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:
Indicative allocations (% of total assets)
Equity & equity-related instruments of small-cap companies
Equity and equity-related instruments of other than small-cap companies
Debt & Money Market instruments
Low to Medium
Units issued by REITs & INvITs
Medium to High
Units of Mutual Fund Scheme
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
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.