Mutual Fund News : Baroda BNP Paribas Mutual Fund Introduces Baroda BNP Paribas Floater Fund

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Baroda BNP Paribas Mutual Fund has launched – Baroda BNP Paribas Floater Fund

An open-ended debt scheme predominantly investing in floating rate instruments. A relatively High Interest Rate Risk and Moderate Credit Risk. 

Accordingly, the investment objective of the scheme is to generate regular income through investment in a portfolio comprising predominantly of floating rate instruments and fixed rate instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt and money market instruments.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Under normal circumstances, Baroda BNP Paribas Floater Fund will hold an allocation of 65% to 100% of its assets in Floating Rate Debt Instruments (including Fixed Rate Debt Instruments swapped for floating rate returns), 0% to 35% in Debt Securities & Money Market Instruments and 0% to 10% in Units issued by REITs & INvITs.

As per the Scheme Information Document, the investment strategy for Baroda BNP Paribas Floater Fund aims to allocate assets across floating rate instruments, fixed rate instruments and derivatives to generate returns. The interest rate in floating rate securities is reset at regular intervals based on a certain benchmark or reference rate. Such securities help to reduce the interest rate risks in a portfolio. The scheme can also invest in fixed income instruments created synthetically (using a combination of derivatives like Interest rate swaps). The allocation between fixed and floating rate instruments, subject to the limits mentioned in the asset allocation table, would be based on the view on the direction of interest rates and other factors affecting the debt markets in India.

Baroda BNP Paribas Floater Fund’s performance will be benchmarked against CRISIL Low Duration Debt Index

The scheme will be managed by Mr Mayank Prakash and Mr Prashant Pimple.

The NFO opens for subscription on April 10, 2023, and closes on April 24, 2023. The schemes will reopen for continuous sale and repurchase on Within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum Capital Withdrawal (IDCW) Option.