edelweiss Mutual Fund | Edelweiss Small Cap Fund |
Kotak Mahindra Mutual Fund | Kotak Small Cap Fund |
Nippon India Mutual Fund | Nippon India Small Cap Fund |
Quant Mutual Fund | Quant Small Cap Fund |
UTI Mutual Fund | UTI Small Cap Fund |
SBI Mutual Fund | SBI Small Cap Fund |
| Source: AMFI | |
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of Nifty Small Cap 250 TRI.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged in the order
- If units of the scheme are redeemed or switched out up to 10% of the units (the limit) within one year from the date of allotment - Nil.
- If units of the scheme are redeemed or switched out in excess of the limit within one year from the date of allotment - 1% of the applicable NAV.
- If units of the scheme are redeemed or switched out after one year from the date of allotment - Nil.
For any change in load structure, the AMC will issue an addendum and display it on the website/ISCs.
Who will manage this scheme?
Shiv Chanani and Miten Vora are the designated fund managers of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
