Publish Date:
Baroda BNP Paribas Mutual Fund introduces – Baroda BNP Paribas Small Cap Fund
It is an open-ended equity scheme predominantly investing in small cap stocks.
Accordingly, 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 realized. The Scheme does not guarantee/indicate any returns.
[Read: 7 Top-performing Small Cap Mutual Funds with High Returns on 10-Year SIP]
Under normal circumstances, Baroda BNP Paribas Small Cap Fund will hold an allocation of 65% to 100% in Equity & Equity related instruments ^ of small cap companies, 0% to 35% in Equity and equity related instruments^ of other than small cap companies, 0% to 35% in Debt* & Money Market instruments, 0% to 10% in Units issued by REITs & INvITs and 0% to 10% Units of Mutual Fund Scheme.
As per the Scheme Information Document, Baroda BNP Paribas Small Cap Fund intends to generate long-term capital appreciation from a diversified portfolio of small cap companies. Small caps are likely to become the blue-chips and leading companies of the future.
Small Cap companies are usually in growing industries and have nimble operations, which can adapt swiftly to changing market conditions & seize opportunities. The scheme will follow a bottom-up approach to pick stocks across the sectors based on the quality of the business model and quality of management. The fund manager will look at both value and growth stocks in picking out individual companies.
[Read: Reasons That Should Not Be the Basis for Investing in Small-Cap Funds]
Baroda BNP Paribas Small Cap Fund performance will be benchmarked against Nifty Small Cap 250 TR Index
The scheme will be managed by Mr Shiv Chanani and Mr Miten Vora.
The NFO opens for subscription on October 06, 2023 and closes on October 20, 2023. The schemes will reopen for continuous sale and repurchase on Within 5 Business days from the date of Allotment.
The fund's face value is Rs 10/- per unit. The minimum subscription amount is Rs 5,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal (IDCW) options.