Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Value Fund, an open-ended equity value fund scheme that seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments by following a value investment strategy.
However, there can be no assurance that the investment objectives of the scheme will be realized. The scheme does not guarantee/indicate any returns.
The scheme opened for public subscription on May 17, 2023, and will close on May 31, 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 that seeks capital appreciation on investments over the long term. Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund said, “At Baroda BNP Paribas AMC, we have a strong investment culture backed by a disciplined framework, seasoned team, and robust processes. In our new fund, Baroda BNP Paribas Value Fund, we aim to identify investment opportunities where stocks are available at a discount to their intrinsic value. These opportunities can be across stocks, sectors, and market caps. To manage risk, we have a robust margin of safety framework: The margin of safety in the balance sheet, in earnings, and in valuation represents our ‘3 S Framework’”.
What is the main objective of investing in this fund?
The scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments by following a value investment strategy. However, there can be no assurance that the investment objectives of the scheme will be realized. 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 and Equity Related Instruments||65%||100%||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 equity value 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
Name of the Value Fund
HDFC Mutual Fund
HDFC Capital Builder Value Fund
Canara Robeco Mutual Fund
Canara Robeco Value Fund
IDBI Mutual Fund
IDBI Long Term Value Fund
Axis Mutual Fund
Axis Value Fund
DSP Mutual Fund
DSP Value Fund
Aditya Birla Sun Life Mutual Fund
Aditya Birla Sun Life Pure Value Fund
Indiabulls Mutual Fund
Indiabulls Value Fund
Nippon India Mutual Fund
Nippon India Value Fund
Quantum Mutual Fund
Quantum Long Term Equity Value Fund
UTI Mutual Fund
UTI Value Opportunities Fund
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of the Nifty 500 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 1 year from the date of allotment - Nil.
- If units of the scheme are redeemed or switched out in excess of the limit within 1 year from the date of allotment - 1% of the applicable NAV.
- If units of the scheme are redeemed or switched out after 1 year from the date of allotment - Nil.
The above load shall also be applicable for switches between the schemes of the Fund and all Systematic Investment Plans (SIPs), Systematic Transfer Plans, and Systematic Withdrawal Plans. No load will be charged on units issued upon re-investment of the amount of distribution under the same IDCW option and bonus units.
Who will manage this scheme?
Shiv Chanani is the designated fund manager 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.