NFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Gold ETF; all you need to know | Mint
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Business News/ Money / Personal Finance/  NFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Gold ETF; all you need to know
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NFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Gold ETF; all you need to know

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Gold ETF. The scheme opened for public subscription on November 28, 2023, and will close on November 30, 2023.

Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Gold ETF as a part of its new fund offers.Premium
Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Gold ETF as a part of its new fund offers.

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Gold ETF. The scheme opened for public subscription on November 28, 2023, and will close on November 30, 2023. The scheme re-opens for continuous sale and purchase within five days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended exchange-traded fund replicating/tracking the domestic prices of gold. This product is suitable for investors seeking

  • Long-term capital appreciation
  • Investment in physical gold and returns that track the domestic price of gold subject to tracking error

What is the main objective of investing in this fund?

The investment objective of the scheme is to generate returns that are in line with the performance of physical gold in domestic prices, subject to tracking error. However, there is no assurance that the investment objective of the scheme will be realized and the scheme does not assure or guarantee any returns.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations

(% of total assets)

Risk Profile

Physical gold & gold related instruments

95% to 100%

High

Debt instruments, units of debt mutual fund schemes, money market instruments, cash & cash equivalents etc

0% to 5%

Low to Medium

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such gold exchange-traded funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Name of the fund

10-year returns (in %)

Axis Gold ETF

5.80

Nippon Gold ETF

5.80

SBI Gold ETF

6.02

IDBI Gold Exchange Traded Fund

-

ICICI Prudential Gold ETF

-

Invesco India Gold ETF

5.86

Kotak Gold ETF

6.13

HDFC Gold Exchange Traded Fund

6.02

UTI Gold Exchange Traded Fund

-

Aditya Birla Sun Life Gold ETF

6.12

SBI- ETF Gold

-

Canara Robeco Gold Exchange Traded Fund

-

Edelweiss Gold ETF

-

Source: MoneyControl

How will the scheme benchmark its performance?

The scheme’s benchmark is determined by the domestic price of gold, given that the scheme invests in both physical gold and gold-related instruments. The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" would also be “Nil". 

The AMC reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.

Who will manage this scheme?

Vishnu Soni would be looking after investments in this scheme.

Does the fund contain any inherent risk?

The scheme involves “High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

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Published: 28 Nov 2023, 03:29 PM IST
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