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

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

It is an open-ended equity scheme following a value investment strategy.

Accordingly, the investment objective of the scheme is 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.

Under normal circumstances, Baroda BNP Paribas Value Fund will hold an allocation of 65% to 100% of its assets in equity and equity related instruments, 0% to 35% in Debt & Money Market instruments, 0% to 10% in Units of Mutual Fund Scheme and 0% to 10% in Units issued by REITs & InvITs.

As per the Scheme Information Document, Baroda BNP Paribas Value Fund aims to provide long term capital growth by investing in a diversified portfolio of companies that are selected using attributes of value investing.

In the medium to long term, the stock prices follow their intrinsic value. The fund would follow the philosophy of identifying mispriced opportunities between the intrinsic value and the prevailing market price of the company. To identify these opportunities the fund would look for stocks which trade at valuations lower than the overall market, their own historical average valuations or relative to their fundamental valuations. Furthermore, the fund will use top down and bottom-up approach to pick stocks across sectors based on the quality of business model and quality of management.

Baroda BNP Paribas Value Fund’s performance will be benchmarked against Nifty 500 TRI

The scheme will be managed by Mr Shiv Chanani

The NFO opens for subscription on May 17, 2023 and closes on May 31, 2023. The schemes will reopen for continuous sale and repurchase 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 option (IDCW) option.