Publish Date:
Baroda BNP Paribas Mutual Fund has launched – Baroda BNP Paribas NIFTY SDL December 2028 Index Fund.
It is an n open-ended Target Maturity Index Fund replicating / tracking the NIFTY SDL December 2028 Index) A Relatively High Interest Rate Risk and Relatively Low Credit Risk.
Accordingly, the investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty SDL December 2028 Index before expenses, subject to tracking errors, fees and expenses. However, there is no assurance that the objective of the Scheme will be realised, and the Scheme does not assure or guarantee any returns.
Under normal circumstances, Baroda BNP Paribas NIFTY SDL December 2028 Index Fund will hold an allocation of 95% to 100% of its assets in Debt Instruments comprising of Nifty SDL December 2028 Index and 0% to 5% in Cash & Money Market instruments and Units of liquid and debt mutual fund schemes.
As per the Scheme Information Document, Baroda BNP Paribas NIFTY SDL December 2028 Index Fund will be passively managed employing an investment strategy that tracks the performance of the underlying index, subject to tracking error.
Normally, the fund would buy and hold the securities till maturity, in line with the maturity of the index. However, this would be subject to any selling to meet redemption requirements or re-balancing the portfolio. The Scheme may or may not hold all of the eligible securities which are part of the Index, subject to suitability and availability of the eligible securities from time to time.
Baroda BNP Paribas NIFTY SDL December 2028 Index Fund’s performance will be benchmarked against NIFTY SDL December 2028 Index.
The scheme will be managed by Mr Mayank Prakash
The NFO opens for subscription on March 14, 2023, and closes on March 21, 2023. The schemes will reopen for continuous sale and repurchase Within 5 business day 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.