- An open-ended equity scheme predominantly investing in small-cap stocks
- NFO opened on October 06, 2023 and will close on October 20, 2023
- The Scheme intends to generate long-term capital appreciation from a diversified portfolio of small-cap companies
- The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment
NE BUSINESS BUREAU
MUMBAI, OCT 13
Baroda BNP Paribas Mutual Fund announced the launch of Baroda BNP Paribas Small Cap Fund, an open-ended equity scheme predominantly investing in small-cap stocks. The fund will be managed by Shiv Chanani (Senior Fund Manager). Shiv has over 24 years of experience and has deep experience in mid and small cap space. The fund will be benchmarked against Nifty Small Cap 250 TR Index.
The salient features of the Small-Cap Fund include
- The fund will invest more than 65% of the net assets into small-cap companies
- The fund will follow a bottom-up stock-picking approach. Emphasis will be on selecting companies with strong fundamentals, quality business models and strong management teams.
- The fund will be sector-agnostic
- It aims to build wealth for investors by tapping into companies which have the potential to become leading companies in future.
“Baroda BNP Paribas Small Cap Fund is an ideal option for long-term investors looking to benefit from large structural growth opportunity in the Indian economy. Small Cap segment offers investment options across a wide range of sectors and is characterised by relatively high growth rates. Over the last 10 years, Nifty Small Cap TRI index has delivered an impressive 21% CAGR. We believe our disciplined investment process that focussed on BMV (Business, Management and Valuation), strong risk management framework and an experienced investment team positions us well to serve our investors” said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.
The scheme is suitable for investors looking for long-term wealth creation through Indian equity market. Small Cap stocks typically have higher growth potential but tend to display more volatility in short-term and therefore investors should consider investment horizon of more than three years.
The NFO opened on October 06, 2023, will close on October 20, 2023. The Scheme offers the following two plans: Baroda BNP Paribas Small Cap Fund – Regular Plan and Baroda BNP Paribas Small Cap Fund – Direct Plan. Each Plan offers Growth Option and Income Distribution cum Capital Withdrawal (IDCW) Option. The IDCW option offers two options: Payout of Income Distribution cum capital withdrawal option and Reinvestment of Income Distribution cum capital withdrawal option.
The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
Investors can invest under the scheme with a minimum investment of ₹5,000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
